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Ext. 5763

Dakota Education Alternative Loan (DEAL)


A Dakota Education Alternative Loan (DEAL) provides additional financial support to students who are unable to obtain adequate funds through federal student aid programs. The DEAL loan is funded by Bank of North Dakota (BND) and guaranteed by Student Loans of North Dakota (SLND).

There is also a program for medical students called Medical DEAL that covers all types of medical degrees, not just those seeking to be a doctor of medicine.

What are the fees and interest rates?


You may choose a fixed or variable interest rate loan. Interest rates may vary depending upon the student's state of legal residence or the state in which the school they are attending is located. If you choose a fixed rate, the interest rate will be set on the day your loan is first disbursed and remains the same until the loan is paid in full. If you choose a variable rate, the interest rate decreases or increases throughout the life of the loan. The interest rate has no minimum or maximum limit. Click here to view current DEAL interest rate and fee information.

How do I know if I qualify for a DEAL loan? (Qualifications are subject to change without notice.)
  • The student's state of legal residence OR the school in which the student is attending must be located in one of the following states: North Dakota, South Dakota, Minnesota, Montana, Wyoming or Wisconsin.

  • You must be a United States citizen attending an eligible school. Students must make satisfactory academic progress and must not have any other loans in default.

  • You must complete the Free Application for Federal Student Aid (FAFSA) if you are attending school at least half-time.

  • The school certifies current enrollment or acceptance for enrollment, academic progress and student eligibility.

  • You can be taking one class or a full load and qualify for a DEAL loan. Students enrolled at least half-time must have applied for subsidized or unsubsidized Stafford loans available under federal loan programs.

  • High school students participating in dual credit programs may qualify for the DEAL.

  • The minimum amount you may borrow is $500. The maximum amount that can be borrowed is equal to the cost of attendance as determined by the school for the loan period, minus all other financial aid.

  • Cosigner required for borrowers younger than 24 years of age. You, or a cosigner, must meet specific credit criteria. Third- and fourth-year medical students are exempt from this requirement. If eligible, a cosigner may be released after 24 on-time regular monthly payments.


When do I begin to repay my DEAL loan?

The student may pay the loan interest while attending school, but is not required to make payments until after graduation, or when the student drops below a half-time enrollment status. The student receives a six month grace period before the loan enters repayment. Students who receive a DEAL loan while enrolled less than half-time will not receive a grace period. You have 10 years to repay a DEAL loan and medical students have up to 15 years to repay.

Deferments are available and are similar to the deferments offered through the current FFELP and FDSLP.

A cosigner release option is available after 24 on-time payments. To qualify, the borrower must be creditworthy, in repayment on the loan(s), and have made 24 consecutive on-time regular payments.

DEAL loans are a North Dakota state alternative loan program and not part of the federal student loan program. The loans are not eligible for the Federal Student Loan Consolidation Program. However, BND will combine all DEAL loans into one monthly payment.

Where can I get a DEAL application? *

Get your loan processed faster! "Apply Online" now for a DEAL or Medical DEAL loan!

If you prefer to complete a paper application, download the Borrower DEAL Application and Promissory Note, Cosigner Credit Application and Promissory Note, and DEAL Loan Request Form below. The college will be asked to certify the student's current enrollment or acceptance for enrollment, academic progress, and eligibility. You may also contact SLND - Bank of North Dakota at 1-800-472-2166 ext. 5763 or ask your financial aid office for a DEAL application.

Get Adobe ReaderThe documents below require Adobe Acrobat Reader to view and print. If you do not have Adobe Acrobat Reader installed, please click the link above to download the latest version free of charge.

Download the Borrower Deal Application and Promissory Note
Download the Cosigner DEAL Credit Application and Promissory Note
Download the DEAL Loan Increase Request Form
Download the DEAL Loan Request Form

What is required to complete a DEAL application request?
  • A completed Borrower Application and Promissory Note
  • A completed Cosigner Credit Application and Promissory Note
  • A completed Loan Request Form
Follow the instructions for the DEAL and Medical DEAL Loan Application Process.

To apply for a Medical DEAL, follow the same instructions given above for the DEAL loan. *
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