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Dakota Education Alternative Loan (DEAL) & Medical DEAL
DEAL loans are part of a North Dakota state alternative loan program and
not part of the federal student loan program. A fixed or variable interest rate loan may be chosen. The interest rate for a fixed interest
rate loan will be set on the day the loan is first disbursed and remains
the same until the loan is paid in full. The interest rate for a variable
interest rate loan decreases or increases throughout the life of the loan
and has no minimum or maximum limit.
The current fixed interest rate of 6.58% is effective through June 30, 2008 and was calculated using the Federal
Home Loan Bank (FHLB) 10 Year Advanced Rate of 4.58% plus 2% as posted
by Federal Home Loan Bank - Des Moines on March 26, 2008 at 9:00 a.m. CT.
The current variable interest rate of 4.17% is effective through June 30, 2008 and was calculated using the 3 Month
LIBOR of 2.67% plus 1.5% as posted by Bloomberg on March 26, 2008 at 9:00
a.m. CT. (A .25% interest rate reduction will be given if
the borrower or cosigner utilizes the ACH payment method.)
Federal Loans First Disbursed on or After July 1, 2006
Rates are subject to change every July 1.
| Loan Type |
Status |
Interest Rate |
Effective Date |
| Stafford Subsidized & Unsubsidized |
All |
6.80% |
Fixed for the life of loan. |
| Parent Loan for Undergraduate Students (PLUS) and Grad PLUS (PLUS Pro)
for graduate student borrowers. |
All |
8.50% |
Fixed for the life of the loan. |
| Consolidation Loans |
All |
Interest rates are fixed rates calculated based on the weighted average
of the loans being consolidated rounded up to the next higher 1/8 percent,
not to exceed 8.25%. |
Federal Loans First Disbursed Between July 1, 1998 and June 30, 2006
These rates are calculated based upon statutory formulas and equal the
bond equivalent rate of the 91-day Treasury bills auctioned on May 29,
2007, plus certain statutory percentage add-ons. The 91-day Treasury bills
were auctioned at 4.919 percent, rounded to 4.92 percent.
| Loan Type |
Status |
Interest Rate |
Effective Date |
| Stafford Subsidized & Unsubsidized |
Repayment or Forbearance |
7.22% |
7/1/2007
to
6/30/2008 |
| Stafford Subsidized & Unsubsidized |
In-school, Grace, or Deferment |
6.62% |
| Parent Loan for Undergraduate Students (PLUS) and Grad PLUS (PLUS Pro)
for graduate student borrowers. |
All |
8.05% |
| Consolidation Loans |
All |
Interest rates are fixed rates calculated based on the weighted average
of the loans being consolidated rounded up to the next higher 1/8 percent,
not to exceed 8.25%. |
Federal Loans First Disbursed Prior to July 1, 1998
Interest rates on Stafford and PLUS loans are calculated using different statutory formulas, percentage add-ons, or both.
| Loan Type |
Origination
Fee* |
Federal Default Fee* |
Effective Date |
| Stafford Subsidized & Unsubsidized |
1.5% |
1% |
7/1/2007
to
6/30/2008 |
| Parent Loan for Undergraduate Students (PLUS) and Grad PLUS (PLUS Pro)
for graduate student borrowers. |
3% |
1% |
* The origination fee and federal default fee on all Stafford and/or PLUS
loans may be paid by your lender. Contact them for specific information.
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