What if I can’t make my payments?
There are almost always options available to assist you if you are having financial problems. Bank of North Dakota receives hundreds of phone calls every day from borrowers who need information about student loans or who are having trouble making their monthly payments. It is our job to find options to help you when you have questions or need assistance. By contacting BND immediately when you are having difficulty, you can avoid the following:
- NSF fees for any payment returned for insufficient funds
- Late charges being assessed monthly as long as your loan is delinquent
- Monthly reports to the credit bureau that your loan is delinquent
- Having us contact the references listed in your file if we are unable to reach you
You have options for repayment!
BND offers a variety of flexible repayment options. Contact BND at 800-472-2166 ext. 5660 to help you determine which of these payment options best suits your needs. Learn more about available repayment plans.
What if my delinquency persists?
- You will continue to receive delinquency letters and phone calls.
- Your credit will continue to be affected negatively.
- You may end up defaulting on your loan if the delinquency persists.
- Defaulting on your loan has very serious and long-lasting consequences.
What if I default?
Defaulting on your student loan has very serious consequences. If you default, the Guarantor of your loan will purchase your loan from BND. The Guarantor will initiate collection activity against you until the loan has been repaid in full. Defaulting may result in any or all of the following:
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- Report of the default to all national credit bureaus (aka Consumer Reporting Agencies). Adverse credit reports can affect your ability to obtain financing and can increase the cost of credit if you are approved.
- Report of default to the Internal Revenue Service, causing federal tax refunds to be withheld and applied to the loan balance (this is also true for state tax refunds)
- Loss of other federal or state payments
- Garnishment of wages
- Assignment of loan to a collection agency
- Possible charge of up to 25% of your principal balance in collection costs necessary to collect the debt
- Loss of eligibility for further assistance from any federal student aid programs and for DEAL loans
- Loss of eligibility for repayment options, deferments and interest benefits as described on the promissory note
- Suspension of professional licenses in North Dakota
- Lawsuit
- Liability for court/legal expenses
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How can I avoid default?
Communication with us is very important. We want to help you! Be sure BND has your current address and phone numbers. Contact us as soon as possible on any changes, especially if you realize you will have difficulty making payments.
Bank of North Dakota
Student Loan Services
1200 Memorial Hwy
PO Box 5509
Bismarck, ND 58506-5509
Local: 701-328-5660
Toll Free: 800-472-2166 ext. 5660
TDD: 800-643-3916
Fax: 701-328-5629
Contact us using the Contact Us form
