Federal Direct Stafford Loan (Subsidized and Unsubsidized) for Undergraduate Students

Federal Direct Stafford Subsidized Loan

You must demonstrate financial need to be eligible.

• The federal government pays the interest on your behalf while you are in school at least half-time, in a six-month grace period following school, or during an authorized period of deferment.

Federal Direct Stafford Unsubsidized Loan

This loan is not based on your financial need.

• You are responsible for paying the interest during the entire life of the loan. The federal government does not pay any interest on your behalf.

Who is eligible?

• U.S. citizen, U.S. national or permanent resident.
• Student enrolled at least half-time and who meets other federal eligibility requirements.

What is the interest rate?

Stafford Subsidized Undergraduate

• 5.6% for loans first disbursed July 1, 2009 – June 30, 2010
• 4.5% for loans first disbursed July 1, 2010 – June 30, 2011
• 3.4% for loans first disbursed July 1, 2011 – June 30, 2012

Stafford Unsubsidized Undergraduate – 6.8% fixed for the life of the loan

Are there any fees?

• 0% or .5% Origination Fee*
• 0% or 1% Federal Default Fee*

* BND may pay the Stafford Loan Origination Fee and Default Fee on behalf of the student. Students attending school outside the state of North Dakota will be charged the Origination Fee and Federal Default Fee.

When does repayment begin?

Repayment begins six months after graduating or ceasing half-time enrollment.
While in repayment, BND gives a .25% interest rate reduction for automatic payments from a checking or savings account.

How long do I have to repay?

Typically you have 10 years to repay; however, new borrowers on or after 10/7/1998 with outstanding principal and interest on Federal Family Education Loan Program (FFELP) loans totaling more than $30,000 may request an extended repayment schedule of up to 25 years.

How do I apply?

BND offers an online loan application for Stafford loans. Certain colleges prefer that you begin the Stafford loan process at the school. If the school you are attending prefers this method, we will notify you to contact them directly.

Get your loan processed faster! "Apply Online"