Bank of North Dakota Offers Tips for Student Loan Repayment

Community Announcement

BISMARCK–September 09, 20009-Many of last spring’s college graduates have experienced several life changes in recent months. First full-time employment, relocation to a new area and becoming familiar with new friends and colleagues are common. An additional milestone for students who received student loans to reach their educational goals is also approaching. As the end of the six-month grace period for student loans nears and repayment begins, Bank of North Dakota (BND) offers suggestions to assist recent graduates who will begin making their student loan repayment.

In addition to the standard repayment plan that allows federal student loan borrowers to make level payments of principal and interest over a 10-year repayment term, BND offers other repayment options including graduated, extended, income based and income sensitive repayment plans to allow borrowers to best meet their current financial situation.

BND recommends six tips to assist borrower’s beginning their student loan repayment:
1. Automatic debit: Set up monthly loan payments with automatic debit as a simple way to make on-time payments. Borrowers who pay automatically are also eligible for a .25 percent interest rate reduction at BND.
2. Utilize payment calculators or contact BND to estimate monthly payments and total interest under the different repayment options available.
3. Link your BND student loan account to a Upromise account and use your Upromise rewards to transfer savings automatically to help pay down your BND student loans.
4. Keep your BND informed. Immediately notify BND of any change to your name, address, e-mail and telephone number. This will ensure that communication between the borrower and BND will remain uninterrupted.
5. Prepay or pay extra whenever possible. This will lower the overall cost and life of the loan. Adding a little extra to each monthly payment can help.
6. If you are unable to make your monthly student loan payments, contact BND about the many options available to you.

These simple tips will help you save time, money and build a positive credit history.

For more information about student loan repayment, contact Bank of North Dakota at (701) 328-5660.

BND is overseen by the Industrial Commission of North Dakota, consisting of Gov. John Hoeven as chairman, Attorney General Wayne Stenehjem, and Agriculture Commissioner Doug Goehring.

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