Student Loans
Student loans can be an important source of funding for your education, and many types of loans are available.
The biggest difference between student loans and other forms of financial aid is that you're required to repay loans, usually with interest.
Federal Student Loans
Federal Student Loans are loans from the federal government, and all require you to complete the Free Application for Federal Student Aid (FAFSA). You must also be enrolled in at least six credits per semester for undergraduate students and five credits per semester for graduate and professional students.
Federal Subsidized Direct Loan
What is a subsidized loan?
A subsidized loan is available to undergraduate students with demonstrated financial need, as determined by federal regulations.
No interest is accrued while you are in school at least half-time (6 credits), during the grace period and during deferment periods.
Subsidized Loan Eligibility Criteria
- Must file a FAFSA and have official Expected Family Contribution (EFC).
- Must be enrolled in a minimum of 6 semester-based credits as an undergraduate.
- Available to undergraduate students only.
- Interest is paid for by the federal government while the student is in school.
For more information, please visit StudentAid.gov.
Federal Unsubsidized Direct Loan
What is an unsubsidized loan?
An unsubsidized loan can be an alternative source of funding to help pay for your education. It is not based on financial need.
Interest will begin accruing immediately. Interest is charged during all periods, even when you're in school and during grace and deferment periods. Students are strongly encouraged to pay the interest while they are in school, but if they cannot, it's automatically deferred until they graduate.
Unsubsidized Loan Eligibility Criteria
- Must file a FAFSA and have official EFC.
- Low-interest loan made to eligible undergraduate and graduate students.
- Must be enrolled in a minimum of 6 semester-based credits as an undergraduate or a minimum of 5 credits as a graduate or law student.
- Open-enrollment, independent study courses are not eligible for federal financial aid.
For more information, please visit StudentAid.gov.
Federal Direct Parent PLUS Loan
What is a Parent PLUS loan?
Parent PLUS is a federal loan that your parent/guardian applies for in order to help pay your educational costs. This loan is not based on financial need, and a credit check will be required.
Parent PLUS Loan Application
The Parent PLUS loan application allows you to authorize the school to use your loan funds to satisfy other educationally related charges after tuition and fees, and room and board have been paid. You are not required to provide this authorization.
As a parent borrower, the application also allows you to:
- Designate whether the school pays any credit balance to the student or to you.
- Request a deferment while the student is in school.
- Request an additional deferment for 6 months after the student ceases to be enrolled at least half time.
Parent PLUS Loan Eligibility Criteria
- Must file a FAFSA and have official EFC.
- This loan is an alternative funding source for parents who need additional funding to meet the cost of education.
- Parents (natural, adoptive or legal guardians) may borrow up to the cost of education minus other aid for each dependent.
- Parents will need to apply at StudentAid.gov and sign in using their information (including their PIN number).
- Requires a Master Promissory Note.
Federal Direct Graduate PLUS Loan
What is a graduate PLUS loan?
Graduate PLUS is a loan that’s an alternative funding source for graduate, law and medical students who need additional funding to meet the cost of education. Students may borrow up to the cost of their education minus other aid.
Graduate PLUS Loan Application
The Direct PLUS Loan Application allows you to authorize the school to use your loan funds to satisfy other educationally related charges after tuition and fees, and room and board have been paid.
Graduate PLUS Eligibility Criteria
- Must file a FAFSA and have official EFC.
- This loan is an alternative funding source for graduate, law and medical students who need additional funding to meet the cost of education.
- Graduate and professional students may borrow up to the cost of education minus other aid.
- Graduate and professional students can apply at StudentAid.gov.
If you are borrowing a Direct Unsubsidized Loan for the first time, you must:
- Participate in Entrance Loan Counseling.
- Sign a Master Promissory Note.
Federal Nursing Loan
What is a Federal Nursing Loan?
The Federal Nursing Loan is a low interest 5% federal loan available to undergraduate nursing students demonstrating financial need. No interest accrues while the student is enrolled at least half-time.
Nursing students are offered the Federal Nursing Loan as part of their financial aid offer if they qualify.
Federal Nursing Loan Eligibility Criteria
- Must file a FAFSA and have official EFC
- Must demonstrate financial need
- Must be enrolled at least half-time in the nursing program
- Requires completion of a Master Promissory Note (MPN) and other Truth in Lending documents
Master Promissory Note
By signing a Master Promissory Note (MPN), you, the borrower, agree to repay the loans that are guaranteed using the note.
UND participates in the serial process, which means you should only have to complete one MPN for each loan type borrowed (Direct Loan, Perkins Loan, Nursing Loan, etc.). The MPN will remain valid for 10 years unless you file for bankruptcy. If you sign the MPN and then decide not to borrow for 12 months, you will be required to complete a new MPN.
Federal Direct Loan or Direct PLUS/GradPLUS
If you're borrowing one of these loans for the first time, you must complete your MPN on the Direct Loans Master Promissory Note website.
Federal Nursing Loan
If you're borrowing one of these loans for the first time at UND, please complete the online MPN with ECSI.
Private Student Loans
Private student loans are loans that can be used to pay for your educational costs at UND. These nonfederal loans are made by a lender such as a bank, credit union, state agency or school for educational expenses. You apply for these loans, which often require a co-signer.
You should compare different lenders. A quick way to do this is to use the FASTchoice tool to easily compare key aspects of different private loan options. FASTchoice is not a lender and not every institution that offers private loans will appear in FASTchoice.
Emergency Short Term Loan
UND has established funding to assist students by providing money on a short-term basis. Students may apply for a Short Term Loan (STL) from the Office of Student Finance. Short term loans will not be approved to pay a past due balance. Once approved, loan funds will be disbursed on or after the first day of class for the term in which they applied to receive the loan. These funds are repaid to UND One-Stop Student Services and a charge will post to the student's account.
- All STLs are charged a $5.00 processing fee
- Students may only have one outstanding STL at a time
- Student must be able to demonstrate ability to repay
- STLs must be paid back within 30 days
- Students must be registered for the term in which they are applying for an STL
- STL applications must be submitted before the last day of the term
Entrance Loan Counseling
If you accept federal loan(s), you are required to complete an Entrance Loan Counseling session before loan funds are released to you. Click the following to complete counseling for the loan(s) you've accepted:
- Federal Direct Loan Entrance Counseling
- Parent PLUS Loan Entrance Loan Counseling (New regulations require some families to complete.)
Exit Loan Counseling/Loan Repayment
You must complete Exit Loan Counseling:
- If you drop below half-time enrollment
- If you withdraw from UND
- Before the end of your last semester of enrollment at UND
Click the following to complete counseling for the loan(s) you have taken out:
- Subsidized, Unsubsidized, and/or GradPLUS
- Federal Perkins Loan
- Federal Nursing Loan
- Federal TEACH Grant
If you have taken out a Medical Loan at UND, you must contact the Medical School Financial Aid Office directly to complete exit loan counseling.
The Federal Student Aid Ombudsman Office is available to help you informally resolve loan disputes and problems.
Loan Consolidation
Consolidation is the process by which you combine one or more student loans into a new loan. As a result, you'll only have to make one payment per month. Keep in mind that consolidation will likely increase your total cost of borrowing. If you're interested in consolidating loans, you should first contact your student loan lender to request information on loan consolidation programs offered.
Additional information about federal loan consolidation programs can be found with the U.S. Department of Education. If you are unsure of who your loan servicer is, please visit studentaid.gov for assistance.
Federal Loan Consolidation Application
Use the FASTChoice tool to compare consolidation lenders for private student loans.
FASTCHOICE Private LOAN CONSOLIDATION
Defaulted Student Loans
The U.S. Department of Education's Guide to Defaulted Student Loans provides information for borrowers whose federal loans are in default status.