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 Direct Student Loans

Federal Direct 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.

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.

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.

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.

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.

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.

FASTchoice

Emergency Short-Term Loan

UND has established loan funds to assist students by providing money on a short-term basis. You may apply for a Short Term Loan from the Office of Student Finance. Generally, they are to be paid back within 30 days. A $5 processing fee is assessed to all Short Term Loans. Students cannot have more than one short-term loan out at a time. These loans are repayable at UND One-Stop Student Services.

Short Term Loan Request Form

Entrance Loan Counseling

If you accept federal loan(s), you're 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 when you:

Drop below half-time enrollment
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:

If you've borrowed 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.

For additional information about federal loan consolidation programs:

For additional information about private student loan consolidation programs:

If you can't remember who your lender or loan holder is, the Loan Locator or the National Student Loan Data System (NSLDS) may be able to help.

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.