How to Consolidate LoansConsolidating loans
President Eric Hardmeyer said the DEAL One Loan Programme - considered the first of its kind in the country - will allow debtors to potentially lower their interest rate, prolong the amortization of their loans and receive lower recurring repayments while negotiating with a one-stop-shop. "He said that we think this is a really good programme, which will help many North Dakotans," he said, stating that some 50,000 North Dakotans could be considered for the programme.
Hard-meyer said that many folks struggle with high loan repayments, with interest Rates on many personal loans at 9 to 12 per cent. This new DEAL programme provides a 1.73 per cent floating interest per annum until 30 June or a 5.34 per cent floating APR. Installment growth is limited to no more than 1 per cent per annum, and the installment cannot surpass 10 per cent under the programme.
"Hardmeyer said, "We think this will offer some degree of security. In contrast to the bank's DEAL consolidation loans programme, the new programme enables the government to consolidate study loans with personal loans. There is no dilution charge and redemption conditions differ according to the amount of the loans with a maturity of up to 25 years.
As authorised by state legislators last year, the bench was offering the programme to doctors and others in the health care community in towns of 4,500 or less as a way to make sure it could house the possible rise in loans, Hardmeyer said, adding that he is convinced that the bench will be able to manage the burden.
Jack Dalrymple, president of the three-member industry commission that supervises the Bank of North Dakota, described it as "the lacking piece" in the students' assistance programme. Said he that the state's needs-based and performance-based fellowship schemes have been growing, "but we still have the old credit issue, many of them with awkward interest rates. However, we still have the problems of the old loans.
Well, it's a good deal." Mr Hardmeyer noted that the programme may not be suitable for everyone, as government loans still provide some functions that the government programme does not, namely income-based redemption schemes and default option schemes. North Dakota Bank will publish the programme through advertisements in newspapers, collegiate Alumni Foundation and the Department of Commerce, as well as through community banking and community service, said Janel Schmitz, spokesperson.
"We' gonna take it hard," Hardmeyer said. For more information on the programme, see banknd.nd.gov.