North Dakota student loan borrowers owe an average of $ 29,246 in federal and private debt, 20% less than the U.S. average of $ 36,689. About 100,000 North Dakota residents have student loan debt and their monthly payment is on average $ 212.
Even though North Dakota offers its state grant program for undergraduates, as well as several scholarship programs and tuition waivers, some students will still need to borrow to cover college funding gaps. Here’s what you need to know about North Dakota student loans.
North Dakota student loans: borrowers owe an average of $ 29,246 in private federal debt
North Dakota student loan borrowers owe an average of $ 29,246, including private and federal loans student loan debt. It is the second lowest among the 50 states.
| Overview of North Dakota Student Debt | |
|---|---|
| The equilibrium mean | $ 29,246 |
| Total outstanding debt | $ 3.2 billion |
| Number of borrowers | 0.1 million |
| Average total monthly payment | $ 212 |
| Note: Averages include federal and private student debt. | |
On average, students in North Dakota owe less than their peers in every other state except Nebraska ($ 28,684). In comparison, students in neighboring states (Minnesota, Montana, and South Dakota) owe an average of $ 30,811 upon completion of their undergraduate education.
Here is the average student loan debt across the 50 states, as well as the District of Columbia, to better understand how North Dakota stacks up:
5 things to know about going to college in North Dakota
- All high school students in North Dakota are eligible for the state grant program: The North Dakota State Grants Program offers up to $ 1,100 per semester or $ 733 per term, depending on the school and the student’s enrollment status. Recipients must meet high school and residential graduation requirements.
- North Dakota offers a variety of scholarships: In addition to the state grant program, North Dakota offers scholarships to students pursuing a university education, as well as those attending vocational and technical schools. There is also the ND Scholars Program, which pays full tuition fees for top performing students, as well as the ND Indian Scholarship, which helps students with Native American heritage.
- Tuition and fee waivers are available for certain groups: North Dakota offers tuition and fee waivers to specific groups, including law enforcement officers, members of the National Guard, the elderly, and children whose parents were prisoners of war. or fulfill other requirements related to military service.
- The Free Federal Student Aid Application (FAFSA) is required for the state grants program: To gain access to the state grant program, students will be required to complete the FAFSA annually. Applying early is important as public funds may be limited and are offered on a first come, first served basis.
- Other programs may require additional applications: You may need an additional application to be eligible for scholarships and waivers. You will need to contact your campus to determine your eligibility and apply.
Loan Repayment Programs for North Dakota Residents
When repaying North Dakota student loans, federal programs offer repayment options. In 2019, some states student loan forgiveness programs, including the teacher shortage forgiveness program for teachers, were terminated by the state legislature. However, in the same year, the legislature allocated funds to expand the ND Career Builders Scholarship and Loan Repayment Program for people in “emerging and high need professions.”
National health service body
The Federal Administration of Resources and Health Services offers loan repayment through National health service body jobs. If you are a qualified health professional and work for at least two years in an area of ​​health care shortage, you could receive up to $ 50,000 in loan repayment assistance depending on your profession and the duration of your work.
ND Career Builders Bursary and Reimbursement Program
Graduates who complete a diploma or certificate program in a high demand career field can apply for their loan repayment under the ND Career Builders Scholarship and Reimbursement program. Graduates can receive up to $ 5,667 per year (to a maximum of $ 17,000) for student loans, including federal and private loans. However, applications must be submitted jointly by the graduate and his or her employer, and private matching funds must be available.
Public Service Loan Discount (PSLF)
PSLF is available to those who work for a qualifying nonprofit or government organization. After you have made 120 qualifying payments while working for your employer, you can apply for the repayment of your federal direct student loan balance. This program works in conjunction with the income-based repayment.
Teacher loan waiver
The federal government offers the Teacher loan waiver program, which can write off up to $ 5,000 or $ 17,500 in federal student loan debt if you teach in a low-income community for at least five years (the amount will depend on the subject taught). The Ministry of Education publishes a list of eligible fields every year.
North Dakota federal student loan borrowers under 25 owe less than national average – plus a snapshot of payment status
How To Refinance North Dakota Student Loans
In North Dakota, 4.3% of borrowers owe $ 100,000 or more in federal student loans. For those who owe such large amounts, refinancing a student loan can be beneficial, especially if they do not qualify for a loan forgiveness program.
Understand, however, that refinancing federal student loans makes them private, which means you will lose access to federal programs, including the PSLF and income-based repayment. Although some private lenders offer hardship programs, they are likely to have different requirements than federal programs and may not be as robust.
If you have both federal and private loans, you can choose to refinance your private student loans and consolidate federal loans. This allows you to simplify your situation while retaining the benefits on your federal student loans.
Carefully consider your options and your financial situation to determine the best way to manage your student loans in North Dakota.
Sources
- US Department of Education data as of June 30, 2020
- Anonymized credit reports My LendingTree June 2020
- Federal Reserve Bank of New York / Equifax Consumer Credit Panel as of June 2020
- mappingstudentdebt.org
Since this latest data is from 2015, the researchers estimated the increase in student loan debt per borrower in the state using state-wide data from anonymized credit reports.
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