The category is “What to know about paying for college”

The category “What to know about paying for college” may not appear on your favorite game show, but for students and their parents, the following are important facts to know. How would you score in this round?

Clue: This is the first step in determining if you qualify for federal grants and student loans.

Answer: What is the FAFSA (Free Application for Federal Student Aid).

Determining if you qualify for federal grants and student loans begins with completing the FAFSA. When completing this free form, you can submit up to 10 colleges you may be interested in attending. The colleges will compare their costs of attendance with your financial resources, and then you’ll receive an award letter from each institution regarding your financial aid package. This is not a commitment on your part to attend the college.

Clue: There are different types of student loans. These are the first types you should take out.

Answer: What are Federal Direct student loans. 

A student’s award letter will outline if a student is eligible to receive federal student loans. Federal student loans may offer lower interest rates as well as some forgiveness and repayment features not available with other types of student loans. Bank of North Dakota (BND) recommends students take out Federal Direct Loans first. The Federal PLUS Loan may have higher interest rates than BND’s DEAL Student Loan.

Clue: This is available through the Bank of North Dakota if your savings, scholarships, grants and federal student loans don’t cover the entire cost of college.

Answer: What is a DEAL Student Loan

If you still have a funding gap after adding up savings, scholarships, grants and federal student loans to pay for college, the DEAL Student Loan from Bank of North Dakota is a smart option to explore. This loan is for North Dakota residents who attend an accredited university in or out of state. Fixed and variable rate options are offered with zero fees. Out-of-state residents attending a North Dakota college can also take advantage of these great terms.

Clue: When you graduate from college, your student loan payments should not exceed this percentage of your gross income.   

Answer: What is 8-10 percent.

How much in student loans is too much? You will want to keep your total student loan amount low enough, so payments don’t exceed 8-10 percent of your gross income when you graduate college. Take time to investigate what you can expect for a salary with your degree and use a debt calculator to help you determine the final number.

You may also like

BND goes live
That’s right. BND goes live every Tuesday at 4 p.m. on Facebook Live to discuss a variety of higher education topics. We’ll provide important info…
Read more
Cosigning private student loans video
In a school play, an understudy learns the lines and choreography of another actor’s role. The show must go on, and if the actor is unable to play t…
Read more
DEAL Student Loans video
Choosing how to pay for college is like standing in the school lunch line, you have a variety of options. When scholarships, grants, work-study, savin…
Read more
Federal Direct Loan and Federal Direct PLUS Loan video
In the school lunch line, you choose either hot lunch or cold lunch. When paying for college with student loans, you need to choose which student loan…
Read more
Sep
7
Thu
all-day $500 BND Real DEAL scholarships ...
$500 BND Real DEAL scholarships ...
Sep 7 all-day
High school seniors fill out an application for a chance to win one of 48 $500 BND Real DEAL scholarships today. The first 1,000 applicants receive a Real DEAL T-shirt. Scholarship requirements, guidelines and general[...]
Oct
5
Thu
all-day $500 BND Real DEAL scholarships ...
$500 BND Real DEAL scholarships ...
Oct 5 all-day
High school seniors fill out an application for a chance to win one of 48 $500 BND Real DEAL scholarships today. The first 1,000 applicants receive a Real DEAL T-shirt. Scholarship requirements, guidelines and general[...]
Oct
14
Sat
all-day HS Seniors: Schedule Senior pict...
HS Seniors: Schedule Senior pict...
Oct 14 all-day
Schedule your senior pictures if they aren’t done yet!
Nov
9
Thu
all-day $500 BND Real DEAL scholarships ...
$500 BND Real DEAL scholarships ...
Nov 9 all-day
High school seniors fill out an application for a chance to win one of 48 $500 BND Real DEAL scholarships today. The first 1,000 applicants receive a Real DEAL T-shirt. Scholarship requirements, guidelines and general[...]
Dec
7
Thu
all-day $500 BND Real DEAL scholarships ...
$500 BND Real DEAL scholarships ...
Dec 7 all-day
High school seniors fill out an application for a chance to win one of 48 $500 BND Real DEAL scholarships today. The first 1,000 applicants receive a Real DEAL T-shirt. Scholarship requirements, guidelines and general[...]
Jan
1
Mon
all-day ND Dollars for Scholars scholars...
ND Dollars for Scholars scholars...
Jan 1 all-day
Students, you are invited to apply for scholarships between January 1 and April 1 each year. Scholarship awards range from $500 to $15,000. Visit the News & Events section to see which scholarships may help[...]
Jan
4
Thu
all-day $500 BND Real DEAL scholarships ...
$500 BND Real DEAL scholarships ...
Jan 4 all-day
High school seniors fill out an application for a chance to win one of 48 $500 BND Real DEAL scholarships today. The first 1,000 applicants receive a Real DEAL T-shirt. Scholarship requirements, guidelines and general[...]
Jan
7
Sun
all-day HS Seniors: Completed tax inform...
HS Seniors: Completed tax inform...
Jan 7 all-day
Try to get taxes done as early as possible so you can complete the FAFSA. For more information on preparing for the FAFSA visit, BND’s College Planning Center.
Feb
3
Sat
all-day HS Seniors: Prepare your invitat...
HS Seniors: Prepare your invitat...
Feb 3 all-day
Work on the invitation list for the graduation party. Some families coordinate their parties to share location and expenses.
Feb
28
Wed
all-day Deadline reminder: $500 BND Real...
Deadline reminder: $500 BND Real...
Feb 28 all-day
High school seniors February 28, 2015 (today) is the deadline to fill out an application for a chance to win one of 48 $500 BND Real DEAL scholarships. Scholarship requirements, guidelines and general information are[...]