The Bank of North Dakota announced Thursday it will waive a 4% administrative fee on Dakota Education Alternative Loans disbursed after Jan. 1.
The 4% fee, which is withheld when the loan is taken out, goes to a guarantee agency, which uses the funds to pay for loans in the event a borrower dies or defaults. Starting Jan. 1, the bank will pay the fee, a common move for student lenders as of late.
The Bismarck-based bank will, among other changes, also allow co-signers to be released from the loan if that borrower pays on time for two years.
This is good news for students. And a good first step for reducing the debt burden students are saddled with.