The Higher Education Funding Review Committee of the North Dakota Legislature convened on August 27, 2025, to discuss the current state and future direction of the state's student loan programs. The meeting highlighted the historical context of the Bank of North Dakota's (BND) involvement in student loans, which began in 1967 with the first federally insured student loan in the nation.

The committee learned that BND has refocused its student loan program to prioritize in-state loans, aiming to support students attending North Dakota institutions. As of now, the loan portfolio stands at approximately $980 million, serving around 37,500 borrowers and an additional 26,000 cosigners. The average loan balance per borrower is reported to be just under $12,000, with a significant majority of borrowers currently in repayment.

Jennifer Bickel, the education market manager at BND, presented data indicating a low delinquency rate of just under 4%, significantly lower than the national average of 10.2%. This positive trend is attributed to effective customer service and counseling provided to borrowers facing financial hardships. BND has also implemented programs to encourage recurring payments, which offer borrowers a reduced interest rate.

The committee discussed the implications of rising education costs on student borrowing trends, noting that students are increasingly borrowing more to cover expenses. BND officials emphasized their commitment to ensuring that students maximize scholarships and grants before resorting to loans, positioning their program as a gap filler in the financial aid landscape.

In addition to student loans, the meeting touched on BND's dual credit program, which has supported approximately 2,400 students over the past five years, and the "Smart With My Money" initiative aimed at improving financial literacy across the state. The committee also reviewed the performance of the 529 college savings plan, which has seen increased contributions from North Dakota residents.

Looking ahead, BND anticipates a potential decrease in its loan portfolio as it continues to focus on in-state lending. The committee's discussions underscored the importance of adapting to changing economic conditions and the ongoing need for accessible financing options for North Dakota students.