Nelnet is one of the biggest names in the student loan industry, especially since 2018 when it acquired another major loan servicer, Great Lakes Educational Loan Services. The combined company now reportedly handles federal loans for about 5 million people, or 1.5% of the entire U.S. population.
If you’ve found that Nelnet is also your federal student loan servicer, then it’s worth taking a moment to learn about some of the options you have as you tackle repayment. Read on for the full rundown.
- Nelnet student loans: The basics
- 5 Nelnet features you should know about
- Nelnet FAQs
- Nelnet student loans: bottom line
If you’re just beginning to navigate the student loan industry or trying to get a handle on your debt, it’s helpful to understand how that debt is managed. Student loan borrowers collectively owe more than $1.5 trillion in student debt, and the Department of Education works with nine financial companies to service that debt. Nelnet is one of those firms.
As a loan servicer, Nelnet administers the debt by processing payments, generating statements and communicating with borrowers. Nelnet provides these services on behalf of third-party lenders, and it also extends (or “owns”) some student debt itself, as some lenders have sold their student loans to Nelnet.
If Nelnet is your loan servicer, you might already be aware that you can view and manage your account on Nelnet’s website and mobile app. You can also, of course, communicate with the company via phone, online chat and email.
But here are five other things you might not know you can do with your Nelnet student loans.
1. Pay by group
One nice feature about Nelnet is that it’s easy to pay your loans by group. For example, you can opt to pay off your highest-interest loans first if you’re pursuing the debt avalanche strategy for repayment.
If you’ve had trouble figuring out how your payments are distributed, you’ll be happy to find that the process is relatively easy with Nelnet.
If you want to pay extra on a specific group of loans:
- Go to the “Home” page and select the “Make a Payment” tab.
- Then go to “Pay Now,” and under “Select Payment Option,” choose “Pay By Group.”
- Click on the left-handed arrow to expand the box in order to display all of your loans.
You can then sort your loans by interest rate, balance or due date. On the right-hand side, you can divvy up your payments and start putting more toward certain loans, based on your payoff strategy. (Though don’t forget to pay at least the minimum on all your loans.)
2. Autopay or text alerts to avoid late payments
Do you find it difficult to remember when your loan payments are due? One way to ensure you always make on-time payments is by signing up for autopay. Not only will this keep you on track, but — just like with many other servicers and lenders — using autopay could lower your interest rate by 0.25%.
If you’re not comfortable with set-it-and-forget-it automatic payments, however, Nelnet offers text message reminders of when payments are due.. You can also get alerts when your loan payment is past due, when you have a new statement ready for viewing or if your loan status has changed.
To sign up for this, go to “My Info and Preferences” and then find “Text Alerts” on the far right corner. Input your information and save the changes. You will need to confirm via text message that you did sign up for this service.
Nelnet offers a range of convenient ways to access your information and pay your bills, including their mobile app, online bill pay and via phone — though you can still send in payments by mail if you prefer.
3. Get help becoming ‘financially fit’
Not only can you manage your student loan payments on Nelnet’s website, but you can also learn a bit about personal finance.
On the Nelnet homepage, there’s a Get Financially Fit section where you can learn about building and maintaining credit, avoiding identity theft and the basics of personal finance and budgeting.
If you need assistance or have questions, you can contact Nelnet account specialists via online chat, by phone at 1-888-486-4722 or email. Nelnet’s Facebook and Twitter pages also have helpful tips for managing both your student loans and improving your financial health.
4. Apply for deferment or forbearance
If you’re having trouble making payments on your federal student loans, you can apply for deferment or forbearance through the Nelnet site. These options allow you to postpone your loan repayment for certain situations, ranging from job loss and other hardships to going back to school or serving in the military.
The eligibility requirements and terms vary, but deferment options may include unemployment deferment, working mother deferment, parental leave deferment and domestic volunteer deferment. Note, however, that your loans will continue to accrue interest, even as you pause repayment.
To find out if you qualify for deferment or forbearance, you can get started by logging into your account and clicking “Postpone My Payment” to apply. You can also call Nelnet at 1-888-486-4722 for more information..
5. Print your tax info
A common mistake people make is not deducting student loan interest on their taxes. You can deduct up to $2,500 in student loan interest on your taxes each year that you are repaying your student loans.
But where do you even get that paperwork? Using Nelnet, you can find the information in your “Message Center” under “Print My Tax Info.”
You can then print out IRS form 1098-E, which shows how much you paid in student loan interest. If you paid more than $2,500, however, you can still only deduct up to $2,500.
Finally, here are some frequently asked questions about Nelnet and its loan-servicing operations.
Is Nelnet good for student loans?
As one of the largest student loan servicers in the industry, Nelnet definitely gets its share of complaints registered with the Consumer Finance Protection Bureau. And like many other servicers, Nelnet has also been the subject of borrower lawsuits, including loan forgiveness.
That said, however, Nelnet enjoys a better reputation than some rival servicers.
And while we’re on the subject, note that the servicers aren’t the only source of trouble for borrowers — student loan scams are a constant danger for anyone with school debt. Be wary about anything that sounds too good to be true, and if you receive a suspicious offer, file a complaint online or by calling 1-855- 411-2372. You can also contact the office of your state’s attorney general.
Can Nelnet student loans be forgiven?
As a loan servicer, Nelnet administers loans of lenders, and therefore it isn’t able to forgive your loans. However, under government guidelines, some borrowers may qualify for federal student loan forgiveness, such as working for the government or a nonprofit. Check out some of your forgiveness options here.
Does Nelnet consolidate student loans?
The Department of Education allows borrowers to consolidate multiple federal student loans into one loan via the direct consolidation loan program and choose their servicer. Nelnet doesn’t consolidate your loans per se, but it is one of the eligible servicers that can administer your newly consolidated loan.
Is Nelnet a direct student loan program?
As described above, Nelnet offers several different types of service: It loans money directly to students and acts as the servicer for those accounts, services some federal loans from the Department of Education and it also provides customer services for third-party lenders. In some instances, lenders have sold their outstanding loans to Nelnet, and in which case the company both owns and services those accounts.
As you work to manage your finances and juggle your student loan payments, it’s helpful to have a strong student loan servicer in your corner. Nelnet offers the latest in online, mobile, text and phone customer service to support its borrowers; its website offers resources and information to better manage debt and improve your personal finances.
At the same time, the complaints referenced in this article show that Nelnet, like other servicers, isn’t perfect, so be sure to speak up if you think they’ve dropped the ball.
Alli Romano contributed to this report.
Interested in refinancing student loans?Here are the top 8 lenders of 2020!
|Lender||Variable APR||Eligible Degrees|
|Check out the testimonials and our in-depth reviews!
1 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.20% APR (with Auto Pay) to 6.99% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 6.89% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of December 13, 2019, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 12/13/2019. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at email@example.com, or call 888-601-2801 for more information on our student loan refinance product.
© 2018 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
2 Important Disclosures for SoFi.
3 Important Disclosures for Figure.
Figure’s Student Refinance Loan is a private loan. If you refinance federal loans, you forfeit certain flexible repayment options associated with those loans. If you expect to incur financial hardship that would impact your ability to repay, you should consider federal consolidation alternatives.
4 Important Disclosures for College Ave.
College Ave Disclosures
College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1College Ave Refi Education loans are not currently available to residents of Maine.
2All rates shown include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
3$5,000 is the minimum requirement to refinance. The maximum loan amount is $300,000 for those with medical, dental, pharmacy or veterinary doctorate degrees, and $150,000 for all other undergraduate or graduate degrees.
4This informational repayment example uses typical loan terms for a refi borrower with a Full Principal & Interest Repayment and a 10-year repayment term, has a $40,000 loan and a 5.5% Annual Percentage Rate (“APR”): 120 monthly payments of $434.11 while in the repayment period, for a total amount of payments of $52,092.61. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 1/1/2020. Variable interest rates may increase after consummation.
5 Important Disclosures for Laurel Road.
Laurel Road Disclosures
Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. Mortgage lending is not offered in Puerto Rico. All loans are provided by KeyBank National Association.
ANNUAL PERCENTAGE RATE (“APR”)
There are no origination fees or prepayment penalties associated with the loan. Lender may assess a late fee if any part of a payment is not received within 15 days of the payment due date. Any late fee assessed shall not exceed 5% of the late payment or $28, whichever is less. A borrower may be charged $20 for any payment (including a check or an electronic payment) that is returned unpaid due to non-sufficient funds (NSF) or a closed account.
For bachelor’s degrees and higher, up to 100% of outstanding private and federal student loans (minimum $5,000) are eligible for refinancing. If you are refinancing greater than $300,000 in student loan debt, Lender may refinance the loans into 2 or more new loans.
ELIGIBILITY & ELIGIBLE LOANS
Borrower, and Co-signer if applicable, must be a U.S. Citizen or Permanent Resident with a valid I-551 card (which must show a minimum of 10 years between “Resident Since” date and “Card Expires” date or has no expiration date); state that they are of at least borrowing age in the state of residence at the time of application; and meet Lender underwriting criteria (including, for example, employment, debt-to-income, disposable income, and credit history requirements).
Graduates may refinance any unsubsidized or subsidized Federal or private student loan that was used exclusively for qualified higher education expenses (as defined in 26 USC Section 221) at an accredited U.S. undergraduate or graduate school. Any federal loans refinanced with Lender are private loans and do not have the same repayment options that federal loan program offers such as Income Based Repayment or Income Contingent Repayment.
All loans must be in grace or repayment status and cannot be in default. Borrower must have graduated or be enrolled in good standing in the final term preceding graduation from an accredited Title IV U.S. school and must be employed, or have an eligible offer of employment. Parents looking to refinance loans taken out on behalf of a child should refer to https://www.laurelroad.com/refinance-student-loans/refinance-parent-plus-loans/ for applicable terms and conditions.
For Associates Degrees: Only associates degrees earned in one of the following are eligible for refinancing: Cardiovascular Technologist (CVT); Dental Hygiene; Diagnostic Medical Sonography; EMT/Paramedics; Nuclear Technician; Nursing; Occupational Therapy Assistant; Pharmacy Technician; Physical Therapy Assistant; Radiation Therapy; Radiologic/MRI Technologist; Respiratory Therapy; or Surgical Technologist. To refinance an Associates degree, a borrower must also either be currently enrolled and in the final term of an associate degree program at a Title IV eligible school with an offer of employment in the same field in which they will receive an eligible associate degree OR have graduated from a school that is Title IV eligible with an eligible associate and have been employed, for a minimum of 12 months, in the same field of study of the associate degree earned.
The interest rate you are offered will depend on your credit profile, income, and total debt payments as well as your choice of fixed or variable and choice of term. For applicants who are currently medical or dental residents, your rate offer may also vary depending on whether you have secured employment for after residency.
The repayment of any refinanced student loan will commence (1) immediately after disbursement by us, or (2) after any grace or in-school deferment period, existing prior to refinancing and/or consolidation with us, has expired.
POSTPONING OR REDUCING PAYMENTS
After loan disbursement, if a borrower documents a qualifying economic hardship, we may agree in our discretion to allow for full or partial forbearance of payments for one or more 3-month time periods (not to exceed 12 months in the aggregate during the term of your loan), provided that we receive acceptable documentation (including updating documentation) of the nature and expected duration of the borrower’s economic hardship.
We may agree under certain circumstances to allow a borrower to make $100/month payments for a period of time immediately after loan disbursement if the borrower is employed full-time as an intern, resident, or similar postgraduate trainee at the time of loan disbursement. These payments may not be enough to cover all of the interest that accrues on the loan. Unpaid accrued interest will be added to your loan and monthly payments of principal and interest will begin when the post-graduate training program ends.
We may agree under certain circumstances to allow postponement (deferral) of monthly payments of principal and interest for a period of time immediately following loan disbursement (not to exceed 6 months after the borrower’s graduation with an eligible degree), if the borrower is an eligible student in the borrower’s final term at the time of loan disbursement or graduated less than 6 months before loan disbursement, and has accepted an offer of (or has already begun) full-time employment.
If Lender agrees (in its sole discretion) to postpone or reduce any monthly payment(s) for a period of time, interest on the loan will continue to accrue for each day principal is owed. Although the borrower might not be required to make payments during such a period, the borrower may continue to make payments during such a period. Making payments, or paying some of the interest, will reduce the total amount that will be required to be paid over the life of the loan. Interest not paid during any period when Lender has agreed to postpone or reduce any monthly payment will be added to the principal balance through capitalization (compounding) at the end of such a period, one month before the borrower is required to resume making regular monthly payments.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of November 8, 2019 and is subject to change.
6 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Terms and Conditions apply. Splash reserves the right to modify or discontinue products and benefits at any time without notice. Rates and terms are also subject to change at any time without notice. Offers are subject to credit approval. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet applicable underwriting requirements. Not all borrowers receive the lowest rate. Lowest rates are reserved for the highest qualified borrowers.
7 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 1.76% effective November 10, 2019.
8 Important Disclosures for LendKey.
Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution.
Subject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised variable APR is only available for loan terms of 5 years and is reserved for applicants with FICO scores of at least 810.
As of 12/019/2019 student loan refinancing rates range from 1.90% to 8.59% Variable APR with AutoPay and 3.49% to 7.75% Fixed APR with AutoPay.
|1.99% – 6.89%1||Undergrad & Graduate|
|2.31% – 7.36%2||Undergrad & Graduate|
|2.06% – 6.81%3||Undergrad & Graduate|
|2.62% – 6.12%4||Undergrad & Graduate|
|2.29% – 6.65%5||Undergrad & Graduate|
|1.99% – 7.06%6||Undergrad & Graduate|
|1.81% – 6.29%7||Undergrad & Graduate|
|1.90% – 8.59%8||Undergrad & Graduate|