Frequently Asked Questions

You should make sure to exhaust lower-cost federal borrowing options before you turn to non-federal student loans like ours.

Checking your rate results in a soft credit pull, which will not affect your credit score. If you continue with your application, Nelnet Bank will request your permission to obtain your full credit report from one or more consumer reporting agencies. This is a hard credit pull and may affect your credit score.

The short answer is – it depends on the type of loan. There are federal student loans that are backed by the U.S. government, and private student loans that are made by private banks.

The longer answer? Federal Direct Loan interest rates are determined each year by the U.S. Congress. Private loan interest rates are set by private lenders (like Nelnet Bank) using a number of factors.

• Nelnet Bank borrowers may receive a lower interest rate on their loan for having a cosigner, which lowers their monthly payment and overall costs.

• It can often be difficult for students and borrowers to meet creditworthiness requirements. A cosigner can help them get the loans they need.

Eligibility Requirements:

• You must be enrolled at least half-time at a Nelnet Bank-eligible school for the loan period you are applying for.

• You or your cosigner must be a U.S. citizen or have permanent residency status and a valid Social Security number.

• A mid to high 600 FICO score is required for you or your cosigner.

• A cosigner isn’t required, but may help you meet credit or qualify for a better rate.

• You must be of the age to enter a binding contract in your state of residence or territory. Applicants may be 16 or 17 years old with a qualified cosigner.

A cosigner is a creditworthy person willing to assume responsibility for loan liabilities if the borrower fails to repay the loan. Applying with a cosigner may help you qualify for a loan and also lower your interest rate. Cosigners must be eligible U.S. citizens or permanent residents.

Cosigners are only required if your application doesn’t meet certain creditworthiness requirements. Adding a cosigner may help you qualify for lower rates.

Undergraduate

• Minimum loan amount: $1,000

• Maximum loan amount: $125,000

Graduate

• Minimum loan amount: $1,000

• Maximum loan amount:

  • Graduate and doctorate: $175,000

  • MBA or graduate law degree: $175,000

  • Graduate health professions degree: $500,000

*Maximum loan amounts are subject to limits on total student loan debt

This depends on what initial repayment option you select while you’re in school. If you choose to make payments while in school, which can be interest only, fixed pay or full principal and interest payments, then your first payment will be due 30-45 days after your first disbursement to your school. We will notify you when the payment will be due. If you choose to defer payments while in school, then your first payment will be due six months after you leave school. Keep in mind that if you defer payments, interest will accrue on your loan and the balance owed will continue to grow until you start making payments.

After your student loan application is submitted, we pull a soft credit report on you and your cosigner to determine creditworthiness. If you and your cosigner meet loan criteria including credit score and credit history, you will qualify for loan offers. After you’ve selected a loan and signed the credit agreement, a hard inquiry will be placed on you and your cosigner's credit – this may impact the credit score for both you and your cosigner.

After you've chosen one of your pre-qualified offers, please be prepared to submit proof of income. If you have a cosigner, you may not need to submit income as we can rely on the income of the cosigner which they will need to submit proof of instead. Once income verification is completed, you will be prompted to sign the credit agreement and then formally accept the loan. From there, we will disburse funds to your school and email instructions on how to access your new Nelnet Bank Student Loan account. That’s it!

You can see a rate in minutes. Once you select a loan, upload documents, and sign your final agreement, you can typically have funds available in 2-3 weeks.

With Nelnet Bank, the fastest option is Immediate Repayment, since you’ll be making a higher payment each month, but paying less in interest over time.

Some of your repayment options include:

• Immediate repayment (you'll be required to make monthly full principal and interest payments as soon as the loan is disbursed).

• Interest-only repayment (you’ll make monthly interest-only payments while in school) and monthly full principal and interest payments after you separate from school.

• Defer principal and interest payments (you won’t be required to make any payments until after you separate from school) but interest will accrue while in deferment.

• Fixed payment ($25 monthly fixed payment amount while in school and monthly full principal and interest after you separate).

You’ll need to contact your student loan servicer or private loan lender to start the deferment process – keep in mind that you’ll still accrue interest while your loans are deferred. If your loan is through Nelnet Bank, you can request deferment in your online account or by contacting us at 800.446.4190 or Loans@NelnetBank.com.

A request for the cosigner to be released can be made by either the borrower or cosigner once conditions of the cosigner agreement have been met. Read the terms of the cosigner agreement here.

There is no typical payment. It all depends on how much you borrow and which repayment option you choose.

No. None. Nada.

With fixed-rate loans, your interest rate stays the same throughout the life of your loan. Variable-rate loans have an interest rate that will rise and fall periodically, depending on several economic factors. Overall, fixed-rate loans give you a more predictable option, whereas variable-rates may cause your payment to change periodically.

Let’s get one thing right out of the way. It is free to apply for a loan with us.

Nope.

You can receive a 0.25% interest rate discount by enrolling in auto debit when you enter repayment. If you cancel auto debit, the 0.25% interest rate reduction will be removed from your loan. Learn more about the auto debit discount and when it applies.

The loan offers you qualify for are determined by your credit information. We’ll present you with any offers you qualify for if you provide us with your basic income, request loan amount, and Social Security number.

If payment is not made within 15 days of the due date, the late fee is 5% of the payment that was not paid in full when due or $25 – whichever is less. If a payment is returned, the fee is $20 and will be charged instead of a late payment fee when both would be assessed during the same billing cycle.

We offer student loan refinancing for undergraduate, graduate, law degrees, and medical degrees. We also offer private student loans for graduate, undergraduate, MBA, law, or advanced health professions degrees.

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Your Nelnet Bank loan is still considered a student loan and you may qualify for tax benefits. Please consult your tax advisor for more information. See Disclaimer.

Parents who refinance their Parent PLUS loan may benefit from lower interest rates or monthly payments with a Nelnet Bank student loan refinance. For those students who may be making payments already and are willing to assume responsibility for a Parent PLUS loan taken out by a parent on their behalf, there are benefits. The new loan releases the parent from responsibility for the loan. Their new loan may also have lower interest rates or monthly payments, so they may save money.

Either a parent or benefitting student can refinance Parent PLUS loans. You'll need a valid U.S. Social Security number, be of the legal age of majority in your permanent state/territory of residency, have an annual income of at least $36,000, have graduated with a Bachelor’s degree or higher, and meet our minimum credit standards. If you don’t meet these requirements, you’ll need a cosigner who does.

Refinancing a Parent PLUS loan combines your Parent PLUS loan (and any other loans the student has) into a brand-new loan – often, with a lower interest rate and/or monthly payment. The new refinanced loan will be in the student’s name, not the parent’s.

Yes. Responsibility for a Parent PLUS loan transfers from the parent to the student when the student agrees to take responsibility for the loan and refinances the parent’s Parent PLUS loan into a new refinance loan in their own name.