Paying for College / Debt Relief, Life & Career

Nelnet Bank Directs Borrowers in Need to Resources about COVID-19 and Student Loans

The Coronavirus Aid, Relief, and Economic Security (CARES) Act was designed to help ease stress caused by COVID-19 on everyone, including college students and those in the process of repaying their federally owned student loans. That doesn’t mean there’s no stress in navigating what it all means or where to go for help if you need it.

The U.S. Department of Education Office of Federal Student Aid provides answers to your questions about federal student loans on and is your best resource. We answer a couple of questions here that we hope may help you.

Why am I not eligible for a 0% interest rate?

Your loans with Nelnet Bank are private student loans, so they are not eligible for the COVID-19 relief. The CARES Act provides temporary student loan relief for student loans held by the U.S. Department of Education. Private student loans aren’t subject to the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

What If I’ve Been Furloughed, or I’ve Lost My Job?

First, if you have federally held student loans, there are temporary student loan relief programs – automatic administrative forbearance and 0% interest – applied to those loans. Your federal loan payments are basically paused during this time, offering you relief on those loans while you get your bearings. For these federal loans, interest won’t accrue, and you won’t be required to make payments, until the payment pause is lifted. ( provides all your answers to questions about this.)

The next step you take should be to contact your loan servicer for your federal student loans, and let them know you’ve lost your job. You’ll want to learn about different payment plans that may make it possible for you to stay current on your loans if you still are unemployed when the temporary forbearance is lifted. Contacting your loan servicer with questions or for help discussing your options is a good idea.

Nelnet Bank does not provide legal, investment, tax, or financial advice. This page and the information contained herein is for informational purposes only. This content is not meant to address the circumstances of any particular individual. Nothing contained in this article constitutes a recommendation or endorsement by Nelnet Bank. For specific advice about your unique circumstances, consult with a qualified professional.

From time to time, articles may provide hyperlinks to web pages operated by third parties. When you click on these hyperlinks, you will be leaving Nelnet Bank’s website. Nelnet Bank has no control over such sites or their content, and is not responsible or liable for any such site or content. Nelnet Bank does not endorse or recommend the contents of the third-party sites. Your use of a third party website is subject to their terms of use and privacy policy.

Have Questions?

We're always here to help and answer questions.

Discover more from the Learning Center

Get all the insights you need as you navigate your path through college and beyond. The following topics cover the most critical topics when it comes to student loans.