Nelnet Bank Snapshot
Nelnet Bank offers both private student loans and student loan refinancing. Nelnet Bank’s student loan refinance offering is best if you are seeking competitive rates, a flexible forbearance policy, and the ability to refinance both private and/or federal student loans, including parent PLUS Loans.
Pros
Competitive interest rates- You can refinance parent PLUS loans in your name
- Offers 12 months of forbearance due to economic hardship or natural disaster
- Cosigner release option after 24 months of timely payments
- Flexible repayment options
Cons
Strict eligibility criteria- No biweekly payment via autopay
- Not accessible to international students or borrowers with student visas
Best Features of Refinancing with Nelnet Bank
Competitive interest rates and zero fees for qualified borrowers
When looking for a student loan, finding a low-interest rate is typically a top priority. If you qualify to refinance your student loans through Nelnet Bank, you’ll have access to competitive interest rates, and won’t have to pay origination fees, application fees, prepayment penalties, late fees, or insufficient funds fees.
You can refinance parent PLUS loans in your name
If your parent has taken out a Parent PLUS loan or a private student loan in their name, Nelnet Bank gives your parent the option to refinance that loan or transfer the loan to your name (so long as you are the primary applicant).
Offers 12 months of forbearance due to economic hardship or natural disaster
While borrowers who refinance their federal student loans with a private lender lose access to federal protections (income-driven repayment, loan forgiveness, and loan forbearance), Nelnet Bank offers up to 12 months of forbearance (a pause on your repayment due to financial hardship, unemployment, or a disability). Although Nelnet Bank handles forbearance on a case-by-case basis, it can be a helpful safety net if you were to fall into financial hardship. If you find yourself in need of forbearance, contact Nelnet Bank directly to check your eligibility.
Cosigner release option after 24 months
If you need a cosigner for your student loan, Nelnet Bank might be a good option for you. Unlike several other lenders, Nelnet Bank allows you to release your cosigner after 24 months of timely payments. This can be helpful if you want to build credit in your own name.
Flexible repayment options
If you qualify for student loan refinancing through Nelnet Bank, you could have access to a variety of repayment terms to match your specific financial situation.
Nelnet Bank offers repayment terms ranging from 5 to 25 years. Before you decide on your repayment plan, be sure to consider the following:
- A 5-year repayment term is generally the cheapest option because it would cause higher monthly payments.
- A 25-year term would be the most expensive because lower monthly payments would be offset by accruing and compounding interest.
- Many borrowers choose a term in between these extremes to balance the burden of monthly dues with interest costs.
The latest rates from Sparrow’s partners
If you want to skip pre-qualification and apply directly with a lender, you can do so by clicking Apply below.
Drawbacks of Refinancing with Nelnet Bank
Strict eligibility criteria
In order to qualify for a private student loan through Nelnet Bank, borrowers must meet the following criteria:
- Be a U.S. citizen or permanent resident and possess a valid U.S. Social Security number
- Have obtained at least a bachelor’s degree
- Meet Nelnet Bank’s annual income criteria (undisclosed)
- Have a credit score of 680 or more, or 640 with a cosigner who has a credit score of 680 or more
- Neither borrower nor cosigner can have previously defaulted on a student loan
- Neither borrower nor cosigner can have filed for bankruptcy in the past 7 years
If you do not meet Nelnet Bank’s criteria for student loan refinancing on your own, you should try applying with a cosigner who does meet the criteria.
If you don’t have access to an eligible cosigner, you may want to look elsewhere to refinancing your student loan.
Don’t meet the eligibility criteria? Complete the Sparrow application to see if you qualify and at what rate with over 15 different lenders. It’s quick, easy, and does not impact your credit score.
No biweekly payment via autopay
When you repay your student loan, your payments are due monthly by default. Instead, some borrowers choose to make biweekly payments via autopay — where you automatically pay half your monthly amount once every two weeks. Many borrowers use biweekly autopay in an effort to pay off their student debt faster and pay less in interest over the lifetime of the loan. It is an effective strategy if you want to “set it and forget it” — essentially allowing you to automatically make payments without having to manually do it at the end of each month.
Unfortunately, when you borrow through Nelnet Bank, you don’t have the option to make biweekly payments via autopay.
Not accessible to international students
Nelnet does not offer student loan refinancing to students who are not U.S. citizens or permanent residents. If you are an international student, check out our partner MPOWER, who offers private student loan refinancing. In addition, Earnest and College Ave offer private student loan refinancing to international students who have a U.S. citizen as a cosigner.
Nelnet Bank Eligibility Criteria, Repayment Options & More
Fees and Terms
Loan Terms
5, 7, 10, 15, or 20 years. 25-year terms available for variable-rate loans. 20 and 25-year terms require $25,000 minimum.
Loan Amounts
$5,000 – $500,000 depending on degree type.
Ability to transfer a parent loan to the student
Yes.
Application or Origination Fee
No.
Prepayment Penalty
No.
Late Fees
Yes. Borrowers may incur a late payment fee of 5% of the portion of the monthly payment that was not paid in full when due, or $25, whichever is less, if the borrower fails to make any part of a payment within 15 days of the due date.
Eligibility Requirements (Financial)
Minimum Credit Score
680 individually or 640 with a qualified cosigner.
Minimum Income
Did not disclose
Typical Credit Score of Approved Borrowers or Cosigners
Did not disclose.
Typical Income of Approved Borrower
Did not disclose.
Maximum Debt-to-Income Ratio
45%.
Ability to qualify if you’ve filed for bankruptcy
Yes, after 7 years.
Eligibility Requirements (Personal)
Citizenship
Borrowers must be U.S. citizens or permanent residents, or apply with a cosigner who is a U.S. citizen or permanent resident.
Location
Available to borrowers in all 50 states.
Must have graduated
Yes.
Must have attended a school authorized to receive federal aid
Yes.
Percentage of borrowers who have a cosigner
Did not disclose.
Repayment Options
Academic Deferment
Yes, borrowers can postpone payment if they return to school.
Military Deferment
Yes
Disability Deferment
Did not disclose.
Forbearance
Yes, hardship and natural disaster forbearance for up to 12 months.
Cosigner Release
Yes (requires 24 months of timely repayments).
Death or Disability Discharge
Yes
Loan discharge if cosigner dies or becomes disabled
No.
Autopay
Allows for surplus payments via autopay: Yes.
Allows for biweekly payments via autopay: No.
Customer Service
Loan Servicer
Firstmark Services.
In-house Customer Service Team
Customer service is run by Firstmark Services.
Process for Escalating Concerns
No. Complaints are handled internally by Nelnet Bank’s customer service team.
Borrowers get assigned a personal customer service representative
No.
Average time from approval to payoff
3 days.
Student loan rates from our partners
Ascent
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 12/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require full
principal and interest payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills, or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs. Rates are effective as of 12/1/2024 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest rates require full
principal and interest payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.
LendKey
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
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.
4 – AutoPay Discount & Lowest Interest Rate
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 APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
1 – Terms and Conditions Apply
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender’s credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered from, a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if you meet the lender’s eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
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.
4 – AutoPay Discount & Lowest Interest Rate
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 APR is only available for loan terms of 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
Earnest
Student Loan Origination (Private Student Loan) Interest Rate Disclosure:
Student Loan Origination (Private Student Loan) Interest Rate Disclosure:
College Ave
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community 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.
(1) All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
(2) As certified by your school and less any other financial aid you might receive. Minimum $1,000.
(3) This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. 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 12/2/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
College Ave Student Loans products are made available through Firstrust Bank, member FDIC, First Citizens Community 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.
(1) All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
(2) As certified by your school and less any other financial aid you might receive. Minimum $1,000.
(3) This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. 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 12/2/2024. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
Nelnet Bank FAQs
Is Nelnet Bank a legitimate lender?
Yes, Nelnet Bank is a legitimate lender. The company offers private student loans to undergraduates, graduate students, and parents, as well as student loan refinancing.
Is Nelnet Bank available in all 50 states?
Yes, Nelnet Bank is available to borrowers in all 50 states.
How long does it take to get a Nelnet Bank refinance loan?
Submitting an application through Nelnet Bank takes a few minutes. Once you’ve submitted your loan application, Nelnet Bank will instantaneously return a decision about your eligibility. If you qualify, you will receive the rate and terms of your loan.
It may take some time to actually receive your loan. You can speed up the process by requesting debt payoff letters from your existing lenders and loan servicers.
What happens if I don’t qualify for a Nelnet Bank refinance loan?
If you don’t qualify for a Nelnet Bank student loan, the company will inform you why. Depending on the reason, you may consider applying with a qualified cosigner or try with a different lender. To check your rates across multiple lenders at once, try using Sparrow’s free search engine. In just two minutes, you can receive real, personalized offers from over 15 different lenders all competing to get you the best rates.
Are Nelnet Bank student loans federal or private?
Nelnet Bank offers private student loans. Before you take out a private student loan, we recommend that you exhaust your federal funding options, including grants and scholarships.
*Note: Nelnet, not Nelnet Bank, services federal student loans.
Does applying for a loan through Nelnet Bank hurt my credit score?
In order to estimate what rate you qualify for, Nelnet Bank conducts a “soft credit check,” which does not affect your credit score. If you choose to accept the Nelnet Bank loan, the company will conduct a hard credit check to verify your information. A hard credit check may temporarily impact your credit score.