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.
Fixed APR Range: 7.12% to 11.19%*
Variable APR Range: 7.60% to 14.50%*
Loan Amounts: $5,000 to $225,000
Minimum Credit Score: 640
| Best Features | Drawbacks |
| • 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 | • Strict eligibility criteria • No biweekly payment via autopay • Not accessible to international students or borrowers with student visas |
What’s Inside
- Interest Rates, Fees, and Terms
- Eligibility Requirements – Financial
- Eligibility Requirements – Personal
- Repayment Options
- Customer Service
- FAQ
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.
| Fixed APR* | 7.12% to 11.19%* |
| Variable APR* | 7.60% to 14.50%* |
*Rates as of November 01, 2023. Rates listed have an autopay discount only on the lower boundary, not the upper boundary.
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.
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 Refinancing: The Nuts and Bolts
Interest Rates, Fees, and Terms
| Fixed APR Range | 7.12% to 11.19%* |
| Variable APR Range | 7.60% to 14.50%* |
| 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 (see disclosure below) |
| 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. |
Before you take out a loan from Nelnet Bank…
Complete the Sparrow application to compare real rates from more than 15 different lenders to make sure you’re getting the best rate possible.
See real rates, not rate ranges or estimates: Sparrow’s rates mimic those of our lenders so you know what rate you’re getting from each lender.
No impact on your credit score: Checking your rates on Sparrow won’t impact your credit score.
Data Privacy: Sparrow doesn’t sell your information, so don’t worry about getting calls from that random number that won’t leave you alone.
FAQ
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.
*Rates listed have an autopay discount only on the lower boundary.