Nelnet Bank Snapshot
Nelnet Bank offers both private student loans and student loan refinancing. Nelnet Bank’s student loan offering is available to undergraduate, graduate, MBA, law, and health professional students. It’s best if you are seeking competitive rates, a variety of repayment terms, and a flexible forbearance policy.
Fixed APR Range: 4.49% to 15.47%*
Variable APR Range: 6.29% to 15.51%*
Loan Amounts: $1,000 with an aggregate loan limit of $125,000 for undergraduates; $1,000 with an aggregate limit of $500,000 for graduate students
Minimum Credit Score: 680 individually, 640 with a qualified cosigner
| Best Features | Drawbacks |
| • Competitive interest rates • Variety of repayment plans • Offers a six-month grace period • Allows up to 12 months of forbearance | • 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 Nelnet Bank Student Loans
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 for a Nelnet Bank student loan, 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.
| Undergraduate, Graduate, MBA, Law, and Health Professional Students | |
| Fixed APR* | 4.49% to 15.47%* |
| Variable APR* | 6.29% to 15.51%* |
Variety of repayment options
While still in school, Nelnet Bank offers you three repayment options for your student loans, with terms ranging from 5 – 15 years. If possible, it’s beneficial to make in-school loan payments in order to reduce the amount of interest you pay over time.
| Repayment Option | Terms | Pros | Cons |
| Immediate Repayment | Make full payments as soon as the loan is disbursed, while you’re still in school. | You will minimize the interest you pay, resulting in the greatest savings. Because you’re paying down both interest and principal while you’re still in school, you’ll already have made a good start on repaying your loan by the time you graduate. | For many students, it’s not realistic to make full monthly payments while still enrolled in college. |
| Interest-Only Repayment | Pay only interest while you’re in school. | Your monthly payments will be more manageable, and your loan balance won’t grow while you’re in school. | You won’t make any progress paying down your loan balance while you’re a student. But at least you won’t owe more than you borrowed when it’s time to start making full payments. |
| Deferred Repayment | Don’t make any payments while you’re in school for up to 78 months. Begin repayment after graduation or 6 months after graduation. | You won’t have to make payments while you’re in school. | You will likely pay the highest overall cost since unpaid interest will be added to your principal amount at the end of your grace period. |
Offers a six-month grace period
Similar to federal student loans, Nelnet Bank offers a six-month grace period before you are required to begin making full principal and interest monthly payments. The grace period is available if you are no longer in school at least halftime – because you’ve graduated, left school, or dropped below half-time enrollment.
Allows up to 12 months of forbearance due to economic hardship or natural disaster
Nelnet Bank offers up to 12 months of forbearance (a pause on your repayment due to financial hardship, unemployment, or a disability). Nelnet Bank’s forbearance is offered in increments of two or three months, with a maximum of 12 months available over the life of the loan.
While 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.
Drawbacks of Nelnet Bank Student Loans
Strict eligibility criteria
In order to qualify for a private student loan through Nelnet Bank, borrowers must meet the following criteria:
- U.S. citizenship or permanent residency status and possession of a valid U.S. Social Security number. Nelnet Bank Student Loans are currently available in all U.S.
- At least half-time enrollment at a Nelnet Bank eligible school for the loan period in question.
- Have a credit score of 680 or more, or 640 with a qualified cosigner
- Neither borrower nor cosigner can have previously defaulted on a student loan
- Neither borrower nor cosigner can have filed for bankruptcy in the past seven years
If you do not meet Nelnet Bank’s criteria for a student loan, 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 for your private student loan
Don’t meet Nelnet Bank’s 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.
Unfortunately, when you borrow through Nelnet Bank, you don’t have the option to make biweekly payments via autopay.
You do, however, have the option to make greater-than-minimum payments via autopay. This means you have the option to pay more than your monthly balance in order to reduce the interest that accrues over time. With Nelnet Bank, you can set this up automatically so that the desired monthly payment is drawn from your bank account at the end of each month.
Not accessible to international students
Nelnet Bank does not offer loans to students who are not U.S. citizens or permanent residents. If you are an international student, check out MPOWER and Prodigy Finance both of which offer private student loans to international students. In addition, Earnest, College Ave, and Ascent all offer private student loans to international students who have a U.S. citizen as a cosigner.
Nelnet Bank: The Nuts and Bolts
Interest Rates, Fees, and Terms
| Fixed APR Range | 4.49% to 15.47%* |
| Variable APR Range | 6.29% to 15.51%* |
| Loan Terms | 5, 10, or 15 years. |
| Loan Amounts | $1,000 with an aggregate loan limit of $125,000 for undergraduates; $1,000 with an aggregate limit of $500,000 for graduate students. |
| Application or Origination Fee | No. |
| Prepayment Penalty | No. |
| Late Fees | Yes (If payment is not made within 15 days of the due date, the late fee is either 5% of the unpaid amount of the monthly payment or $10, whichever is less). |
Eligibility Requirements – Financial
| Minimum Credit Score | 680 individually, or 640 with a qualified cosigner. |
| Minimum Income | N/A. |
| Typical Credit Score of Approved Borrowers or Cosigners | Did not disclose. |
| Typical Income of Approved Borrower | Did not disclose. |
| Maximum Debt-to-Income Ratio | Did not disclose. |
| Ability to qualify if you’ve filed for bankruptcy | Yes, after 7 years. |
Eligibility Requirements – Personal
| Citizenship | Borrowers must be U.S. citizens. |
| Location | Available to borrowers in all 50 states. |
| Must be enrolled half-time or more | Yes. |
| School requirements | Any school authorized to receive federal aid. Most four-year public and private schools are accepted. |
| Percentage of borrowers who have a cosigner | Did not disclose. |
Repayment Options
| In-school Repayment Options | • Immediate Repayment • Interest-Only • Repayment • Deferred Repayment |
| Grace period | 6 months for undergraduates. |
| In-school Deferment | Yes. |
| Military Deferment | Yes. |
| 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 | Yes. Firstmark Services (a division of Nelnet, Inc.) |
| Process for Escalating Concerns | Yes. Complaints are addressed internally by Nelnet Bank and the Customer Service Team. |
| Borrowers get assigned a personal customer service representative | No. |
| Average time from application to approval | 5 minutes. |
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. Nelnet Bank is backed by Nelnet Inc, which is one of the largest federal student loan servicers. The company offers private student loans to undergraduates, graduate students, and parents, as well as student loan refinancing.
What is Nelnet Bank?
Nelnet Bank is a lender that offers its own private student loans and refinancing loans. Backed by a company that’s helped over 30,000,000 students successfully navigate repayment, Nelnet Bank was established to help make your educational dreams a reality. This strong background helps Nelnet Bank offer expert help and educational funding solutions that give you an advantage at every step.
Is Nelnet Bank available in all 50 states?
Nelnet Bank is available to borrowers in all 50 states.
How long does it take to get a Nelnet Bank student 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. Your school must approve the loan which may take between four to six weeks.
What happens if I don’t qualify for a Nelnet Bank student 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 trying 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 ready to help you. And best of all, it won’t impact your credit score.
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 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” — this 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.
See Nelnet Bank’s disclosures here.
*Rates listed have an autopay discount only on the lower boundary.