Nelnet Bank, founded in 2020 by Nelnet – one of the nation’s largest student loan services – is based in Utah and offers student loan refinancing. This product has moved from U-fi From Nelnet, and private student loans will make the same change in the coming months. Borrowers typically use Nelnet Bank to refinance private loans rather than federal student loans, according to the lender.
When you refinance your student loans with Nelnet, you benefit from features such as:
- Savings on fees. Nelnet Bank does not charge any application, origination or prepayment fees for refinancing.
- Discount for automatic payments. Choose to automatically withdraw payments from a bank account to receive a 0.25 percentage point discount on the interest rate.
- Help in case of financial difficulties. Nelnet Bank allows you to temporarily suspend loan payments in installments of two or three months, up to 12 months in total over the life of the loan.
There are two main drawbacks to refinancing a student loan with Nelnet Bank:
- Not everyone will qualify, and borrowers with federal loans will lose essential protections for them. These guarantees include eligibility for at least one income-based repayment plan and an extension of coronavirus relief measures until January 31, 2022.
- If you want to refinance yourself, you will need to earn at least $ 36,000 per year. If you use a co-signer, you should both earn at least $ 36,000 per year. A co-signer is not required to refinance, but could help you meet credit requirements or get a better interest rate.
Find the Best Student Loan Refinance Lenders
Nelnet Bank allows you to refinance federal and private student loans. You can also refinance a Parent PLUS loan and have it transferred to you.
2. If you are eligible, complete an online application. The application will only take a few minutes.
3. Evaluate loan offers. You will have the opportunity to review the offers and choose the one that suits you the best.
4. Accept an offer and download the documents. Nelnet Bank will need your latest student loan or repayment verification statement, and if you are employed, you must provide two recent pay stubs. Once the documents are approved and you agree to the loan terms, you will have three days to cancel the loan if you change your mind.
5. Pay off your original loan. Nelnet Bank will send funds to repay the refinanced loan after the three day window, and you will receive a letter with information about repaying your new loan.
Nelnet Bank offers the choice of fixed or variable interest rates when refinancing student loans. The lender can check your annual percentage rate, or APR, using a gentle pull that won’t hurt your credit score. Variable APRs range from 1.95% to 5.63% and fixed APRs from 2.55% to 5.59%.
You can choose from five, seven, 10, 15 or 20 year financing terms and estimate a monthly payment using the lender’s online loan calculator. 25-year loans are also available at varying APRs. Nelnet Bank does not charge administration, origination or prepayment fees.
If you are unable to make part of a payment within 15 days of its due date, Nelnet charges a late fee of 5% or $ 25, whichever is less. The insufficient funds charge is $ 20 and will be billed in lieu of late fees when both are assessed in the same billing cycle.
If you are considering refinancing federal student loans, one caveat is that you will no longer be eligible for pandemic assistance which has been extended until January 31, 2022. This includes a pause in payments, fees. interest and debt collection efforts.
Get a 0.25 percentage point interest rate discount when you sign up for automatic payments from a bank account, known as the Nelnet Bank Direct Debit Discount. You will forfeit the rebate if three consecutive deductions are returned for insufficient funds or if you cancel the automatic payment.
- You or a co-signer must be a U.S. citizen or have permanent resident status with a valid U.S. Social Security number.
- You must have obtained a bachelor’s degree or above.
- You or your co-signer must be the age of majority where you live or at least 18 years old if no requirements exist.
- You or your co-signer must have a credit score of 680 or higher.
- You must earn at least $ 36,000 per year. If you have a co-signer, you must both earn at least $ 36,000 per year.
- You don’t need a co-signer to apply, but having one could help you get better deal.
Borrowers should also verify that Nelnet Bank’s credit limits meet their needs. The minimum amount you can borrow is $ 5,000, and these limits apply:
- $ 125,000 for borrowers with an undergraduate degree.
- $ 175,000 for borrowers with a graduate degree, doctorate, MBA or law degree.
- $ 500,000 for borrowers with graduate degrees in health professions.
You will need a minimum FICO score of 680 to refinance yourself. Alternatively, the borrower may have a minimum FICO score of 640 and a co-signer with a score of at least 680.
Nelnet Bank is based in Utah and offers refinancing to borrowers across the country.
Nelnet Bank is not accredited by the Better Business Bureau and is not yet rated.
Nelnet Bank customer service representatives are available Monday through Friday, 7:00 a.m. to 8:00 p.m. Central Time at 800-446-4190. You can also get help by email at [email protected].
Refinancing from Nelnet Bank only offers immediate repayment, which means you immediately start making monthly payments.
Nelnet Bank can pay off a loan after the death of a primary borrower.
The lender also offers hardship tolerance in two or three month increments up to 12 months total over the life of the loan. Any unpaid interest will continue to accumulate and will be added to your principal balance at the end of the forbearance. The repayment period of your loan will be extended by the same number of months as the forbearance.
You can apply online and see your rate in just a few minutes, according to Nelnet Bank. Once you’ve selected a loan, uploaded documents, and signed your final agreement, the lender will typically pay off the original loan within 10-14 days.
In most cases, your first payment to Nelnet Bank will be due approximately 45 days after the new loan is funded. Nelnet Bank will send you an email so that you can create a refund account online, and you will have 30 days to make the first payment.
Nelnet Bank allows you to apply online and receive a rate within minutes. You can also upload documents and agree to loan terms online. The lender’s site offers a loan calculator to help you estimate monthly payments, as well as a scholarship finder.
- Consumers who have high interest loans and want to refinance them.
- Borrowers who earn at least $ 36,000 per year.
- People who have at least $ 5,000 in loans to refinance.