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    Nelnet Student Loan Forgiveness Program: Eligibility And Application Process

    Judy Miller
    Judy Miller - 2020-10-17T21:00:00.000Z
    Loan Forgiveness

    Nelnet is a loan service partner of the US Department of Education (ED), thus it offers several federal student debt forgiveness programs to its borrowers. If your loan is managed by this company, you may be eligible for these initiatives provided by the ED. 

    This organization has consistently been working to simplify arrear repayments. As one of the largest servicers, it helps discharge any remaining debt for eligible individuals. 

    Nelnet: What Is It And How Does It Work?

    Nelnet is a student loan servicer that works directly with borrowers. It manages their lending products as well as helps them pay off their debt. Since these lending products are owned by the Federal government, this company has a contract with the US Department of Education. This means that it can handle repayment for federal student arrears. 

    Borrowers with federal educational debt aren’t able to choose their servicer. The Department of Education will assign students’ accounts to any one of the 11 contracted servicers. 

    Therefore, if Nelnet contacts you about your loan, then this company is your servicer. Alternatively, you can also verify the organization servicing your debt by visiting the student aid website. 

    Student Loan Forgiveness Programs

    Due to its partnership with the Department of Education, there are many Nelnet student loan forgiveness programs available for eligible borrowers.

    Income-Driven Repayment (IDR) Plan

    There are four income-driven repayment plans offered by the federal government. 

    • Income-based Repayment Plan (IBR)
    • Pay As You Earn Repayment Plan (PAYE)
    • Revised Pay As You Earn Repayment Plan (REPAYE)
    • Income Contingent Repayment Plan (ICR)

    An income-driven repayment plan allows students to cap their payments at a percentage of their monthly income. When enrolled in any of the four plans, the remaining balance is eligible for forgiveness after 20 to 25 years. The IDR plan is beneficial for those with larger debt balances compared to their incomes.

    These plans offer lower monthly payments and longer repayment periods and can also qualify you for one or more student arrear forgiveness programs. Eventually, this can help you become free and clear of outstanding debt balances.

    Public Service Loan Forgiveness (PSLF) Program 

    This initiative is provided by the government and qualifies non-profit employees with federal student loans. After making about 120 consecutive payments, eligible borrowers can have the remaining balance forgiven. To benefit from the PSLF, they must make payments while enrolled in an income-driven repayment plan.    

    If you want to opt for the PSLF program, you’ll need to submit an Employment Certification Form to the FedLoan Servicing address that’s listed on the form. Even if you had been denied for PSLF before, a Temporary Expanded Public Service Loan Forgiveness (TEPSLF) can help you to get approved and access relief. 

    Temporary Expanded Public Service Loan Forgiveness (TEPSLF)

    Since the government recognized that PSLF guidelines weren’t clear, they created Temporary Expanded Public Service Loan Forgiveness (TEPSLF). It gives eligible borrowers a second chance to qualify for debt forgiveness. 

    The Department of Education is reconsidering eligibility using an expanded list of repayment plans. The TEPSLF program is temporary, has limited funding, and is provided on a first-come-first-served basis. When all the funds are used, the TEPSLF opportunity ends.

    To qualify for TEPSLF, you must have:

    • Submitted a PSLF application that has been denied due to missing payments under a qualified repayment plan
    • Had at least 10 years of full-time employment certified by a qualifying employer. This must be approved by FedLoan Servicing for the PSLF program
    • Made 120 qualifying payments
    • Met all requirements for the last 12 months before applying 

    Teacher Loan Forgiveness Program

    Teachers who are employed full-time after working for five years in low-income public elementary or secondary schools are eligible for this initiative. They can get up to $17,500 to help repay Direct and FFEL loans. To qualify, the teacher must have taken out the lending product after October 1, 1998.

    This program requires teachers to have eligible student arrears and meet certain job-related requirements. For most borrowers, the toughest requirement is teaching full-time at low-income schools.

    Applicants who apply and are approved will get forgiveness through FedLoan Servicing. 

    How To Get In Touch With Nelnet

    You can contact Nelnet for help with your online account. You can email the company through its online email form.

    You can even contact this company through:

    • The phone number that’s mentioned on its website. You can call between Monday through Friday, during service hours from 8 a.m. to 10 p.m. ET 
    • Its mailing address 

    The Bottom Line

    In addition to its standard forgiveness programs, Nelnet also specializes in assisting disabled veterans and individuals through the Nelnet Total and Permanent Disability Discharge initiative. The Nelnet disability discharge program makes it possible for eligible borrowers to have their student arrears forgiven. 

    If your account is being managed by Nelnet, you must take advantage of the debt forgiveness programs. Contact the lender and check if your lending products are eligible for any of the aforementioned programs.