Nelnet Student Loan Review 2020: Are you Eligible to Apply?

Why Get a Student Loan from Nelnet?

There are a few reasons that stand out when considering Nelnet as a potential option. For example, applicants in some cases have the option to stall payments for up to 24 months in cases of unexpected income loss. Furthermore, there are interest rate discounts of 0.25% for those who set up automatic debit payments online.

What Student Loans does Nelnet offer?

There are two loan types available - undergraduate, and graduate. Although, graduate loans have various maximum loan amounts, depending on the field of study.

Undergraduate Loans

Minimum loan amount: $1,000
Maximum loan amount: $125,000

Graduate Loans

Minimum loan amount: $1,000
Maximum loan amount: Graduate or doctorate degree: $175,000
Maximum loan amount: MBA or graduate law degree: $175,000
Maximum loan amount: Graduate health professions degree: $500,000

Certain criteria will apply to each loan option:

Repayment terms of 5-15 years
A co-signer may be required (see below)
Three repayment terms are available
Variable APRs from 1.23%
Fixed APRs from 3.55%

Am I Eligible?

Applicants must meet the following conditions:

US Citizen/permanent resident
Studying in any state other than Vermont
Enrolled at least half time
Annual income of at least $36,000
680 credit score minimum

For those unable to meet conditions 4 and 5, a co-signer must be added to the application. This could make things difficult for many potential applicants, who don’t have a family member/friend able to cosign a loan.

The cosigner will be released from their financial responsibility after 24 months of consecutive timely payments.

Student Loan Refinancing with Nelnet

The same eligibility requirements as above apply here, and students must have at least $5,000 that they wish to refinance.

APRs	From 2.10% Variable / From 3.10% Fixed
Terms	5, 7, 10, 15, 20, 25 years
Loan amounts	$5,000 to $300,000
Auto debit interest savings	0.25%

In addition, it’s possible to be granted up to 24 months of ‘hardship forbearance’ in the case of an unexpected loss of income. This may provide some welcome security for some.

Loan Repayment Options

Immediate Payment - Begin full payments immediately upon loan disbursement
Interest-Only Payment - Only pay interest during enrolment
Fully Deferred Payment - No payments made during enrolment

Conclusion

Nelnet loans are available in all states except Vermont, but frustratingly, it’s difficult for many students to avoid the need for a co-signer. Ascent is a great alternative, with a wide range of student loans, some of which don’t require a co-signer under any circumstances. It even offers a 1% cash-back reward upon graduation.