Nelnet Bank Reviews: Student Loan Refinancing and Private Student Loans

Nelnet Bank refinancing is an option for borrowers who need a co-signer or who might need flexibility on payments in the future. It also offers private student loans.

Anna HelhoskiJanuary 29, 2021
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Student loan ratings

Nelnet Bank

  • Student loan refinancing

  • Private student loan

The bottom line: Nelnet Bank offers student loan refinancing and private student loans. Its student loan refinancing is best for borrowers who may need wiggle room on payments, or those who didn’t graduate. Its private student loan is best for borrowers who want lengthy forbearance options.

Student loan refinancing review

Nelnet Bank Student Loan Refinance
Check Rate

on Nelnet Bank's website

Nelnet Bank Student Loan Refinance

5.0

NerdWallet rating 
Check Rate

on Nelnet Bank's website

Fixed APR

2.99 - 5.90%

Variable APR

2.00 - 5.70%

Min. Credit Score

680

Pros

  • Offers longer-than-average forbearance length of 24 months.
  • You can see if you'll qualify and what rate you'll get without a hard credit check.

Cons

  • Below-average customer support compared with other lenders.
  • Loans aren’t available in Vermont.

Best for borrowers who may need wiggle room on payments, or those who didn't graduate.

Full Review

Refinancing student loans through Nelnet Bank is a good option for borrowers who don't have strong enough credit to qualify independently but have a creditworthy co-signer. It's also a good fit for borrowers who might need flexibility on payments in the future.

Applicants with credit scores as low as 640 can be accepted if they apply with a co-signer who has a score of at least 680. It also offers longer-than-average forbearance periods, allowing borrowers to postpone payments for up to 24 months throughout their loan term.

Nelnet Bank at a glance

  • Generous forbearance policy.

  • Co-signer release option.

  • Longer-than-average forbearance periods.

How Nelnet Bank could improve

Nelnet Bank could improve by:

  • Assigning customers a dedicated student loan advisor.

  • Allowing biweekly payments via autopay.

Nelnet Bank student loan refinancing details

  • Soft credit check to qualify and see what rate you’ll get: Yes.

  • 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 - $225,000.

  • Can transfer a parent loan to the child: Yes.

  • Application or origination fee: No.

  • Prepayment penalty: No.

  • Late fees: Yes; a fee equal to 5% of the late payment or $10, whichever is less, applies after a payment is 15 days late.

Compare Nelnet’s range of interest rates with other student loan refinance lenders. Your actual rate will depend on factors including your — or your co-signer’s — credit history and financial situation. To see what rate Nelnet will offer you, apply on its website.

Financial

  • Minimum credit score: 680.

  • Minimum income: $36,000.

  • Typical credit score of approved borrowers or co-signers: Did not disclose.

  • Typical income of approved borrowers: Did not disclose.

  • Maximum debt-to-income ratio: 45%.

  • Can qualify if you’ve filed for bankruptcy: Yes; after seven years.

Other

  • Citizenship: Must be a U.S. citizen or permanent resident, or apply with a co-signer who is a U.S. citizen or permanent resident.

  • Location: Available in all U.S. states.

  • Must have graduated: No.

  • Must have attended a school authorized to receive federal aid: No.

  • Percentage of borrowers who have a co-signer: Did not disclose.

Many lenders are offering relief related to COVID-19. Check this list of private loan relief options to see what this lender offers.

  • Academic deferment: Yes, borrowers can postpone payments if they return to school.

  • Military deferment: Yes, borrowers can postpone payments while serving in the military.

  • Forbearance: Yes, borrowers experiencing an economic hardship can postpone payments for up to 12 months throughout the life of the loan.

  • Natural disaster forbearance: Borrowers can postpone payments if they're involved in a natural disaster.

  • Co-signer release available: Yes.

  • Death or disability discharge available: Yes.

  • Loan discharge if co-signer dies or becomes disabled: Did not disclose.

repayment preferences:

  • Allows greater-than-minimum payments via autopay: Yes.

  • Allows biweekly payments via autopay: No.

  • Loan servicer: Nelnet Bank.

  • In-house customer service team: Yes.

  • Process for escalating concerns: No. Complaints are handled by Nelnet's customer service team.

  • Borrowers get assigned a dedicated banker, advisor or representative: No.

  • Average time from approval to payoff: Funds are typically disbursed for payoff 48 hours after initiation date.

Before refinancing with Nelnet Bank

You can apply for a Nelnet Bank refinanced student loan on its website. Before deciding on a student loan refinance lender, compare multiple student loan refinance options to make sure you’re getting the best rate you qualify for. In addition to interest rates, compare lenders’ repayment options and the flexibility they offer borrowers who are struggling to make payments.

If you aren’t eligible to refinance with Nelnet Bank

If Nelnet Bank denies your refinance application, the lender will let you know why. Depending on the reason, you may want to consider other lenders or using a co-signer.

NerdWallet recommends prequalifying with multiple refinance lenders before you apply. This will let you know which lenders you may be eligible with, without affecting your credit.

How does this loan compare?

Nelnet Bank Student Loan Refinance
Citizens One Student Loan Refinance
Laurel Road Student Loan Refinance
NerdWallet rating 
NerdWallet rating 
NerdWallet rating 
Check RateCheck RateCheck Rate
Fixed APR

2.99 - 5.90%

Fixed APR

2.97 - 9.15%

Fixed APR

2.80 - 6.00%

Variable APR

2.00 - 5.70%

Variable APR

1.99 - 8.90%

Variable APR

1.89 - 5.90%

Min. Credit Score

680

Min. Credit Score

Does not disclose

Min. Credit Score

700

Private student loan review

Nelnet Bank Private Student Loan
Check Rate

on Nelnet Bank's website

Nelnet Bank Private Student Loan

4.5

NerdWallet rating 
Check Rate

on Nelnet Bank's website

Fixed APR

3.59 - 12.21%

Variable APR

1.20 - 11.92%

Min. Credit Score

680

Pros

  • Borrowers can make interest-only payments while in school.
  • Offers 24 months of hardship forbearance.

Cons

  • Loans aren’t available in Vermont.
  • Loans not available to borrowers with student visas.
  • You can’t make bi-weekly payments via autopay.

Best for borrowers who want lengthy forbearance options.

Full Review

Nelnet Bank offers private student loans for undergraduate and graduate students. Nelnet is also one of the largest federal student loan servicers.

Compared with the largest private student loan companies in the industry, Nelnet Bank stands out by offering personalized rate estimates without affecting your credit. This allows you to shop for the best rate without penalty.

Nelnet Bank borrowers can opt to save money by making interest-only payments during school.

Nelnet Bank private student loans at a glance

  • You can see if you’ll qualify and what rate you’ll get without a hard credit check.

  • Offers interest-only repayment options while in school.

  • Must be a U.S. citizen.

How Nelnet Bank could improve

  • Lending to international students.

  • Offering biweekly payments via autopay.

Nelnet Bank private student loan details

  • Get a personalized rate before applying: Yes.

  • Loan terms: 5, 10 or 15 years.

  • Loan amounts: $1,000 with an aggregate loan limit of $125,000.

  • Application or origination fee: No.

  • Prepayment penalty: No.

  • Late fees: Yes after 15 days past due borrowers pay 5% of late payment or $10, whichever is less

Compare Nelnet Bank's range of interest rates with private student loan lenders. Your actual rate will depend on factors including your — or your co-signer's — credit history and financial situation. To see what rate Nelnet Bank will offer you, apply on its website.

Financial

  • Minimum credit score: 680 individually or 640 with a co-signer.

  • Minimum income: $36,000.

  • Typical credit score of approved borrowers or co-signers: Did not disclose.

  • Typical income of approved borrowers: Did not disclose.

  • Maximum debt-to-income ratio: Did not disclose.

  • Can qualify if you’ve filed for bankruptcy: Yes, after 7 years.

Other

  • Citizenship: Borrowers must be U.S. citizens.

  • Location: Available in all U.S. states.

  • Must be enrolled half-time or more: Yes.

  • Types of schools served: Any school authorized to receive federal aid. Most four-year public and private institutions are accepted.

  • Percentage of borrowers who have a co-signer: Did not disclose.

Many lenders are offering relief related to COVID-19. Check this list of private loan relief options to see what this lender offers.

In-school repayment options:

  • Deferred repayment: Don’t make any payments while you’re in school.

  • Interest-only repayment: Pay only interest while you're in school.

  • Immediate repayment: Make full payments as soon as the loan is disbursed, while you’re still in school.

Post-school repayment options

  • Grace period: 6 months.

  • In-school deferment: Yes.

  • Military deferment: Yes.

  • Forbearance: Yes, hardship forbearance for up to 24 months and natural disaster forbearance.

  • Co-signer release available: Yes after 24 months of on-time payments.

  • Death or disability discharge: Yes.

  • Loan discharge if co-signer dies or becomes disabled: No.

Repayment preferences

  • Allows greater-than-minimum payments via autopay: Yes.

  • Allows biweekly payments via autopay: No.

  • Loan servicer: Nelnet Bank.

  • In-house customer service team: Yes.

  • Process for escalating concerns: Yes.

  • Borrowers get assigned a dedicated banker, advisor or representative: No.

  • Average time from application to approval: 5 minutes.

Before applying for a Nelnet Bank student loan

Before taking out a Nelnet Bank student loan or any other private student loan, exhaust your federal student loan options first. Submit the Free Application for Federal Student Aid, known as the FAFSA, to apply.

» MORE: NerdWallet’s FAFSA Guide

Compare your private student loan options to make sure you’re getting the best rate you qualify for. In addition to interest rates, look at lenders’ repayment alternatives and the flexibility they offer to borrowers who struggle to make payments.

If you aren’t eligible for a Nelnet Bank student loan

If Nelnet Bank denies your student loan application, the lender will let you know why. Depending on the reason, you may want to consider other lenders or, if you haven’t already, try applying with a co-signer.

If you don’t have access to a co-signer — or still aren’t eligible with one — consider lenders that don’t require co-signers or specialize in bad or no credit student loans.

STUDENT LOANS RATINGS METHODOLOGY

NerdWallet believes the best student loan is one you can repay at the lowest interest rate you can get. That’s why NerdWallet’s student loan ratings reward lenders that offer a variety of loan terms, limit their fees and penalties, and extend borrowers multiple options to avoid default. Points are also awarded for soft credit checks, underwriting transparency and other consumer-friendly features. Use these ratings as a guide, but we encourage you to shop around for the lowest interest rate you can qualify for. NerdWallet does not receive compensation for its reviews. Read our editorial guidelines.

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