About lender
Nelnet is a federal and private student loan servicer. Nelnet acquired Great Lakes Educational Loan Services in 2018, and together, they implement the best financial tools that allow them to outperform other lenders providing federal student loans than any other servicer.
Nelnet was founded in 1996 and serviced federal student loans for the U.S. Department of Education. It is currently based in Lincoln, Nebraska.
Pros and cons
Even though Nelnet has recommended itself as one of the best federal student loan servicers, its financial solutions still deserve to be thoroughly analyzed.
Pros
- For customers having difficulty making payments to their student loans, Nelnet offers deferment and forbearance options to postpone the payments. These services do not hurt the clientele's credit.
- Nelnet enables international students to apply for loan options with a co-signer, a qualified U.S. citizen, or a permanent resident.
- Customers can see if they qualify for Nelnet financial solutions and what rate they get without a hard credit check.
- With Nelnet, customers can qualify for the loan even if they filed for bankruptcy after seven years.
- The company charges no prepayment fees and penalties for its services.
- Nelnet's loans are available in all the U.S. states.
- The loan servicer provides customers with online payment arrangements.
Cons
- The company has below-average customer support compared with other lenders.
- Nelnet doesn't allow biweekly payments via autopay.
- Nelnet has comparatively high eligibility requirements of an approximate minimum credit score of 640 with a qualified co-signer and a minimum income of $36,000. Hence, not every customer with an average income can apply for the loan servicer's financial solutions.
- The loan servicer does not assign customers a dedicated student loan advisor.
- Nelnet reports to the credit bureaus on a monthly basis. That may affect the clientele's credit score positively or negatively, depending on how they make payments.
Conclusion
Hence, Nelnet is a loan servicer best suitable for borrowers who may need wiggle room on payments or debt cancellation options. Like any other financial company, it has its benefits and drawbacks. Nelnet is a trusting loan company offering federal student loans at highly compatible rates, providing pre-qualification options and various payment arrangements. However, the company may not be an appropriate solution for customers with low credit scores and income.
Terms and conditions
Nelnet's fixed APR is from 4.49% to 8.44%, while variable APR is 5.31-11.97%. Typically, the minimum required monthly payments for students' loans are $50.00. Nevertheless, it may be higher for graduates, doctorate, and MBA.
Funding a loan
The money is disbursed by the loan servicer toward the clients directly through the Nelnet app or to the customer's account through the banking or checking account. Typically, customers can get their money within a few business days.
