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Nelnet is one of 10 different companies that are contracted as federal student loan servicers by the government. It also offers private student loan products — including both private student loans and student loan refinancing.
But you can also consider refinancing Nelnet loans with another lender if you prefer.
Here’s how to refinance Nelnet loans:
- How to refinance Nelnet loans
- Refinancing vs. consolidation: What’s the difference?
- Reasons to refinance Nelnet loans
- Compare multiple offers when refinancing your loan
How to refinance Nelnet loans
Depending on your credit, refinancing your student loans might help you save money and even pay off your loans faster. Also keep in mind that you can refinance Nelnet loans with Nelnet itself or with another private lender.
If you’re ready to refinance your Nelnet loans, follow these four steps:
- Consider whether refinancing is right for you. If you have federal student loans serviced by Nelnet, it’s important to carefully weigh the pros and cons of consolidating your student loans with a private lender. This is because refinancing federal student loans will cost you federal protections, such as access to income-driven repayment plans and student loan forgiveness programs. Additionally, you’ll no longer be eligible for the federal payment and interest accrual suspension under the CARES Act due to the COVID-19 pandemic.
- Compare lenders and pick a loan option. Be sure to compare as many student loan refinance companies as possible to find the right loan for you. Consider not only interest rates but also repayment terms and any fees charged by the lender. After researching lenders, choose the loan option that works best for your needs.
- Complete the application. Once you’ve picked a lender, you’ll need to fill out a full application. You’ll likely also need to submit required documentation, such as pay stubs or tax returns.
- Manage your loan payments. If you’re approved, make sure to keep up with payments on your old Nelnet loans while the refinance is processed. Once your old loan has been paid off and your new loan is in place, consider signing up for autopay so you won’t miss any payments in the future — many lenders even offer a rate discount for borrowers who opt for automatic payments.
One of the most important parts of refinancing your student loans is comparing as many lenders as you can to find a loan that works best for you. Credible makes this easy — you can see your prequalified rates from our partner lenders in the table below in two minutes.
Lender | Fixed rates from (APR) | Variable rates from (APR) | Loan terms (years) | Loan amounts |
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![]() | 4.9%+ | 5.31%+ | 5, 7, 10, 15, 20 | $10,000 up to $250,000 (depending on degree) |
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![]() | 6.79%+1 | 7.06%+1 | 5, 7, 10, 15, 20 | $10,000 to $500,000 (depending on degree and loan type) |
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![]() | 6.99%+2 | 6.99%+2 | 5, 7, 10, 12, 15, 20 | $5,000 to $300,000 (depending on degree type) |
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![]() | 6.0%+5 | 8.03%+5 | 5, 10, 15, 20 | $1,000 to $250,000 |
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![]() | 5.23%+3 | 5.28%+3 | 5, 7, 10, 12, 15, 20 | $10,000 to $250,000 |
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![]() | 5.9%+4 | 8.12%+4 | 5, 10, 15, 20 | $5,000 to $250,000 |
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![]() | 6.94%+ 7 | N/A | 5, 7, 10, 12, 15, 20 | Up to $300,000 |
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![]() | 4.49%+ | 5.02%+ | 5, 7, 10, 15 | Up to $300,000 |
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![]() | 5.75%+ | N/A | 7, 10, 15 | $10,000 up to the total amount of qualified education debt |
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![]() | 5.79%+ | N/A | 5, 10, 15 | $7,500 up to $250,000 (depending on highest degree earned) |
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Compare personalized rates from multiple lenders without affecting your credit score. 100% free! |
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All APRs reflect autopay and loyalty discounts where available | 1Citizens Disclosures | 2College Ave Disclosures | 5EDvestinU Disclosures | 3 ELFI Disclosures | 4INvestEd Disclosures | 7ISL Education Lending Disclosures | 8Nelnet Bank Disclosures |
Learn More: Nelnet Student Loan Servicing: Reviews and Tips for Borrowers
Refinancing vs. consolidation: What’s the difference?
The terms refinancing and consolidation are often used interchangeably. The difference between the two comes down to whether you have private or federal student loans.
- Private student loan refinancing: If you refinance your student loans, your old loans will be paid off with one new loan. This can also be referred to as private student loan consolidation. You can refinance both federal and private student loans — however, remember that you’ll lose your federal protections if you refinance federal student loans.
- Federal student loan consolidation: If you have federal student loans, you can consolidate them into a federal Direct Consolidation Loan. With this option, you can combine your federal loans while also keeping your federal benefits. It can also make certain federal loans — such as Parent PLUS Loans — eligible for programs like income-driven repayment and Public Service Loan Forgiveness. Additionally, unlike private refinancing, federal consolidation doesn’t require a good credit score.
Private refinancing | Federal consolidation | |
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Which loans qualify? | Federal and private student loans | Federal student loans |
How are rates calculated? | Based on your credit | Uses the weighted average of your current federal loans, rounded up to the nearest 0.125% |
How long does it take? | Varies by lender (can be up to 60 days or more) | About 30 days |
Advantages |
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Disadvantages |
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For example, say you want to pay off $50,000 in student loans. Federal consolidation could lower your monthly payments by extending your repayment term, but refinancing might get you a lower interest rate that could help you pay off your student loans faster — though it will cost you your federal benefits and protections.
You can estimate how long it’ll take to pay off your student loan debt using the calculator below. Use the slider to see how increasing your payments can change the payoff date.
Enter loan information
If you increase your payments by $ monthly on your $ loan at %, you will pay $ a month and pay off your loan by Jan 2021.
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Checking rates won’t affect your credit score.
Check Out: How to Refinance Your Student Loans
Reasons to refinance Nelnet loans
Here are a few reasons why you might want to consider refinancing your Nelnet loans:
- Lower interest rate: Depending on your credit, you might qualify for a lower interest rate through refinancing. This could help you save money and potentially pay off your student loans early. Keep in mind that there’s no limit to how often you can refinance student loans, which means you can refinance again in the future if you could get a lower rate later on.
- Reduce your monthly payments: If you opt for a longer repayment term through refinancing, you could lower your monthly payments to help lessen the strain on your monthly budget. Just keep in mind that choosing a longer repayment term means you’ll pay more in interest over time.
- Simplify repayment: If you have multiple student loans, refinancing lets you combine them into one new loan. This leaves you with just one loan and payment to worry about.
- Switch to a new lender: If you’re unhappy with Nelnet’s service, you can take your business elsewhere by refinancing with a different lender.
However, refinancing isn’t right for everyone. Here are a few potential drawbacks to keep in mind while deciding whether to refinance your Nelnet loans:
- Lose access to federal benefits: If you have federal student loans serviced by Nelnet, refinancing them will cost you your federal protections, such as access to unemployment deferment or forbearance.
- Hard to qualify if you have poor credit: You typically need good to excellent credit as well as verifiable income and an acceptable debt-to-income ratio to get approved for refinancing. If you have poor credit or don’t meet other eligibility criteria, it might be difficult to qualify. While some lenders offer student loan refinancing for bad credit, these loans generally come with higher interest rates compared to good credit loans.
- No repayment plan flexibility: With federal student loans, you can switch between various federal student loan repayment options depending on your needs. For example, you could opt for an extended repayment plan or income-driven repayment plan. Private refinanced loans don’t offer this flexibility.
- Could keep you in debt longer: Refinancing to a longer term could get you a lower monthly payment — however, it also means you’ll pay more in interest and stay in debt for a longer period of time.
If refinancing could help you save money and pay off your loans faster, then it could be a good idea — however, be sure to consider the drawbacks so you can make the right decision for your situation. You can use our calculator below to see how much you can save by refinancing your student loans.
Step 1. Enter your loan balance
Step 2. Enter current loan information
Step 3. Enter your new loan information to start calculating your savings
If you refinance your student loan at % interest rate, you can save will pay an additional $ monthly and pay off your loan by . The total cost of the new loan will be $.
Does refinancing make sense for you?
Compare offers from top refinancing lenders to determine your actual savings.
Checking rates won’t affect your credit score.
Learn More:
Compare multiple offers when refinancing your loan
If you decide to refinance your Nelnet loans, remember to compare as many lenders as possible to find the right loan for you. Consider interest rates as well as repayment terms, potential fees, and eligibility requirements.
Comparing lenders is easy with Credible — you can see your prequalified rates from multiple lenders in two minutes after filling out a single form.
See Your Refinancing Options
Credible is 100% free!
Keep Reading: You Can Refinance Sallie Mae Student Loans — Here’s How