Nelnet Bank Student Loans Review

Nelnet is well-known for its role as a federal loan servicer. But in 2022, Nelnet Bank launched a student loan product for borrowers. The company offers various private student loans for different degree types, with generous loan limits and competitive rates. In this Nelnet student loans review, find out more about the pros and cons of taking out a Nelnet loan, eligibility requirements, and how to apply. 

Nelnet Bank private student loans review

Best for: Competitive rates

Nelnet private student loans offer borrowers high loan limits for undergraduate, graduate, and health profession loans. Nelnet Bank has competitive starting interest rates, and its maximum rates are much lower than those of some other private student loan lenders. 

Maximum loan limits range from $125,000 for undergraduate student loans to $500,000 for graduate health profession degrees. The combination of low rates and high limits can ensure that borrowers access the funds they need at affordable costs. 

Pros and cons

Eligibility requirements 

To qualify for Nelnet Bank student loans, borrowers must meet eligibility requirements, including: 

• Must be of age to enter into the loan agreement where you live (or apply with a cosigner) 
• Must be enrolled at least half-time in a qualifying school
• Primary borrower or cosigner must be a U.S. citizen or eligible permanent resident with a Social Security number
• Primary borrower or cosigner must have a FICO credit score of mid-to-high 600s or greater 
• Must meet the minimum loan amount of $1,000 and stay within the maximum loan limits based on degree type

Nelnet Bank doesn’t list a minimum income requirement for its private student loan product. However, for refinance loans, there’s a minimum income requirement of $36,000 per year. You don’t have to apply with a cosigner to get Nelnet private student loans. However, the company’s website states that only around 10% of Nelnet Bank borrowers get approved for student loans without a cosigner. 

Current private student loan rates

Borrowing limits

All Nelnet Bank student loans have a minimum loan amount of $1,000. But the maximum loan amounts vary based on your degree. The student loan borrowing limits for Nelnet Bank private student loans are: 

• Undergraduate loan limit: $125,000
• Graduate, doctorate, MBA, or graduate law degree loan limit: $175,000
• Graduate health profession degree loan limit: $500,000

Repayment terms

Nelnet Bank student loans may have different repayment terms to choose from, but its website doesn’t disclose them. On the lender’s disclosures page, it mentions a 10-year loan term but doesn’t specify alternatives. Repayment options include:

• Immediate repayment: You repay your Nelnet student loan once it’s disbursed. This includes both principal and any interest that accrues. 
• Interest-only repayment: While in school, you can make interest-only payments. Upon leaving school, full monthly payments begin. 
• Deferred repayment: You can defer your Nelnet Bank student loan payments while you’re in school. But be aware that interest will continue to accrue while you’re in school, which can lead to a higher balance when you graduate. 
• Fixed repayment: Through this option, you can pay just $25 per month while you attend school. Interest accrues during this time, and full payments begin after you leave school. 

Notable benefits 

Though Nelnet Bank started offering private student loans in 2022, the company has a long history in the student loan business. Nelnet is one of the largest federal student loan servicers, and the company has more than 40 years of experience. 

If you sign up for auto debit for your monthly payments, you’re eligible for an interest rate reduction of 0.25 percentage points. Plus, when you apply for Nelnet Bank student loans, you won’t have any application or origination fees. 

For those who apply with a cosigner, it’s possible to apply for cosigner release after making 24 consecutive payments. The loan must be in good standing, and the primary borrower must show proof of income indicating they can handle the loan on their own. Additionally, Nelnet offers deferment options. However, the specifics aren’t listed — you must contact your loan servicer to learn more about the process. 

Lastly, Nelnet has an A+ rating from the Better Business Bureau (BBB). 

What to consider before borrowing from Nelnet Bank

Before taking out private student loans from Nelnet Bank, apply for scholarships, grants, and federal student loans first. These options can help lower borrowing costs and provide more borrower benefits. 

If you do need private student loans to cover a funding gap, check out all of your options before deciding on one lender. Nelnet student loan interest rates are competitive, but it’s a smart idea to do your research and compare lenders. Look at rates, loan terms, potential benefits, and loan reviews. For example, while Nelnet has an A+ rating from the Better Business Bureau, the company has a low rating from customer reviews. Be sure to research more about the Nelnet borrower experience before taking out a loan.

How to apply for a Nelnet Bank student loan 

If you’re ready to take the next step, here’s how to apply for a Nelnet Bank student loan:

1. Review eligibility requirements: Make sure you meet Nelnet Bank’s eligibility requirements. One of the most important factors is having a minimum credit score in the mid-to-high 600s or higher. 
2. Check your rate: Nelnet Bank gives you the opportunity to check your rate without hurting your credit score, thanks to a soft credit pull. 
3. Provide personal and financial information: If you want to move forward, continue with your application and provide your personal and financial information, such as your address, your school details, and the requested loan amount. 
4. Consider a cosigner: If you have an eligible cosigner available, you might want to add them to your application. Given that just 10% of borrowers are approved without a cosigner, it could make a major difference. 
5. Select a loan: Review the loan terms and rates offered. Nelnet student loan interest rates can be fixed or variable. Choose the best fit for your situation. 
6. Sign the loan agreement: Provide any required documentation and sign the loan agreement. 

Why you can trust our Credible experts

The Credible editorial team is independent and unbiased. Partners do not influence our editorial content. To help you find the best student loan for your situation, we conduct thorough research and analyze thousands of lender data points. Using data-driven methodologies, we score criteria that are important to you. This allows us to objectively rank student loan lenders and products. To learn more, read our methodology below.

Methodology

To determine Nelnet Bank’s lender rating, Credible collected more than 1,000 points of data on two dozen private student loan companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.

• Repayment options: 30%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 15%
• Customer support: 10%

While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.

Learn more about our methodology.