You are here because you want to know more about Nelnet loan forgiveness program, right? You’re at the right place.
Being one of 4 servicers approved by the DOE to originate and service federal student loans, Nelnet aids students and their families both pay and plan for a college education.
Learn more about Nelnet’s services and history, plus more information on Nelnet student loan forgiveness programs that might interest you as a borrower.
Who is Nelnet?
Nelnet is a global financial organization that handles much more than student loans. In fact, Nelnet’s business includes everything from credit life insurance to telecommunications to asset management.
Nelnet was initially known as UNIPAC Loan Service Corporation when it was launched in 1968. The company changed to its present name in 1996. As one of the biggest student loan servicers in the nation, Nelnet owns more than 50 subsidiaries across Canada and the U.S, including LoanSTAR, intuition and infiNET.
According to Nelent, the company presently owns more than $464 billion in federal student loans from more than 13 million borrowers, with many of them being federally insured. Nelnet’s acquisition of Great Lakes in 2018 added $4 billion in Federal Family Education Loan (FFEL) Program lpoans.
With its headquarter in Lincoln, Nebraska, Nelnet presently employs more than 2,500 people across all its divisions.
Nelnet Review – What Does Nelnet Do?
Before we compiled this Nelnet review of loan forgiveness, we found out that Nelnet is a student loan servicer that works with millions of borrowers in Canada and the United States. Plus, aside having its own portfolio of student loans, Nelnet also services loans made by dozens of other lenders.
Nelnet Loan Forgiveness Programs for Students
Because of the partnership that exists between Nelnet and the Department of Education, there are many Nelnet student loan forgiveness programs available to borrowers who are eligible.
Nelnet and Public Service Loan Forgiveness (PSLF)
Are you a borrower who works as a full-time volunteer in Peace Corps or AmeriCorps or works in the public sector? You might qualify for Public Service Loan Forgiveness (PSLF) as far as your loans are eligible.
To qualify for the PSLF Program, you’ll need to make 120 on-time, consecutive payments on your eligible loans aside working for a PSLF-approved employer. But once you’ve met all the requirements, your loans could be forgiven completely via the Department of Education.
Even if the PSLF has denied you before, a new Temporary Expanded Public Service Loan Forgiveness (TEPSLF) could help you get approved and become debt-free!
With FedLoan Servicing being the primary servicer for PSLF, all loans approved for the program will be transported to FedLoan as part of the forgiveness process.
Nelnet and Teacher Loan Forgiveness
Teacher Loan Forgiveness via Nelnet asks that you have eligible student loans and meet certain job-related requirements. However, once these Nelnet loan forgiveness requirements are met, you might earn up to $17,500 towards your FEEL program loans or Direct Loans if you qualify.
For majority of borrowers, one of the hardest requirements for Nelnet Teacher Loan Forgiveness Program is teaching full-time at a low-income educational agency or school for 5 consecutive years.
Educators who apply for Teacher Loan Forgiveness enjoy forgiveness via FedLoan Servicing, who is the major servicer for the program. Aside this, all remaining loans and their balances will be moved to FedLoan upon approval.
If you’re a teacher with a Perkins Loan, you might be eligible for a Perkins Loan Cancellation if other requirements are met. You can learn more about a Perkins Loan Cancellation for teachers and other loan forgiveness programs for teachers here.
Nelnet and Total and Permanent Disability (TPD) Discharge
Nelnet focuses in its service offerings. One of these specialities is handling the Total and Permanent Disability (TPD) Discharge for disabled veterans and individuals through the DOE.
To be eligible for a TPD Discharge, paperwork verifying your disabled status will need to be submitted. This can come from your doctor, the Office of Veterans Affairs, or the Social Security Administration. If your TPD Discharge is approved, any balances remaining on your student loans can be forgiven completely.
The TPD Discharge affords disabled borrowers a way to have their student loans forgiven after meeting the program’s requirements. Loans eligible for a TPD Discharge include Federal Direct Loans, TEACH grants, FFEL Loans, and Perkins Loans.
Nelnet and Other Student Loan Discharges
Better than Nelnet loan forgiveness options, there are other student loan discharge programs available, depending on your circumstances. Through Nelnet, student loan discharge programs include:
- School closure discharge
- Unpaid refund discharge
- False certification discharge
A student loan discharge frees you from your obligation to pay back your student loans if you’re approved.
Nelnet and Income-Driven Repayment Plans
To access some Nelnet loan forgiveness programs, you might need to change your repayment plan for eligibility. Below are some income-driven repayment plans that are available in this Nelnet review to consider.
- Revised Pay As You Earn (REPAYE) Repayment Plan
- Income-Contingent Repayment (ICR) Plan
- Income-Based Repayment (IBR) Plan
- Pay As You Earn (PAYE) Repayment Plan
- Income Sensitive Repayment (ISR) Plan
Income-driven repayments plan generally come with lower monthly payments, longer repayment periods, and may qualify you for one or more student loan forgiveness programs that can help you become debt-free.
Recent News About Nelnet
In this section you will find a collection of stories about Nelnet and its effect on borrowers and the student loan industry in general.
April 2015: During his time in office, Barack Obama made countless efforts on behalf of student loan borrowers, leading many to refer to his work as “Obama Loan Forgiveness”. As part of this effort, he released the Student Aid Bill of Rights to help shield borrowers and tackle problems with servicers in early 2015.
August 2016: In Michigan, a federal judge dismisses a class action lawsuit that claims Nelnet made money for the business by not crediting student loan payments to borrowers’ accounts on time.
October 2017: Nelnet offers to purchase Great Lakes for $150 million, which would take the number of Department Of Education-approved student loan servicers from 4 down to 3. The next step is getting approval from federal regulators.
February 2018: An internal memo is obtained by NPR. In the memo, U.S. Education Secretary Betsy Devos argues to protect federal student loan servicers like Nelnet from state lawsuits, causing debates with countless states already suing servicers.
February 2018: Nelnet’s acquisition of Great Lakes is approved after the company meets all required closing conditions. There were some opinions that this would create a monopoly, meaning decreased competition, and potentially worse customer service for borrowers.
June 2018: A federal class action lawsuit is filed against Nelnet in Nebraska. The lawsuit claims Nelnet failed to process borrowers’ requests to renew income-driven repayment plans in a timely manner. It also claims Nelnet unlawfully cancelled borrowers’ IDR payments due to processing errors, made money on the interest that accrued on these accounts, and offered forbearance to account for processing delays.
February 2019: The Education Department’s inspector general issues a report on federal student loan contractors, claiming servicers that include Nelnet aren’t being monitored closely enough and may be costing taxpayers millions annually by not preventing defaults and delinquencies.
So, you have a federal loan but looking for Nelnet reviews to validate if this loan servicer is legit or not? Well, you’re at the right place.
To be honest, if you have a federal student loan, there’s a chance your loan servicer could be Nelnet, especially as they start to service loans obtained from the Great Lakes acquisition.
Presently, Nelnet has a “A+” rating with the Better Business Bureau, despite nearly 500 complaints filed against the business. On Yelp, Nelnet has 1.5-star rating based on more than 100 reviews from borrowers.
Nelnet Student Loan Forbearance
At times, making your student loan payment seems impossible. Maybe you decided to go back to grad school, your entry-level salary isn’t what you had hoped for, or a health condition stops you from working – but you have forbearance and deferment options to postpone your payments and bring your account current without hurting your credit. Each one has its own time limit and eligibility rules.
Read on to discover which fits your unique situation—we almost always have a solution for you.
Take a Break from Payments
Nelnet student loan forbearance gives you a break from monthly payments for a certain period of time. A lot of options are available to meet a wide range of needs. If you are encountering hardship in making payments and want to see which options fits your current situation, , log in to your account and click Postpone My Payment to see which deferment or forbearance works best for you. Of course, you can also call us at NOW to talk through your options.
- Log in to your account and click Postpone My Payment to apply for deferment or forbearance.
- Calculate accrued interest while in forbearance. (To avoid capitalization, you may choose to pay accruing interest or even small payments toward the balance.)
You can Choose to Avoid Default With Deferment or Forbearance
If you find yourself encountering financial hardship, work an internship, or performing certain types of community service, you may be qualified to postpone payments with forbearance. All loans take on interest during forbearance, so it’s smart to pay at least the monthly interest during this period to avoid interest capitalization.
Forbearance resolves any delinquency on the account – — log in to your account and click Postpone My Payment to see if you’re eligible..
If you are unable to make payments and your condition does not qualify you for a deferment, you may request forbearance. There are many types of forbearance available.
Active Military Duty
Corporation for National and Community Service (CNCS) Loan Repayment Program
Department of Defense (DoD) Loan Repayment Program
Student Loan Debt Burden
Teacher Loan Forgiveness Program
Is Nelnet Your Loan Servicer?
If you’d love to consider switching to another great loan forgiveness lender aside Nelnet, other options are readily available to you today.
By consolidating your federal loans, you not only get to pick who you want as your servicer; you also gain access to the benefits that come with consolidation. A loan consolidation can help you:
- Make your loans eligible for the PSLF Program ( Public Service Loan Forgiveness) anelnet nd other forgiveness programs
- Get an interest rate that combines the weighted average of all your consolidated loans
- Simplify your payment schedule by converting multiple monthly payments into one loan and payment
Aside Nelnet, services you can choose from during consolidation include but not limited to Navient, FedLoan, and Great Lakes.
If you’re not eligible for the advantages that student loans come with and you’d like to check out more options, private student loan consolidation is also something to consider. In some cases, a private consolidation loan could offer a lower interest rate, better repayment terms, and an AMAZING customer service.
Interested in moving your loans away from Nelnet? Want to learn more about your Nelnet loan forgiveness Program options? Simply fill out our free online form or call a student loan specialist by phone NOW.