Nelnet Bank Student Loan Refinancing Review

Nelnet, one of the largest federal student loan servicers, created Nelnet Bank. It offers student loan refinancing and lets you check your interest rate without a hard credit check. Here’s a quick overview of Nelnet Bank’s student loan refinancing product:

Nelnet Bank student loan refinancing: pros and cons

Every refinancing opportunity has advantages and disadvantages. Let's take a closer look at Nelnet Bank the advantages and disadvantages of a Nelnet refinance.

Pros

• Competitive interest rates. Nelnet Bank can help you save on interest payments with low refinance rates.
• Flexible repayment options. You’ll find multiple loan terms and hardship forbearance opportunities with Nelnet Bank.
• No hard credit check. Want to know your rate before submitting an application? Nelnet Bank runs a soft credit check so that your credit score isn’t affected while you’re comparing offers.
• No application fee. It’s free to apply for a refinance loan with Nelnet Bank.
• Autopay discount. You can lock in a 0.25% interest rate discount when you enroll in autopay.
• Cosigner options. Need the help of a cosigner? Nelnet Bank allows cosigners on your loan.

Cons

• Strong credit score required. With a credit score requirement of 680, not everyone is able to work with Nelnet Bank.
• Minimum annual income. You’ll need to earn at least $36,000 annually to borrow from Nelnet Bank.
• Must have a Bachelor's degree. You’ll need to have graduated with at least a Bachelor’s degree to refinance with Nelnet Bank.

Eligibility requirements

To work with Nelnet Bank, you’ll need to meet several eligibility requirements.

You must be a U.S. citizen or have permanent residency status. If you don’t meet this requirement, you’ll need to find a cosigner that does.

Additionally, you’ll need to have a credit score of at least 680 and an annual income of at least $36,000. Finally, you’ll need to have completed your Bachelor’s degree to qualify for this refinancing opportunity.

Application process

If you decide to work with Nelnet Bank, you’ll find student loan refinancing opportunities with fixed and variable rates, and terms that range from five to 25 years. You can kickstart the process by checking your rate with a soft credit pull. It generally takes two minutes to see your rate.

To submit a formal application, select a loan term and payment option that fits your budget. You might need to upload supporting documents to continue the application (e.g. proof of income and loan statements).

Nelnet Bank will review your documents. If your application is approved, you’ll have three days to cancel the loan. If you decide to move forward, then Nelnet Bank will send funds to your current lender to pay off the student loans you’re refinancing.

Afterward, you’ll receive information from Nelnet Bank on how to repay your new refinance loan. Typically, your first payment is due 45 days after the new loan is funded. You’ll receive a 30-day notice to make your first payment on your refinanced student loan.

Should you refinance with Nelnet Bank?

As you look at your student loan refinancing options, Nelnet Bank provides a worthwhile opportunity to consider. With competitive rates and flexible repayment terms, you might find the best deal with Nelnet Bank.

Nelnet’s soft credit check process means you have nothing to lose by exploring a student loan refinance through the lender. Before diving into any student loan refinancing arrangement, don’t forget to consider whether refinancing is a good strategy for your long-term repayment.

When you refinance federal student loans, you’ll lose access to benefits offered through these loans, like forgiveness programs, income-driven repayment, and generous deferment and forbearance options in the event of hardship.

If you know you won’t rely on these benefits in the future, have only private student loans, or don’t intend on working in the public sector, refinancing your loans might be a smart move.

Before making a final decision with a lender, shop around to compare student loan refinance options to find the best deal.