See What Nelnet Has to Offer
Big Time Lender
Nelnet is an educational loan provider and guarantor with headquarters in Nebraska. Consolidation loans underscore Nelnet’s student loan products and services. As if to say, “We know you’ll need one,” Nelnet delivers titillating borrower benefits and consolidation incentives. Besides a standalone Federal Consolidation Loan, the company also acts as lending partner for a large number of collegiate alumni associations that feature a consolidation loan for their members.
Nelnet Advisors Guide Your Consolidation from Decision to Approval
Before you consolidate with Nelnet talk directly to one of their loan advisors. He or she is expert at weighing customer finances and navigating the perils of consolidation self-doubt. Make no pretense; consolidation is a long-term relationship with a lender and a monthly payment. The benefit is that about 50% less of your money goes out the door each month, but you pay more for your education when all is said and done for the favor. So if your federal loans are in risk of default, are held by multiple lenders, are taking a back seat to more pressing financial responsibilities, or are plagued by high interest rates, consolidating with a Nelnet Federal Consolidation Loan may offer relief.
FFELP Consolidation
The Federal Family Education Loan Program (FFELP) includes the Federal Consolidation Loan. The feds have already outfitted this loan with some non-negotiable terms. And since July 1, 2006 a number of previously extant terms have been discontinued:
- Since July 1, interest rates are fixed. The government calculation takes the “weighted average” of your federal loans as of the date on your consolidation application, rounds up to the next 1/8 th and caps interest rates at 8.25.
- Federal consolidation loan borrowers will not be subjected to a credit-check or unnecessary loan fees.
- Since July 1, married couples must apply for separate federal consolidation loans.
- Students still in school may not consolidate loans until after graduation.
Nelnet’s Repayment Terms, Rates and Incentives
Nelnet determines its terms of repayment, interest rate deduction perks and borrower incentives above and beyond the feds’ terms:
- Loans in default are not eligible.
- Borrowers must have a minimum of $7,500 in federal loans. Loans may be from any lenders.
- Borrowers may earn a .25% interest rate deduction when they sign-up to make payments electronically; earn an additional 1.00% deduction after 36-consecutive, on-time payments.
- Nelnet offers a unique incentive: borrowers who consolidate after September 1, 2006 may qualify for a six-month grace period before payments kick in.
Alumni Consolidation Loan Lender
Nelnet also partners with dozens of college alumni associations to extend an alumni consolidation program. Alumni associations are among the newest organizations to provide a service for their members at the same time earning monetary rewards from Nelnet based on loan volume.
