Nelnet refinance Nelnet student Loans? Short answer: probably. But understanding where Nelnet stacks up compared to the other national loan lenders when it comes to refinancing your Nelnet Student Loans is well worth investigating. In a recent summer 2021 study, Student Loan Planner garnered finalists for best overall online loan refinancing company.
The majority of student loans are offered through federally insured or guaranteed programs. Some students with excellent credit history have no problems qualifying for favorable interest rates on their federally insured loans such as Stafford Loans and Perkins loans. In general, however, most students with less than stellar credit will have to turn to non-flared federal options to get an interest rate that will fit their needs. One of the most effective ways to do this is to refinance one of your student loans.
Refinancing your Nelnet or Perkins loans with a private lender comes with a couple of risks. First, your eligibility for federal forbearance may be affected. Second, in some cases, your private lender may decline your request for forbearance if you are currently delinquent on your federal loans. However, with a few simple fixes, you can get your federal student loan refinance program to accept a forbearance from your private lender.
In general, you can obtain a forbearance when you enter a new subsidized income level after coming off of subsidized family income assistance. A similar program to this is called Family Dependency Loans. To apply, you must first contact your loan servicer. They will provide you with information on how to apply. In most cases you must also indicate if you have had some type of financial hardship that has kept you from paying on your loans.
Typically, you will receive a partial forbearance if you agree to extend your payments out until your third year out of school. This means you can continue to make your monthly payments for up to three additional years, at which point you must start repayment on all of your federal student loans. If you want to extend your forbearance, you must contact your loan servicer for more specific requirements and guidelines. Many lenders offer extensions but you must be disciplined enough to keep up with the payments.
Another way to get a forbearance for your Perkins or Nelnet federal student loans is to consolidate them. You do not have to stop making your monthly payments for three years; rather, you can roll them over into a new introductory interest rate for six months. For most borrowers, this will provide them with enough time to repay their loans and go back to school. However, you may want to seek additional guidance if you have special needs or if you are experiencing financial difficulties.
Some parents with student loans opt to use the option of deferment. You must have been in school for the prior five years in order to apply. Each school year, you can apply for deferred tuition forgiveness and apply it to your student loans parent plus loans. This allows you to reduce your student debt by dropping your payments for the current academic year and all future academic years. This option will benefit you if you are experiencing financial difficulties or if you have not fully repaid your prior academic debts.
The federal student loan servicers are responsible for processing your application. They may require you to meet certain criteria, or they may ask for additional information. If you fail to meet the eligibility requirements, you may not get the help you need. If you are not approved for either a deferment or forbearance, you will have to complete repayment on your student loan.