Getting Familiar With Nelnet, The National Education Loan Network

If you end up requiring loans in order to pay for your education, it may be beneficial for you to familiarize yourself with a little thing called the National Education Loan Network, or Nelnet for short. Unlike other student loan companies, which are merely banks with an educational loan division, Nelnet caters solely to students in order to help them pay for college in every way possible. Let’s take a look at the ways Nelnet can help you.

Making Use of Federal Aid

Nelnet makes it easy to secure federal funding for your college education. However, you have to take a few steps on your own before you can get that highly coveted financial aid check. For instance, if you don’t fill out the FAFSA, you can kiss any sort of federal financial aid goodbye for that academic year. Once you receive your SAR, or Student Aid Report, you will also need to return your award letter, indicating which types of financial aid you would like to accept. It is only at that point you can connect with Nelnet and select them as your lender. Plus, if you end up getting a private loan, having all of your loans, including the federal ones, at Nelnet can save you time and a lot of trouble.

Private Loans for Students

Private loans can be taken out if you find that federal loans simply do not cover all of your education costs. You should always, as stated before, try your best to pay for your college education using federal grants, loans like the Stafford Loan or Perkins Loan and scholarships. However, if you need more money to pay for tuition and other college expenses, a private loan through Nelnet is a choice way to take out a loan responsibly.

The Benefits of Taking Out a Private Loan With Nelnet

Nelnet makes getting a private loan for college a lot easier and affordable. You have to be especially careful when getting a private loan because so many have hidden fees, high interest rates and other issues that make repayment difficult at best. Some of the positives of getting a private loan from Nelnet include:

  • Very low interest rates.
  • Instant online pre-approval.
  • No need to make payments while school, though you can begin making payments while in school if you’d like.
  • A six-month grace period after graduation.
  • Benefits for on-time payments.
  • Flexible repayment terms.
  • Co-signer benefits.
  • A repayment plan of up to 25 years.

Unlike at a bank, you are sure to get lower rates with Nelnet, because they specialize in all sorts of education loans, even those for graduate students, students seeking career advancement and medical students.

Private Loans for Parents

Another great loan option for getting through college is the loans for parents offered by Nelnet. For instance, if they qualify, parents can get the PLUS loan through Nelnet. While this is a federal loan, it acts in a similar way to a private loan, as payments must be made while the student is in school. However, if a PLUS loan is not an option, Nelnet also offers private loans that parents can be a part of. Now, undergraduate, graduate and other college-bound students must sign the education loans from Nelnet, but parents can act as cosigners. This allows the interest rate on the loan to be significantly lower and helps the student build credit.

Once again, these loans are available only to students that attend a participating school—typically most schools with a degree program. You can borrow up to the amount of your educational costs, including the financial aid you’ve already received, of course.

How Can I Apply?

Applying for a private loan through Nelnet is actually fairly simply. Go to their website at www.nelnet.com and follow the instructions. You can find out if you’re pre-approved within minutes.

Some eligibility requirements include:

  • U.S. citizenship or permanent residency.
  • No previous default on a loan.
  • Enrollment in a college or university that participates in the program.

So, if you find yourself coming up a bit short on college money, even after all of your other federal financial aid options have been exhausted, a private loan from a qualified and respectable lender like Nelnet is the next step.