Nelnet Loan Forgiveness And All You Need To Know About The Company

Nelnet Loan Forgiveness And All You Need To Know About The Company
You must have heard of Nelnet company or Nelnet student loan, but you keep wondering what it means. You are in the right page as we are set to unleash everything you need to know about it and some other related information.

What’s Nelnet?

Nelnet is a legal or legitimate company whose major duty is to ensure that federal student loans are perfectly disbursed to eligible students. Nelnet is one of the leading loan servicers in the world due to their awesome financial capacity and their high level of accountability.

Though today’s focus is largely on Nelnet loan service and its loan forgiveness, let’s quickly discuss the meaning and functions of loan servicers.

Who is a loan servicer and Its Functions?

A loan servicer, just like Nelnet, is a company chosen by the US Government to help you monitor your federal student loan accounts.

The US government — through its Department of Education (DOE) — has some selected companies that will serve as your agents when it comes to your federal student loan account. You can’t choose any servicer of your choice because the government will only attached them to you immediately you receive your requested loan.

These business organizations didn’t just monitor your account, they also ensure that you enjoy the government-initiated loan forgiveness programs as long as your eligibility is guaranteed.

The ‘Big Four’ Federal Loan Servicers

There are many loan servicers such as OSLA, Granite State, EdFinancial Services, Cornerstone and MOHELA; but only four of them are in leading positions. These four companies or organizations are referred to as the “Big Four loan servicers” because they collectively monitor over 90% of all the Federal loan accounts in the country. The names of loan servicers in the ‘big four’ list include FedLoan Servicing, Great Lakes, Navient and Nelnet.

From ‘Big Four’ To ‘Big Three’ Loan Servicers

Meanwhile, the list of the “big four loan servicers” was recently reduced to three as Great Lakes are now made to operate as Nelnet’s affiliate. This is because Nelnet company released $150m to acquire the Great Lakes Educational Loan Services Inc. in February 2018.

Nelnet’s decision to acquire Great Lakes didn’t just help the company increase its income, but also makes it the largest loans servicers in the country and beyond.

As said earlier, our focus is largely on Nelnet, so, we won’t be talking more about other loan servicing companies today.

Back To Nelnet’s Profile


Nelnet didn’t just monitor federal student loan accounts, it equally deals with the production of diverse services which ranges from telecommunications to assets management and credit insurance. All of these services are aimed at ensuring that American citizens have maximum conveniences while they in school and after graduation.

Created in 1996 by Mike Dunlap and Steve Butterfield, the US-based company began its expansion in March 2000 when it officially bought a Colorado-based loan servicing company UNIPAC which had been in existence for 22 years. In the same year, Nelnet also acquired Florida-based inTuition Inc, another loan servicing company in the country.

As a result of the massive success it recorded in 2003 — in which it officially became a well-known traded company, the company changed its name from Nelnet Loan Services Inc to Nelnet Inc. You still want to read more about nelnet’s history, growth and expansion? We have all of them HERE

Functions of The Nelnet Company

Nelnet functions are numerous and they are classified into three categories. These categories are often referred to Nelnet’s line of business. They include:

1. Nelnet Diversified Solutions (NDS): This line of business enhances the company’s ability to provide unrivaled 24-hour customer services to students who have one or more student loan accounts with them. This category or function also helps the company to outsource financial aids to guaranty agencies.

This category consists of well-known subsidiaries (companies bought by Nelnet) such as Nelnet Loan Servicing, Great Lakes Educational Loan Services, Inc., Firstmark Services, and CampusGuard.

2. Nelnet Enrollment Services (NES): This line of business deals with the provision of tools and facilities that enhance students enrollment into higher institutions. This sector of the company also helps students to fully prepare for higher institutions as it provides them with online educational planning equipments or materials.

This service provides students and guardians the chance to make online research about school admission and available scholarships. Students can equally prepare for test and exams via the online materials(services) provided by this part of the company.

Nelnet’s subsidiary companies that fall in this business line include Peterson’s Interactive, Peterson Publishing, EssayEdge, and Government Services.

3. Nelnet Business Solutions (NBS): This is the last line of business deployed by the Nelnet company in order to have positive impact in the lives of US citizens, especially students in tertiary institutions.

This part of the company helps in providing suitable repayment plan for graduates. It also creates a platform where philanthropists can sponsor students fee, especially young children who are attending private colleges and faith-based K-12 schools. Nelnet’s affiliate or subsidiary companies under this category include FACTS Management, Business Solutions, and PaymentSpring (PS).

Nelnet Federal Student Loan

As mentioned earlier, you can’t choose a servicer of your choice as it is only the US government — through the Department of Education — who has all it takes to attach a servicing company to any borrower’s account.

If you get a call from Nelnet’s representative as soon as you are given your requested loan, it means that the company has been charged with the responsibility of monitoring your student loan account.

However, it is important you confirm if Nelnet has been attached to you in order to prevent being a victim to scam and other online frauds.

Visit the federal student loan official portal and provide your Federal Student Aid (FSA) ID username and password to gain access to your account information. Click on your account info and see if Nelnet is truly the loan servicing company attached to your loan account.

Having confirmed this, you’re advised to swiftly contact the company via its official website or hotline (1-888-486-4722), and familiarize yourself with how it will run your account. Ask questions about the repayment plans it would like to recommend and begin payment as soon as you can to avoid having your loan account in default.

Nelnet eStatements is readily available if you want to receive regular updates on your account via your email, but you must sign up first to enjoy the service.

Three Stages Of Your Nelnet Student Loan

Your federal student loan account — managed by the Nelnet company — has three life cycle or three stages. These stages include School, Grace and Payment Periods.

Stage 1: School Period

This is the first stage of your student loan as it is used to pay your tuition fees and other school related expenses. During this period, you don’t need to be extremely worried about repaying your debt because your repayment plans only commences after your graduate.

You’re advised to meet your school’s financial aid counselor who will put you through the school’s terms and conditions attached to the student loan. The counselor will also let you know other financial aid awards such scholarships, grants and work-study, you’re privileged to enjoy as students.

Working with your school counselor will equally help you know everything required to qualify for all subsequent financial aids.

Top Four Things To Do While Your Loan Is In Stage One (School Stage)

1. Have A Budget: Though you’re not mandated to pay your loan while in school, it is certain you will pay it after graduation. This is why it is advisable you have a budget that will guide your spending, and equally help you know the exact money you need for all your school expenses.

You must endeavor to know your school fee, accommodation fee, amount to spend on textbooks and make your budget in a way that will covers all needed educational equipments.

Quick advice: Don’t ask for a student loan that is more than the money you need because the interest accrued by the loan could be too enormous for to pay after graduation.

2. Avoid Unnecessary Spending: You must avoid spending money on things that are irrelevant to your education and general living. You must be very cautious of the manner in which you spend your money while you’re in school.

3. Apply For Scholarships and Other Free-money Opportunities: As a brilliant student, your chances of winning an academic scholarship are very high. Therefore, you must endeavor to apply for scholarship programs that will help lessen your financial burdens. apart from scholarship, other money-free opportunities, like grants and state offerings, are also up for grab. You should take your time to search for online scholarship programs and apply for the ones you have their requirements.

4. Start Your Loan Payment As Soon As Possible: As much as you’re only required to start paying your debts after school, it is advisable you begin an interest-only payment plan as soon as possible — even if you’re still in school

This will definitely reduce the amount of accrued interest and it will equally reduce the amount of overall debts you will pay after graduation.

Stage 2: Grace Period

This is a six-month gap between the day you graduated from school and the time you’re expected to start repaying your debt. This period is created by the US government to you adapt to a new life of a graduate. This period also serves as the time you’re expected to think of the best repayment plan that will suit your current financial status.

Though you had already chosen the repayment plan of your choice before you were granted your student loan, you still have a change to change it again. This six months grace period is enough for you to review all the available payment options and choose the one that is convenient.

Top Three Things To Do While Your Loan Is In Stage 2 (Grace Period)

You’re expected to take some steps during this period in order to boost your repayment speed. This actions include the following:

1. Ensure Your Nelnet Account Is Accurate: As you prepare to start your repayment period, ensure that your Nelnet account is rightly set up. You must ensure that it is eligible to get all important and regular messages from the company about your loan account.

2. Choose The Best Repayment Option Suitable For Your Financial Capacity

3. Apply For Auto Debit: Auto debit is a system that automatically debits your bank account every month as long as you have enough money that covers your monthly payment plan. With this system, you don’t need to undergo the stress attached to paying your monthly payment as it will be automatically deducted from your bank account. Auto debit also gives you the chance to enjoy 0.25 interest rate reduction on your loan.

Stage 3: Payment Period

This is the last stage of your loan cycle and it is the period you need to start paying your loans. At this point, you have no option than to strictly follow the payment plan you eventually chose during your grace period. You should be conversant with the date you’re expected to make your monthly payment and how to pay it.

Top Two Things To Do While Your Loan Is In The Last Stage (Payment Period)

1. Often Check Your Loan Balances And Due Dates: One of the things you must do during this period is to ensure that your loan balances is updated and you know when you’re due to make your monthly payment. You can check your loan balances and due dates by logging into your Nelnet account.

Nelnet has made this easy as it provides you with monthly eStatements (your account statements) messages that will be sent directly to your email if you opt-in for the service.

2. Get Nelnet Student Loan App: Though this is not compulsory, you’re are advised to download the Nelnet app on your smartphone and other devices for quick and easy way to pay your bills. The app is easy to use and it doesn’t consume much of your browsing data.

Nelnet Student Loan Forgiveness Programs

Nelnet are engaged in some loan forgiveness programs as a result of its cordial relationship or partnership with the nation’s Department of Education, and it ensures that eligible borrowers enjoy the service.

What’s student loan forgiveness?

Student Loan forgiveness is a program initiated by the US Government to overlook the debt of some borrowers who possess all the needed requirements. ‘forgiveness’ as used in this context simply means government’s decision to pardon every borrower who couldn’t pay all of their debts after 10 years of uninterrupted repayment plan.

Just as it helps you monitor your loan account, Nelnet company also ensures that your loans could be forgiven via some programs. These programs are discussed below:

1. Nelnet And Public Service Loan Forgiveness (PSLF)

Public Service Loan Forgiveness (PSLF) is a program that provide eligible public servants with the chance to see their debts being forgiven by the government. There are some criteria that guarantees your chances of benefitting from the PSLF program, which include:

  • Being a full-time public servant
  • Being an employee in a PSLF-supported organization
  • making a non-stop or consecutive payment for 120 months.

2. Nelnet and Teacher Loan Forgiveness

Teacher Loan Forgiveness is another program aimed at ensuring that your debts or students loans are ultimately forgiven and forgotten by the government.

This program is organized by the Department of Education, through the Nelnet servicing company, to give eligible borrowers the chance to enjoy one of the country’s most talked-about loan forgiveness services. To enjoy the Nelnet Teacher loan forgiveness, you must ensure the following:

  • Your federal student loans are eligible for the teacher loan forgiveness program.
  • You must be a full-time teacher in a public school — that pays low salary — for five consecutive years.
  • As a teacher with a Perkins Loan, you can enjoy the Perkins loan cancellation if you meet the requirements.

3. Total and Permanent Disability (TPD) Discharge

Nelnet isn’t a company for only the physically fit individuals, it also includes the physically challenged people in its plan and services. As a result of this, Nelnet has a specialised set of experts who are in charge of everything that has to do with the physically challenged people.

The Total and Permanent Disability discharge is a program established by the Department of Education in order to help the physically disabled people who couldn’t pay all of their debts as long as they meet the needed criteria, which consists of:

  • A paperwork that confirms your status as a physically challenged person. This paperwork must be issued by the U.S. Department of Veterans Affairs also known as VA.
  • Your loans must be forgivable. The loans that can enjoy this program include Federal Direct Loans, FFEL (Federal Family Education Loans), Perkins Loans, and TEACH grants.
  • You should also be certified by the Social Security Administration (SSA) that you’ve been enjoying the Administration’s Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI) benefits due to your physical status.

4. Bankruptcy Discharge

This service is created for people who goes bankrupt and couldn’t continue their monthly repayment plans due to tough financial problems. Meanwhile, The Bankruptcy Discharge doesn’t forgive your loans permanently or completely, it only gives you the privilege to pause your repayment plan during your financial crisis.

You’re expected to fill a form which explains your current situation and the number of months you won’t be able to honor your monthly payments plan.

However, it is very important you know that your loan will continue to accrue unchanged interest rate during your financial crisis.

5. Borrower Defense to Repayment

This is another way you can see your federal loans being forgiven, but you can only enjoy it on one condition — that’s if your school is engaged in inappropriate activities that violated the law of the US government.

If your loan must be forgiven through this process, you will need to apply for federal loan forgiveness based on borrower defense via the DOE online portal. See all you need to know about this service HERE.

6. Closed School Discharge

With this program, some of your federal student loans will be forgiven if your school closed down days after receiving your loan. You must send a mail to Nelnet company, letting them know that your school is no longer functioning. This mail must include quality evidence to back your claim, you read more HERE.

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