A Nelnet Review: What You Should Know

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Nelnet review

If you looking for an honest Nelnet review, keep reading! We are sharing some key things you should know if Nelnet is your student loan servicer in this Nelnet review.

Nelnet: Who they are and what they do

If you are one of the 45 million student loan borrowers in the US, then you’ve probably heard of Nelnet. The company is one of 11 federal student loan services currently under contract to process payments for student loans by the Federal Government. In addition to processing payments, Nelnet also provides customer service support to assist you with repayment.

If you need help with lowering your monthly payment or have trouble making payments, their role is to answer questions and work with you to find other repayment options.

Now that you know more about who they are, let's get into the details of this Nelnet review.

Common Nelnet customer complaints

Despite their current status as a federal student loan service, Nelnet has had its fair share of complaints. They have nearly 400 complaints to the Better Business Bureau for issues ranging from incorrect reporting to the credit bureaus, customer service, and misallocation of payments.

A common theme among the complaints filed against Nelnet is the misinformation provided regarding loans. Customers cite instances where they are given conflicting information each time they speak to a different representative.

One significant complaint regarding income-driven repayment plans has landed the company a class action lawsuit.

Borrowers seeking to recertify their income for this repayment plan were given new, often higher, payment amounts based on their hourly wages instead of documented information from their federal tax returns.

In addition to this pending lawsuit, the federal government has also canceled its contract with Nelnet.

According to a release by The US Department of Education, the department is seeking to improve customer service and to hold service providers accountable. As a result, Nelnet is no longer contracted to continue servicing federal student loans beyond December 2020.

What should you do if you have a Nelnet student loan?

If your student loans are currently being serviced through Nelnet, don’t fret.

There are several options that you can explore if you’ve had similar issues or simply want to avoid them.

Apply for Nelnet student loan forgiveness

You may be eligible for Nelnet student loan forgiveness. In this instance, you would no longer have to make payments on your loan and can avoid Nelnet altogether.

There are three types of forgiveness for federal student loans. Your loans can either be forgiven, canceled, or discharged. The type of forgiveness you receive will be based on your specific situation.

The most common type of student loan forgiveness is the Public Service Loan Forgiveness. Those employed by the government or a non-profit organization can qualify for this type of loan forgiveness.

Though student loan forgiveness is an option, it is important to know that can be difficult to get accepted. In fact, 99% of applicants are rejected for forgiveness based on a recent study done by the U.S. Department of Education.

Despite these staggering statistics, applying for loan forgiveness may still be worth it. Visit studentaid.gov to see forgiveness options and requirements.

Consider refinancing your Nelnet student loans

If you don’t qualify for loan forgiveness, consider refinancing instead. Refinancing simply means that you replace your current loan with a new one, often at a lower interest rate with lower payments. This can result in your saving money on your loans and paying them off faster.

There are some things that you should consider before choosing to refinance your student loans. This includes knowing what your new rate will be, what your new monthly payment will be, and how it will impact your repayment time frame.

Refinancing your student loans is a good option if you have good credit, still have a significant amount of time left on your loans, or have private loans. If you are considering refinancing, explore reputable lenders to find out which options are available for your situation. For instance:

LendKey: LendKey connects borrowers with private student loans and refinanced student loans from credit unions. They allow you to refinance your loans at a lower rate while providing flexible repayment options that work for you.

Credible: If you want to explore multiple lenders in the market, consider Credible. They are an online marketplace for loans. Potential borrowers can use the platform to compare loan options and decide which one is best for them. This is a great tool to research refinancing options that will work for you.

Wait for new federal student loan service assignments

Following the Department of Education’s announcement to discontinue services with Nelnet, you have the option of waiting for a new student loan service provider.

If you decide to do this, you should continue to make payments to Nelnet until you are assigned a new service provider. To find out who your new loan servicer is, you can contact the Federal Student Aid at 1-800-433-3243.

Work on a plan to pay off your student loan debt

Paying off the balance of your student loan debt is also an option. You can accelerate your repayment timeline by putting extra money toward your loans. Getting on a budget will allow you to see where you can reduce spending to free up cash for your loan.

The more cash that you are able to free up in your budget, the more you will be able to apply toward paying off your student loan debt quicker.

In addition to reducing your spending, you can also pick up a side hustle to bring in extra income.

How to contact Nelnet customer service

If you are having issues with your loan repayment or have questions, you can always still contact Nelnet’s customer service.

Nelnet customer service phone number: Their customer service center number is 888-486-4722 and they are available by phone Monday through Friday from 8 am - 10 p, EST. If you are outside of the US, the phone number is 303-696-3625.

Nelnet Customer Service Email: If you do not have an urgent request, you can contact them via their email form.

If you need to file a complaint against Nelnet, you can always contact the Better Business Bureau or the Consumer Finance Protection Bureau.

Nelnet review: In closing

I hope this Nelnet review has been helpful. Getting a degree should be a positive experience. Dealing with poor customer service, misallocation of funds, and incorrect credit reporting from your loan service provider doesn’t have to be a part of it.

If your student loans are being serviced by Nelnet, it's a good idea to consider the alternative options mentioned in this article.

More importantly, take advantage of the free resources available here at Clever Girl Finance to help pay off your student loan debt.

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