Nelnet is one of the four major federal student loan servicers. Nelnet, based in Lincoln, Nebraska, started managing student loans in 1978 on behalf of Nebraska banks. Now it contracts with the government to manage $147 billion in federal student loans for 5.8 million borrowers, according to its 2015 annual report.
If Nelnet is your student loan servicer, it’s the company you pay your federal student loan bill to. The other three major servicers are FedLoan Servicing, Great Lakes and Navient, and there are several smaller servicers out there, too.
Your servicer should be your first stop when you’re unable to afford your student loans; its job is to help you come up with a plan to get back on track. Here’s how to work with Nelnet to get the student loan support you’re entitled to.
In this article
Nelnet at a glance
- Fourth-largest servicer of federal loans as of December 2015.
- Phone number: 888-486-4722, staffed 24/7, excluding U.S. holidays.
- You can also contact Nelnet on its website, Facebook and Twitter.
How to make a payment
The easiest way to make and keep track of your loan payments is by registering on Nelnet’s online customer portal. Once you’re registered, sign up online for auto debit, which deducts your required monthly payment from your bank account. That also gets you a 0.25% interest rate discount on eligible loans. It’s crucial to have enough money in your account to cover your payment when you use auto debit; otherwise, you could rack up overdraft fees.
Nelnet has a mobile app within which you can check your loan balance and read messages from the company. You can also create text alerts, under “Settings” when you’re logged in, to get an update if your account is past due.
You have the option to make payments by mail — which will be applied within five business days once Nelnet receives them — or by phone at 888-486-4722. Have your Social Security and account numbers ready when you call.
How to pay down loans faster
If you have money in your budget to spare — after saving for retirement and meeting other financial goals — consider contributing more than your scheduled student loan payment each month. The more you pay now, the larger the dent you’ll make in your principal balance, and the more money you’ll save on interest over time.
There are a few ways to do it: When you sign up for auto debit, you’ll have the option to request that Nelnet apply extra to your loans each month. You can also make a payment at any point in the month in addition to your monthly bill.
If you’d like, give the company special instructions to send extra payments to a specific loan — say, to the one with the highest interest rate. To do so, email instructions to Nelnet, and specify whether it’s a one-time request or should happen on a recurring basis. The Consumer Financial Protection Bureau put together a sample letter you can use. Learn more in the “Special Instruction Payments” section of Nelnet’s Frequently Asked Questions page.
You can also shorten your repayment term or pay less in interest over time if you refinance student loans through a new private company. Understand the benefits you could lose by refinancing federal loans, though, like the ability to get student loan forgiveness for working in public service jobs.
How to get student loan help
As your servicer, Nelnet is required to work with you to ensure you can afford your loan payments. If your bill is past due or you’re worried you can’t pay your next one, call Nelnet at 888-486-4722 and ask about your options.
Late payments will start negatively affecting your credit score when you’re 90 days behind. At 270 days late, your student loans go into default, and the federal government could start withholding your pay or your tax refund to repay your debt.
Avoid default by temporarily postponing your bills through deferment or forbearance, or signing up for an income-driven repayment plan. Nelnet will help you figure out which income-driven plan you qualify for; these plans lower your payments by calculating the amount you owe each month based on what you earn. You’ll apply on studentloans.gov and send the form to Nelnet for processing.
How to contact Nelnet
Call 888-486-4722. It’s staffed 24/7, except during U.S. holidays.
Follow Nelnet on Facebook or Twitter. While you can make general comments and ask questions online, it’s best not to share personal information on Nelnet’s social media accounts.
Email Nelnet by filling out an email form online. If your question is urgent, particularly if it’s time-sensitive and relates to your loan payments, calling is your best bet.
Think of Nelnet as your first line of defense when you’re paying off your loans. Additional resources to help you manage your loans include studentloans.gov/repay from the U.S. Department of Education and the Repay student debt tool from the Consumer Financial Protection Bureau. NerdWallet can also help you create a student loan repayment strategy:
A Guide to Getting Out of Student Loan Debt
4 Ways to Get Federal Student Loan Forgiveness
9 Best Student Loan Refinancing Companies in 2016
Brianna McGurran is a staff writer at NerdWallet, a personal finance website. Email: bmcgurran@nerdwallet.com. Twitter: @briannamcscribe.
The article was updated June 20, 2016. It was originally published Oct. 9, 2015.
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