Nelnet is one of the largest federal student loan servicing companies in the United States. It works with many borrowers across the country to help them manage and repay their loans. The company is based in Lincoln, Nebraska.
Definition and Example of Nelnet
Nelnet is primarily a student loan servicing company. It works directly with borrowers to manage and repay their loans. These loans are owned by the federal government. Nelnet has contracted with the U.S. Department of Education to handle federal student loans in repayment.
The student loan servicing division of Nelnet is a branch of Nelnet Diversified Solutions. In fact, the company operates four distinct business sectors that provide other services, such as payment processing and asset management for institutions and individuals. As of September 30, 2021, Nelnet served $513.5 billion in student loans for 15.8 million borrowers.
One of Nelnet’s subsidiaries is Major Federal Student Loan Services.
How Does Nelnet Work?
Borrowers with federal student loans cannot choose which entity services their accounts. The U.S. Department of Education assigns new loans to one of the ten servicers it contracts with after disbursing funds to you.
Nelnet is responsible for your monthly billing if it is your student loan servicer, as well as processing and applying your payments to the loan. It is also your point of contact if you wish to change repayment plans, apply for deferment or forbearance, or work towards receiving student loan forgiveness.
The Federal Student Aid website stores all information regarding your federal student loans, from loan balance to the servicer for each account. You just need to log in with your username and password to review your information.
How to Use Nelnet
Make sure to create an online account with Nelnet if it is your loan servicer. Start making payments. It’s wise to respond promptly when Nelnet or any other student loan servicer contacts you. You can risk late payments, which can damage your credit, or even enter into default or delinquency on your student loan if you delay your response or ignore communications.
Visit nelnet.com to manage your student loans online. Follow the steps to create your online account. You can view all your account details and make student loan payments once you log in.
You will also receive updates on your student loans and electronic account statements via your online account. You will receive this information directly in your Nelnet inbox if you sign up for electronic notifications from Nelnet, which you can access through your web account or the mobile app.
How to Contact Nelnet for Assistance
There are other ways to contact Nelnet besides using your online account. You can email Nelnet through the online email form by providing your personal details and your comment or request.
Nelnet’s phone number is 888-486-4722. Service is available from 8 a.m. to 10 p.m. Eastern Time, Monday through Friday.
The regular mailing address for Nelnet for general correspondence is P.O. Box 82561, Lincoln, Nebraska 68501-2561.
Nelnet has a different mailing address for California residents: P.O. Box 82578, Lincoln, Nebraska 68501-2578.
Check Nelnet’s website for the correct mailing address for payments to your account if you wish to make payments by mail.
Potential Changes to Nelnet
The federal government announced in June 2020 that it would undergo a major restructuring of its student loan servicing agreements. The agreement will include only five major servicers. Nelnet was excluded. However, Nelnet was one of six companies retained as servicers when the restructuring was announced in October 2021, with increased oversight to protect borrowers.
Summary
Main:
- Nelnet is one of the largest federal student loan servicers in the country. It manages repayment plans for millions of borrowers.
- All communications and payment information from the company should be received once your loan is established if Nelnet services your loan.
- Borrowers can contact Nelnet and manage their accounts through the company’s website, or they can call for assistance. They can also mail in their payments.
Source: https://www.thebalancemoney.com/nelnet-what-to-know-about-this-student-loan-servicer-4778176
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