Nelnet works with the Department of Education (Department) to help you achieve your educational goals. We provide customer service on your federal student loans, so we answer your questions, offer solutions if you're having trouble paying, and process your payments.
Repayment: Standard Repayment Plan
The most common repayment plan is Standard Repayment. It spreads equal payments over 10 years. Generally, this is the most economical repayment plan, and it is set up for everyone who is about to begin making payments but has not yet selected a different repayment plan option.
Graduated Repayment : On a Graduated Repayment Plan, payments start low and gradually increase over the years, making this a potentially wise choice for young professionals who expect to earn more money as they advance in their careers. Payment amounts increase every two years until the loan balance is paid in full. You will pay more interest on this plan than on the Standard Repayment Plan.
Extended Repayment : Do you have more than $30,000 in outstanding FFELP or Direct Loans? Then the Extended Repayment Plan may be for you. This plan makes monthly payments more affordable, but it will take a longer amount of time to pay off the loan (up to 25 years), and you will pay more interest. Under the Extended Repayment Plan, you may choose standard payments (equal payments over the payment term) or graduated payments (payments that increase every two years).
Income-Sensitive Repayment : For FFELP loans only, this plan denotes annual adjustment to your minimum monthly payment, based on your monthly gross income. You may choose this plan for up to five years, after which your account will defer to either the Standard or Graduated Repayment Plan.
Income-Based Repayment : If you demonstrate partial financial hardship, you may qualify for this repayment plan. Partial financial hardship occurs when payments on the Standard Repayment Plan are greater than 15% of the difference between your adjusted gross income and 150% of the poverty line, based on your state and family size. Parent PLUS loans and consolidation loans (made up of underlying parent PLUS loans) do not qualify for this plan. Use our Income-Based Repayment calculator to see if this plan is right for you.
Income-Contingent Repayment : For Direct Loans only, on this plan, your payments are based on your adjusted gross income, family size, and total loan balance. Payments are extended over 25 years with this plan. Parent PLUS loans and consolidation loans containing parent PLUS loans that entered repayment before 2006 do not qualify. Calculate what your payments will be on this plan.
How to Make a Payment : Making payments on your student loan with Nelnet is easy! With options to pay anytime, anywhere, you can manage your account your way. We offer a variety of payment options, including automatic debits (ACH), to let you choose a method that's convenient for you. You can see these options below, but first, let's make sure you understand your accounts and due dates.
You may have more than one student loan account with Nelnet (account numbers start with D, J, or E). Within each account, your individual loans are grouped according to the characteristics they have in common. For example, loans of the same type and interest rate will be in a group together. When you make a payment, it is typically applied proportionally across the account's groups that have an amount due. However, if all of your loans are current (not past due), you can request that your payment be applied only to specific loan groups.
Loan Consolidation : If you make more than one monthly student loan payment, you may find life easier with one affordable payment. A Direct Consolidation Loan brings all of your federal student loans together with a fixed interest rate. The rate is determined as an average of the loan rates that are being consolidated (rounded up to the nearest one-eighth percent). Consolidation gives you up to 30 years to repay your loan. Keep in mind that increasing the repayment period also increases the total amount of interest you will pay over time.
You'll need to work with the Department of Education (Department) to get a Direct Consolidation Loan.
Before consolidating your loans, talk with your servicer about all of your repayment options. You can learn more about the pros and cons of loan consolidation at the Department's website.
Most federal student loans, including subsidized and unsubsidized Direct and FFELP Stafford Loans, are eligible for consolidation. Private education loans are not eligible to be consolidated with federal student loans. Also, if your loans are in default (270 days or more past due), you must meet certain requirements prior to consolidating them.
You'll need to work with the Department of Education to get started. Apply online or print an application at LoanConsolidation.ed.gov or call 800.557.7392 (U.S.) or 334.206.7400 (International) for an application package.
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