Frequently Asked Questions

Simple:

• Never worry about a misplaced statement.
• No need to waste time and space storing your paper statements at home—My Secure Messages electronically files them for you.
• Receive your information easily while you are already online.

Safe:

• As part of our password-protected, secure Web site, your confidential account information is protected from tampering or theft.

Smart:

• All of your Nelnet statements and account information are available at your fingertips wherever you have Internet access, including your mobile devices.
• It’s good for the environment—eliminating paper statements saves trees and reduces waste.
• Always have access to your account information in real-time.
• Quick and easy access to make a payment online.
   

When a new message has been delivered to your My Secure Messages inbox, Nelnet will send an e-mail to the e-mail address on file for your account. Every e-mail will include a link to the Manage My Account login page. After logging in with your username and password, you will be directed to your My Secure Messages inbox, which will allow you to quickly and securely view your statements and other correspondence online.  

Many e-mail account providers allow you to create a personal and secure (with a user name and password you create) e-mail account for free. You may go to one of these providers’ Web sites and follow their instructions to create your own e-mail account. Some examples of popular e-mail account providers are:

If your personal e-mail address is ever undeliverable or removed from your Nelnet account, no e-mail notifications will be sent; however, messages will still be delivered to your My Secure Messages inbox. This is why it is essential keep a valid e-mail address on file at all times. To avoid late fees and keep your account current, you must continue to make your monthly payments on time and can easily do so from My Secure Messages after you log in to Manage My Account.  

Each time you log in to Manage My Account, you will be prompted to verify and update your contact information. Please be sure to verify that your e-mail address is correct. Any changes to your contact information will be updated in our system in at least one hour. If you have recently changed your contact information and need to make additional changes, please wait at least one hour before updating your contact information again.  

If your personal e-mail address is ever undeliverable or removed from your Nelnet account, no e-mail notifications will be sent; however, messages will still be delivered to your My Secure Messages inbox. If late payments are received, a late fee may be charged, even if you don’t receive an e-mail notification that your statement is available in My Secure Messages. This is why it is essential keep a valid e-mail address on file at all times.

If for any reason your monthly statement message is not available in your My Secure Messages inbox, you are still responsible for making on-time payments and can easily do so using services provided within Manage My Account. 

Statements and correspondence are only provided online through My Secure Messages to student loan borrowers. Co-makers and endorsers will receive their correspondence from Nelnet via mail. If you are a co-maker/endorser on a borrower's account, but you have your own Nelnet account as a borrower, you will recieve statments and correspondence online through My Secure Messages only for the account on which you are the borrower.

If you were enrolled in eCorrespondence, statements and messages sent to you after March 31, 2009 will be stored in your My Secure Messages inbox for 12 months, after which time they are removed. To retain your statements and messages prior to the end of the 12-month time frame, you may save them to your computer, a CD, a flash drive, or a floppy disk.  

If you enrolled in electronic correspondence on Nelnet’s Web site before March 31, 2009, a message in your My Secure Messages inbox will provide a link to allow you to access your previously available statements and correspondence from Nelnet.

If you have Nelnet loan and you did not enroll in electronic correspondence on Nelnet’s website before March 31, 2009, your previous Nelnet correspondence is not available online. However, you can view, save, and print your most recent six monthly statements by clicking “Make a payment.” A new Nelnetpay window will appear (be sure pop-up blockers are turned off). Click “View Accounts” and then select “Statement history” from the “Account Actions” drop-down menu on the right to view your six most recent monthly statements.

Once you delete an e-mail from your My Secure Messages inbox, it cannot be restored. For that reason, please be cautious when deleting messages.  

Paying your student loan has never been easier with Nelnet’s convenient payment methods:

Nelnetpay or EDPay—Did you know you can make your student loan payment online from your checking or savings account? All statement messages in your My Secure Messages inbox provide a link to make a payment online through Nelnetpay for your Nelnet loans and EDPay for your Department of Education loans.

• Making a payment is fast, easy, and free with Nelnetpay and EDPay through Manage My Account.
• Simply click the “Make a Payment” button in My Secure Messages to get started.
• There’s no need to pay postage and wait for your payment to reach its destination through the mail.
• Payments made before 4:00 p.m. (Eastern) on business days will be posted the same day. Payments made after 4:00 p.m. (Eastern) or on weekends and holidays will be posted the next business day.

KwikPay—You may choose to have your monthly payments auto-debited from your checking or savings account by signing up for KwikPay.

• This convenient, simple payment option saves you time and money and offers you the peace of mind that comes with knowing that your student loan payments are being made in an accurate and reliable manner.
• Payments made via KwikPay will be posted on your due date or the next business day in the event of a holiday or weekend.
• To sign up for KwikPay, log in to Manage My Account and select “Enroll in Auto Debit Payments.”

If you choose to mail your payments, you must include the bottom portion of your monthly statement with your check. To do this, you can access My Secure Messages, locate your current statement, and print it. Detach the bottom portion of your statement and mail it with your check to the address provided on your statement. If you receive multiple statements, it is necessary to mail in your payment with the payment coupon on the bottom of your statement(s), so please ensure that the coupon is in your envelope before sealing it. For timely process of your payment, please also make sure that the payment is mailed to the address located on your payment coupon.   

IMPORTANT: If you have both Nelnet-serviced and Department of Education-owned loans, you must make your payments separately to the address shown on each statement in order to have them applied correctly to your loans.

Your parent(s) or a third party can quickly and easily make a payment on your account through Nelnetpay, Nelnet’s free, online payment system. An authorized payer can make payments, but they do not have access to any of your account information or messages. You only need to follow a couple of easy steps one time to set your parent(s) or a third party up as an authorized payer:

1. After you have logged in to Manage My Account, click “Make a Payment” under “Repayment Options.”
2. Select "Authorize payers" from the menu on the left to set up a user name and password for anyone you would like to be an authorized payer on your account.

If you desire to provide paper copies of your Nelnet statements and correspondence to your parent(s) or a third party, you may simply print the statements from your “My Secure Messages” inbox.  

Nelnet has provided you a free inbox to access your Nelnet statements and correspondence in one convenient, secure online message center. Now, no matter where you are or what your address is, your Nelnet student loan account information is quickly available at a single, secure location. The benefits are numerous: 

Simple:

• Never worry about a misplaced statement.
• No need to waste time and space storing your paper statements at home—My Secure Messages electronically files them for you.
• Receive your information easily while you are already online.

Safe:

• As part of our password-protected, secure Web site, your confidential account information is protected from tampering or theft.

Smart:

• All of your Nelnet statements and account information are available at your fingertips wherever you have Internet access, including your mobile devices.
• It’s good for the environment—eliminating paper statements saves trees and reduces waste.
• Always have access to your account information in real-time.
• Quick and easy access to make a payment online.

If you desire to have paper copies of your Nelnet statements and correspondence for your personal files, you may simply print them from your My Secure Messages inbox.

If it is necessary for you to have your Nelnet statements and correspondence mailed to your personal address, you may contact a Nelnet advisor to discuss your options.

Enabling your cookies allows you to use the functionality of the “Back” button on the Nelnet website and allows Nelnet to recognize your personal computer as a trusted computer.

We have provided instructions for setting up cookies on Firefox and Internet Explorer Internet browsers below. Please keep in mind that browser versions vary, so these instructions might not be the exact steps you need to take for your personal setup. If we have not provided accurate guidance for your personal browser, please refer to the help information available on your menu bar.

How to accept cookies:

Firefox

1. Open your Internet browser.
2. Select “Tools” from the menu bar.
3. Select “Options.”
4. Click on the “Privacy” icon.
5. Under the “Cookie” section, ensure that both boxes for accepting cookies are selected.
6. Click “OK.”

Internet Explorer

1. Open your Internet browser.
2. Select “Tools” from the menu bar.
3. Select “Internet Options.”
4. Click on the “Privacy” tab.
5. Ensure that the settings are set to medium-high or lower.
6. Click “OK.”

Nelnet values your privacy. In an effort to retain the security of your information online, Nelnet has provided an additional layer of protection by having you pre-define answers to security questions and select an image that shows on certain web pages so you’re confident you’re logging into a legitimate Nelnet site. You may also designate your personal computer as a trusted computer.

Completing the security setup process is easy and only takes a few minutes. After you have entered your user name and password, you will be prompted to begin the security setup. You'll select and answer three (3) security questions. You will select these questions from a list that we display. After you've selected and answered your security questions, you will then choose an image from among a number of options randomly selected to display on your screen.

If you are unable to complete the security setup after reading through these questions and answers, you may call Nelnet for assistance toll-free at 1.888.486.4722.

Yes. After you have completed the security setup, you will be prompted to enter your user name and password in order to log in to Manage My Account in the future.

This allows Nelnet to confirm your identity before allowing you access to your online account information. If you log in to the Nelnet website from a computer you have not designated as a trusted computer, you will be asked to answer one of your three selected security questions.

You will be asked to select three of the 10 displayed questions and provide answers to help Nelnet verify your identity during your future sessions on Manage My Account.

If you log in to the Nelnet website from a public computer or one you have not designated as a trusted computer, you will be asked to answer one of your three selected security questions successfully before gaining access to your Nelnet online account.

If you fail to answer your question correctly, you will have two (2) more opportunities to answer that question. After three (3) unsuccessful attempts at answering that question, you will be prompted to answer a second question. Again, you will be allowed three (3) attempts to answer the second question.

If you are having difficulty remembering the answers to your security questions, you may contact Nelnet at 1.888.486.4722 to have your image and/or security answers reset.

If you are unsuccessful after six (6) total attempts to answer your two security questions, your account will be locked to protect your security. At that time, you will need to contact Nelnet at 1.888.486.4722 to have your image and security answers reset.

This image is used during the login process to verify that you are logging in to a legitimate Nelnet website, so Nelnet needs you to choose an image that you will remember.

You will see the image you selected during the security setup process every time you log in to Manage My Account so you can be confident that you are logging in to a legitimate Nelnet website.

When a computer is selected as a trusted computer, Nelnet associates that computer with the person logging in so that Nelnet can quickly recognize the individual and that person can ensure that they are logging in to a legitimate Nelnet website. A public computer may be shared by multiple people, some of whom you may not know. Therefore, only select a private computer shared by people whom you trust as a trusted computer to ensure your security when online at Manage My Account.

Yes. Once you have logged in to Manage My Account, click “Change My Password/Update My Security Information” from the main menu. You will have the opportunity to change your password, security questions, and/or image.

Each time you log in to Manage My Account, you will be prompted to verify and update your contact information. Any changes to your contact information will be updated in our system in at least one hour. If you have recently changed your contact information and need to make additional changes, please wait at least one hour before updating your contact information again.  

Both programs have the same general terms, conditions, and loan limits. Some differences include repayment plans, borrower benefits, loan forgiveness programs, and interest rates. The primary difference between the two loan programs is that the federal government funds the FDLP and private lending institutions fund the FFELP. 

Yes, Nelnet sends monthly account statements approximately 21 days before your due date.

No. During a period of time when your loan(s) is in any one of these statuses, you are not required to make a payment. However, you may make payments on your loan(s) at any time in order to reduce your balance.

Nelnet reports credit information to the four national credit bureaus (Innovis, Experian, Transunion and Equifax) on a monthly basis. Delinquency is reported when an account becomes 90 days past due. Until the account reaches that mark, the account is reported as current. Once you have been reported to the credit bureaus, this information can remain on your credit history for seven to 10 years.

Account numbers are assigned to your account when your loans are loaded into our servicing system. An account number is assigned to each of your loans is to protect your identity when correspondence is sent to you regarding your loan(s). 

You may have multiple account numbers to ensure that you have the ability to conveniently gather information regarding your loans. Your account number will be displayed on all correspondence and will also be securely displayed to you when you access your account online.

It is possible that Nelnet owns your student loan, although we also service loans for many other lenders.

If you encounter hardship or are concerned that making your payments may become difficult, contact your lender immediately while you can still take advantage of other options that may be available to you.

A person, financial institution, government unit or educational institution that receives interest payments of $600 or more during the year on one or more qualified education loans must furnish this information to you. This information is also reported to the IRS. Nelnet chooses to provide this information to you even if it is less than $600.

You may be able to deduct the student loan interest you paid in the previous year on your income tax return. However, you may not be able to deduct the full amount of interest reported. Nelnet Advisors are not trained to address federal tax issues. For more information regarding what is deductible, contact your tax advisor or see IRS Publication 970 “Tax Benefits for Education” and “Student Loan Interest Deduction Worksheet” in your Form 1040 or 1040A instructions.

Federal regulations require that we provide your Social Security Number on the IRS Form 1098-E. Your Social Security Number will be removed from your monthly statement once the tax information is no longer displayed.

Most student loans (including all federally guaranteed loans) use a method of interest accrual known as "simple interest." The difference between simple interest and compound interest (the type of interest that accrues on most major credit cards) is that simple interest is only calculated on the principal balance, not on the previously accrued interest.

To calculate your daily interest accrual, the following formula should be used:
(Current Principal Balance x Interest Rate) ÷ 365.25

Translated, this equation means that your current principal balance would be multiplied by the interest rate and then the product would be divided by 365.25 (the number of days in one year). The result of these calculations could then be multiplied by a specific number of days to determine how much interest would accrue in a specific time frame.

Example:
• Current principal balance: $10,000.00
• Interest rate: 5.750%
• Days of interest needed: 30

Using the formula shown above, we can easily calculate the 30 day interest accrual:

[(10,000 x .0575) ÷ 365.25] x 30 = 47.22780

There are two types of fees that could potentially be added to your federal student loan: late fees and returned payment fees.

Late fees: Most lenders charge a late fee if you do not remit your payment on time. These fees are usually charged as a percentage of the scheduled monthly payment. Most lenders provide for a grace period prior to charging a late fee. For example, if the lender’s grace period is five days, a late fee would be charged six days after the payment is due if a payment has not been received.

Returned payment fees: Most lenders charge a fee if your bank returns your payment for any reason and does not honor it. Some of the reasons a payment may be returned are insufficient funds in the specified account, bank unable to locate account or a stop payment order has been placed upon a check or payment.

During periods when a payment is not required to be made on a loan, interest continues to accrue or build on the principal balance of your loan. When this is unpaid, accrued interest is usually “capitalized” when the loan goes into repayment; it is added to the principal balance of your loan, which increases the total outstanding balance due.

Because interest continues to accrue on the outstanding principal balance if a payment is not made, any future interest that accrues will be based on the new outstanding principal amount (previous principal balance plus capitalized interest). Therefore, capitalization increases the total cost of your loan.

You can avoid the cost of capitalization by making payments during any period when they are not due. For certain Federal Family Education Loan Program (FFELP) loans (i.e. unsubsidized Stafford, Parent PLUS and GradPLUS), federal law permits unpaid interest to be added (“capitalized”) to your principal balance at certain points or milestones during your loan term. These points or milestones where unpaid interest may be capitalized can include after your grace period, at the end of deferment, no more frequently than quarterly during forbearance and at the end of forbearance.

For private loans, law permits unpaid interest to be added to your principal balance (capitalized) at the frequency stated to you in the promissory note that you sign.

Yes, your statement is generated approximately 21 days prior to your due date.

If you return to school, it is your responsibility to make sure we have your enrollment information. Although you may have notified us that you are in school, we are required to collect payments from you until your school confirms the information by completing a deferment form or enrollment verification form. Once the completed deferment/enrollment information is received from the school, we can update your account status.

If your loans are in one of the statuses in which statements are not normally sent (grace, deferment, forbearance, or in-school status), you will receive a statement in July to notify you of the change in interest rates and one in January to provide you with your tax information for the previous year.

You are considered delinquent the day after your payment was due.

For example: If your payment was due on May 15, 2008 and we don’t receive your payment, you are considered delinquent as of May 16, 2008.

The Federal Family Education Loan Program requires us to continue to contact you by phone and through mail until your account is current.

When we have an incorrect address or phone number on file for you or your account is delinquent, we are required by the Federal Family Education Loan Program to reach you to resolve the delinquency or get updated demographic information. Your guarantor is also notified of the delinquency and will attempt to reach you by telephone or mail.

It is important that we protect our customers' information and guarantee their privacy. We want to ensure we have the most current information and make certain that we only discuss account detail with the correct parties associated with your loan(s).

When you completed your Federal Family Education Loan Program application you listed several personal references. When we do not have a valid telephone number or valid mailing address, we will contact your listed references by mail or telephone to obtain correct information. Your references will not be contacted if we have your current telephone number and mailing address.

Statements are available online about three weeks prior to your payment due date.

Your current principal balance does not include the accrued interest currently due on your loan. When paying your loan balance in full, you need to satisfy the accrued interest. The 10-day payoff figure includes all accrued interest currently due on the loan plus 10 days of future interest (to allow for mailing time). If the payoff is not received within 10 days, you may need to send an additional payment.

Paying your student loan has never been easier with Nelnet’s convenient payment methods. Nelnet offers numerous payment choices that match your preferences. Whether you prefer to pay online, set up recurring payments or pay by check, Nelnet has the solution you need.

It takes approximately two (2) business days to process an online payment.

Per regulations, all payments are applied to fees first, then interest, and finally principal unless your current repayment plan is Income-Based Repayment. In this situation, your payments would first be applied to interest, then to fees, and finally to principal. If you send in a payment greater than the minimum amount due, the additional amount will be applied to your principal balance after all outstanding interest is paid.

Yes. You can pay any amount above what is due.

It takes approximately two (2) business days to debit your bank account.

No, but you may view your statement by clicking “My Secure Messages” from your Manage My Account menu.

By clicking “Scheduled Payments” from the Nelnetpay or EDPay menu on the left, you can view or cancel your currently scheduled payments. Payments must be cancelled before 4:00 p.m. (Eastern) on the date they are scheduled to be made.

When you click “Transaction History” from the Nelnetpay or EDPay menu on the left, you can see all of the payments you have made. Please note that only payments made through Nelnetpay are shown here. If there is a large red “X” next to any of them, this means a payment was returned and not honored by your bank.

KwikPay is a payment method that automatically deducts your monthly payment from a checking or savings account that you designate. This convenient, simple payment option saves you time and money and offers you the peace of mind that comes with knowing that your student loan payments are being made in an accurate and reliable manner.

The first debit date depends on your current monthly due date and the date you are signing up for KwikPay. If your current due date is within 15 days of the date you are signing up for KwikPay, your first debit will occur the following month. If your current due date is greater than 15 days from the date you are signing up for KwikPay, your first debit will occur on your current due date.

Example: If today is June 1, 2008, and your due date is June 15, 2008, KwikPay will debit on July 15, 2008. If today is June 1, 2008, and your due date is June 20, 2008, KwikPay will debit on June 20, 2008. You will receive information when signing up electronically and/or a confirmation letter that indicates the first debit date. You are responsible for remitting payments until that date.

Yes. In most situations an interest-capitalizing hardship forbearance will be placed on your account to bring it current prior to the first debit occurring. However, you will not be eligible for a forbearance if you have a private or alternative student loan or have used 60 months of forbearance time (for loans with some lenders). You will receive notification if your account has been set up for KwikPay or if your account did not qualify for KwikPay.

Yes. However, your first debit will not occur until the next payment due date. If you choose, you can select the override option, which will debit your regular monthly payment amount during periods of deferment or forbearance.

Yes. However, your first debit will not occur until a regular payment amount is set for your account. This occurs typically six (6) months after graduation or separation from school.

Yes. You may request an alternative payment amount when you sign up for KwikPay. The payment amount must be greater than the current installment amount. The application you complete will prompt you to select this option and to provide the amount of the alternative payment.

Note: In most cases, choosing an alternative payment amount will cause your due date to advance greater than one month, and KwikPay will not debit until your account is actually due. To ensure your account debits each month, even if it is paid ahead, select the override option when you are signing up for KwikPay.

Yes. By choosing the override option when completing the KwikPay application, your monthly payment will be debited even if your account is paid ahead or is in a deferment or forbearance status. This is a great option if you are trying to pay off your student loan ahead of schedule.

KwikPay is convenient, safe and secure. This simple payment option saves you time and money and offers you the peace of mind that comes with knowing your student loan payments are being made in an accurate and reliable manner each month.

There are no service fees for using KwikPay. In addition, you don’t need to use stamps or a check, which saves you time and money and preserves our natural resources.

Yes. Your name and account number must be on the authorization form. The person who is making the payments must sign the form and provide all of the necessary banking information.

The payment will be deducted the next business day.

If a payment is not honored by the bank due to insufficient funds, you will be charged an insufficient funds fee of up to $25. Two occurrences of insufficient funds within 12 months may result in the termination of your KwikPay agreement, additional fees and/or loss of an interest reduction incentive. You must make six (6) on-time payments in order to sign up again.

Per regulations, all payments are applied to fees first, then interest, and finally principal unless your current repayment plan is Income-Based Repayment. In this situation, your payments would first be applied to interest, then to fees, and finally to principal. If you send in a payment greater than the minimum amount due, the additional amount will be applied to your principal balance after all outstanding interest is paid.

No. Payments are distributed across all of your active loans in repayment.

KwikPay is able to debit a final payment even if the amount is less than the regular monthly amount. It will automatically calculate and debit the last and final payment.

Special instruction payments should be made when:

1. You would like your payment applied in a specific way other than it would normally be applied.*
2. You would like to adjust your due date to remove the paid-ahead status.*
3. You would like to pay off any or all loans.

*Special instructions must be submitted each month you want them to be applied other than normal or the payment will not be applied as requested.

A request to have the payment applied only to your loan(s) and/or group(s) with active balances remaining does not require a special instruction.

In a separate envelope please mail your payment, account number and/or payment coupon and special instruction request to the following address for Nelnet loans:

Nelnet
P.O. Box 82501
Lincoln, NE  68501-2501

If you mail your payment with a special request to our regular payment address (P.O. Box in Omaha, Nebraska), please be sure to check the box on the front of your payment coupon indicating you have a special request. Allow 5 to 10 days for your special request to be processed.

Payments for Department of Education-owned loans should be mailed to:

Department of Education
P.O. Box 740283
Atlanta, GA 30374-0283

IMPORTANT: If you have both Nelnet-serviced and Department of Education-owned loans, you must make your payments separately to the address shown on each statement in order to have them applied correctly to your loans.

If you are signed up for KwikPay with the override option, your monthly payment will debit every month even if the due date is paid ahead. No special request is needed because your payment will automatically debit from your bank account every month.

If one or more of your loans is past due (delinquent), we will not be able to honor your special payment instruction request. The payment must be applied across all delinquent loans to bring all as current as possible.

If the group or loan to which you have requested the payment be applied was previously paid in full, consolidated or not found, the payment will be applied to any remaining loans with active balances.

Per regulations, all payments are applied to fees first, then interest, and finally principal unless your current repayment plan is Income-Based Repayment. In this situation, your payments would first be applied to interest, then to fees, and finally to principal. If you send in a payment greater than the minimum amount due, the additional amount will be applied to your principal balance after all outstanding interest is paid. Nelnet cannot apply payments in a way that does not conform to those regulations.

For Nelnet loans, if “payoff” is noted on your payment and the amount received is not enough for a complete payoff, the payment will not be posted to your account. We will contact you to offer you a phone payment for the remaining balance. If no response is received within 48 hours, the payment will be returned to you.

For Department of Education-owned loans, if the payment you provide is not enough to pay your loans in full, the payment will be applied to your loans as normal and you will continue to receive statements from Nelnet until you make a payment(s) that pays the loans in full.

For Nelnet loans, since paying off the principal balance is not a payoff request (because the full amount of fees, interest and principal are due), the payment will be returned to you for being too short for a payoff.

For Department of Education loans, if the payment you provide is not enough to pay your loans in full, the payment will be applied to your loans as normal and you will continue to receive statements from Nelnet until you make a payment(s) that pays the loans in full.

If you encounter hardship or are concerned that making your payments may become difficult, contact your lender immediately to see what other options that may be available to you.

You will receive notification via a new repayment disclosure that shows your new repayment plan and payment amount.

No. Your repayment is a combination of both principal and interest. Therefore, the amount you repay each month will determine how quickly you repay your obligation, as well as the total interest that accrues on your loan. For example, if you lower your monthly payment, you will extend the repayment term and, thus, increase the total amount you pay back over the life of the loan.

Stafford and PLUS loans must be repaid within 10 years from the start of repayment. However, any periods of deferment, forbearance, in-school or grace will not count toward the 10-year repayment term. You may extend the repayment term if you qualify for the extended repayment plan.

On a consolidation loan, the repayment period may extend up to 30 years depending on the initial balance of the loan. Please review your repayment disclosure for information on the term of your loan.

A grace period is the time period allocated after a student finishes school or drops below half-time enrollment and before it is necessary to begin repayment on their student loans. The grace period for a Stafford loan is usually six months. Effective July 1, 2008, ParentPLUS loans disbursed on or after July 1, 2008, will also have an optional six month grace period. Please review your promissory note for grace period information.

You may change your repayment option to another whenever you want. Please note, however, that the availability of some repayment options may vary, depending on the outstanding loan balance, interest rate and repayment term remaining.

No. The type of repayment plan used to repay a student loan is not reported to the credit bureaus. Using a deferment or forbearance for your student loans will not adversely affect your credit history. Making a late payment or not making a payment at all could impact your credit history.

Effective 10:00 p.m. (Eastern) on January 23, 2008, Nelnet no longer offers its customers the federal consolidation loan product.

If you are willing but unable to make payments, and do not qualify for a deferment, you may request forbearance. Forbearance allows payments to stop temporarily or decrease in amount for a specific length of time. Your lender may grant forbearance of principal, interest or both. You are always responsible for repayment of accrued interest charges. You can make interest-only payments, or the interest will be capitalized (added on to the principal) at the end of the forbearance period.

No. Deferment and forbearance do not count against the repayment term on you loan.

IMPORTANT: By using deferment and forbearance you may increase your principal balance on your student loan due to interest that is capitalized (added to the principal) during and/or at the end of your deferment or forbearance. You may make payments to cover accruing interest to avoid this. You are responsible for all interest that accrues on your unsubsidized student loans.

You should apply at least 30 days before you want the deferment or forbearance to start.

Nelnet will review your request for eligibility and ensure it is complete and that all supporting documentation (as needed) has been received. You will be notified via mail when your deferment or forbearance has been processed.

The maximum length of your deferment or forbearance will depend on your situation, the type of deferment or forbearance you have applied for and the attributes of your loan.