Nelnet Bank is one option for refinancing medical school loans, especially for physicians who already have solid credit and income. At the same time, it is not always the most flexible choice for residents or borrowers who want federal protections. This review walks through how Nelnet Bank refinancing works, who it is best for, and what to watch out for before you decide.
If you want to see how Nelnet Bank compares to other lenders for physicians, you can also check your rates with LeverageRx and see if refinancing makes sense for your situation.
About Nelnet Bank
Nelnet Bank was launched in 2020 by Nelnet, one of the largest student loan servicers in the United States, in partnership with other financial institutions. Nelnet has more than forty years of experience in student lending and holds an A+ rating from the Better Business Bureau, which helps support Nelnet Bank’s credibility as a newer brand.
While Nelnet Bank itself is relatively young, it benefits from its parent company’s servicing infrastructure and familiarity with federal and private student loans. Nelnet Bank focuses on private student loans and refinancing, including options for graduate and professional degrees.
Student Loan Refinancing Basics
Nelnet Bank offers student loan refinancing in forty nine states and Washington, D.C. Vermont is currently excluded.
You can refinance both federal and private student loans, including many types of graduate and professional school debt. Parent loans can also be refinanced, and in some cases a Parent PLUS or private parent loan can be transferred into the student’s name if the student is the primary applicant.
Key structural details:
- Loan terms: Typically 5, 7, 10, 15, 20, or 25 years, with longer terms generally available for larger refinance balances.
- Loan amounts: Minimum refinance amount is usually 5,000 dollars, with maximums up to 500,000 dollars depending on degree type.
- Repayment: Full principal and interest payments start about 30 to 45 days after disbursement. Nelnet Bank does not offer an in school grace period for refinanced loans.
- Rates: Both fixed and variable interest rates are available, and you can reduce your rate slightly by enrolling in automatic payments.
- Fees: Nelnet Bank does not charge application, origination, or prepayment penalties. Late fees may apply if you miss payments.
Like any private refinance, moving federal loans to Nelnet Bank means you give up federal benefits such as income driven repayment plans and federal forgiveness programs.
Student Loan Refinancing Eligibility
To qualify for student loan refinancing with Nelnet Bank, you generally need to meet the following requirements:
- Be a U.S. citizen or permanent resident with a valid Social Security number
- No longer be enrolled at least half time and have loans in grace or repayment
- Refinance at least 5,000 dollars in eligible student loans (more for some degree types)
- Meet Nelnet Bank’s minimum income standards
- Have a solid credit profile, typically a good or very good credit score, with no recent defaults or bankruptcies
- Have loans that were used to attend a Title IV eligible school
If you do not meet all the criteria on your own, you can apply with a cosigner who has stronger credit and income. Nelnet Bank allows cosigner release after a period of on time payments, which can help your cosigner step off the loan later while you keep the refinance.
Benefits of Refinancing With Nelnet Bank
Here are some of the main advantages that may matter to physicians and other medical professionals:
- Large Maximum Loan Amounts
Nelnet Bank’s maximum refinance limit can be as high as 500,000 dollars for certain graduate and professional degrees. This can be helpful for physicians who carry a mix of federal and private loans from medical school and training. - Longer Repayment Terms Available
In addition to common 5, 10, and 15 year terms, many borrowers can choose 20 or even 25 year terms for larger balances. Longer terms lower your monthly payment, which can help cash flow early in your attending years, although you will pay more interest over time. - Unemployment and Hardship Protection
Nelnet Bank may offer up to twelve months of hardship forbearance over the life of the loan for events such as job loss or medical issues. During forbearance, payments are paused, although interest continues to accrue. - Cosigner Release Option
If you need a cosigner to qualify, Nelnet Bank offers a path to remove the cosigner after a set number of on time payments, as long as you still meet the credit and income standards on your own. - No Required Degree for Some Borrowers
In certain cases, Nelnet Bank will consider borrowers who did not complete their degree, as long as they meet other credit and income requirements. This can help borrowers who left school but still want to refinance at a better rate.
For many physicians who are already in stable attending roles, these features can create a straightforward way to simplify multiple loans into one payment and potentially reduce the total cost of borrowing.
Cancellation in the Event of Death or Disability
Nelnet Bank has policies that may cancel a refinanced student loan if the borrower dies or becomes totally and permanently disabled.
- If the borrower dies, Nelnet Bank can discharge the remaining balance once it receives acceptable proof of death.
- If a cosigner dies, the cosigner can be removed from the loan while the borrower remains responsible for repayment.
- For disability, Nelnet Bank may allow cancellation if you provide documentation of total and permanent disability, often tied to determinations from agencies such as the Social Security Administration or the Department of Veterans Affairs.
Exact rules and documentation requirements can change, so borrowers should review current terms directly with Nelnet Bank before relying on discharge or cancellation language.
Key Takeaways
Nelnet Bank can be a solid refinance option for physicians who have strong credit, steady income, and high medical school loan balances, especially if they want long repayment terms and the ability to release a cosigner later. On the other hand, you give up federal loan protections and the hardship support is more limited than federal programs, so it is important to compare offers from multiple lenders and think about your long term career plans before you refinance. If you are weighing Nelnet Bank against other options, you can check your rates with LeverageRx and see how different refinance offers stack up for your situation.
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