Applying For A Student Loan Through Nelnet

Nelnet helps student and their family’s access funds to help pay for post-secondary education. Here is a brief overview of the student loans offered by Nelnet:

Undergraduate Student Loans

Student entering a two or four year post-secondary program can apply for a Stafford Federal Student Loan through Nelnet. These loans are need-based and are repaid over a 10-year period. Stafford student loans offered by Nelnet as well as other lenders can be subsidized by the government. This means that while the student is attending school, the interest owing on the loan is paid by the federal government.

Those individuals who don’t have their loan subsidized are responsible for paying the interest accrued during the time they are in school. They can, however, make arrangements to have the interest payment deferred until after graduation.

Parents of students can apply for a PLUS loan. Nelnet offers PLUS student loans, as well. These loans are not based on financial need and are designed to bridge the gap between other types of financial assistance and the cost of a college education. If undergraduate students or their families don’t qualify for either one of these programs or need further financial assistance, they have the option of applying for a private loan. Private loans are based on the applicant’s credit history, not on financial need.

Keep in mind that with federal student loans, fees will be deducted from the amount of money the student actually receives. The lender of the student loan (Nelnet) will deduct a percentage as a fee. In addition 1 per cent of the amount borrowed is deducted from the proceeds as a federal default fee.

Applying for Graduate or Professional School Loans

Graduate students are eligible to apply for funding under the Stafford student loan program. The maximum amount that can be borrowed each year is capped at a certain amount. Graduate students are able to borrow more money per year than undergraduate students. PLUS and private loans are also available for those wishing to attend graduate or professional schools. These loans are generally paid back over a period of up to 10 years.

Without some form of financial assistance, many students and their families would be unable to cover the ever-increasing cost of a post-secondary education. Lenders such as Nelnet provide student loans to assist these individuals in reaching their educational goals and career dreams.