Why are my student loans with Nelnet?

Asked by: Garry Marvin  |  Last update: April 22, 2026
Score: 4.6/5 (55 votes)

Once you've taken out a federal loan, that loan is assigned to a loan servicer. Nelnet is a federal student loan servicer working on behalf of the U.S. Department of Education (ED), the government agency that lends you student loans.

Why does Nelnet have my student loans?

Federal Student Aid (FSA) is your federal loan provider. FSA uses servicers (private companies) like Nelnet to manage billing, questions, and payments, and to help you enroll in the best repayment plan for you.

Will student loans from Nelnet be forgiven?

You may be eligible for forgiveness of the remaining balance of your Direct Loans after making 120 qualifying payments on those loans while employed full time by a qualifying public service employer(s).

Why are my loans being transferred to Nelnet?

Why do loans get switched or transferred to a different servicer? Sometimes, we need to transfer loans from one servicer to another—for example, when a servicer's contract with us ends. Even if we transfer your loans to a new servicer, we (the U.S. Department of Education) still own your loans.

What is the Nelnet student loan scandal?

(Nelnet), one of the nation's largest federal student loan servicers, resolving allegations that the company failed to appropriately communicate with borrowers about renewing Income-Driven Repayment (IDR) plans that provide access to affordable payments.

What Everyone's Getting Wrong About Student Loans

36 related questions found

Is Nelnet loans federal or private?

Nelnet is a federal student loan servicer working on behalf of the U.S. Department of Education (ED), the government agency that lends you student loans.

Is Nelnet refunding student loans?

All payments on eligible loans made to ED will be refunded. Payments not made to the Department will not be refunded. This means you would no longer have to make payments on those loans associated with the school that misled you, and you may have some of your past loan payments refunded to you.

Why are my student loans suddenly paid off?

If your student loan balance is suddenly showing zero, some of the many reasons could be: Your federal student aid or private student loans were forgiven. You've completed one of the student loan forgiveness programs. You qualify for Public Service Loan Forgiveness (PSLF), or.

Why have my student loans disappeared?

Student loans disappear from credit reports 7.5 years from the date they are paid in full, charged-off, or entered default. However, education debt can reappear if you dig out of default with consolidation or loan rehabilitation. Student loans can have an outsized impact on your credit score.

Why did my student loans go from Great Lakes to Nelnet?

Great Lakes and Nelnet were previously separate loan companies. But later they collaborated with each other and both of them merged. Now all the loans taken by both of them were arranged serial wise and divided into two parts. This is the reason why many Great Lakes loans were transferred to Nelnet.

Is there a lawsuit against Nelnet?

The lawsuit (PDF) alleges that Nelnet (1) Breached the servicing agreement between Nelnet and the Federal Government. The class representatives who are student borrowers are intended third party beneficiaries of the breached contract.

How will I know if my student loan will be forgiven?

Your student loan servicer(s) will notify you directly after your forgiveness is processed. Make sure to keep your contact information up to date on StudentAid.gov and with your servicer(s). If you haven't yet qualified for forgiveness, you'll be able to see your exact payment counts in the future.

Which student loans are automatically forgiven?

Any borrower with ED-held loans that have accumulated time in repayment of at least 20 or 25 years will see automatic forgiveness, even if the loans are not currently on an IDR plan. Borrowers with FFELP loans held by commercial lenders or Perkins loans not held by ED can benefit if they consolidate into Direct Loans.

Will loans owned by Nelnet be forgiven?

Teachers with loans through Nelnet can pursue teacher loan forgiveness. Teachers may qualify to have a maximum of $17,500 or $5,000 in student loans forgiven, depending on the subject area taught, if specific requirements are met.

Can I trust Nelnet?

Nelnet has an A+ rating with the Better Business Bureau, but reviews say otherwise. The lender has a one-star rating and resolved around 700 complaints in the last year.

Is Nelnet now Mohela?

Great Lakes loans are now under Nelnet. All loans enrolled in Public Service Loan Forgiveness (PSLF) previously under FedLoan Servicing are now under MOHELA.

Will I be notified if my student loans are forgiven?

You'll be notified or see a $0 balance

From this point on, your days of making monthly student loan payments are over. That is, unless, only a portion of your debt is canceled. If you still owe a remaining balance, you will still continue to owe monthly payments. » MORE: Student loan forgiveness: What's getting fixed?

What is the 7 year rule for student loans?

Both federal and private student loans fall off your credit report about seven years after your last payment or date of default. You default after nine months of nonpayment for federal student loans, and you're not in deferment or forbearance.

What did Nelnet switch to?

Hi, if your Nelnet loans start with a D then they were transferred to Sloan Servicing.

Why did all my student loans disappear?

Do Federal Student Loans Ever Go Away? Federal student loans may come off your credit report either seven and a half years after the default or seven years after the loan was transferred to the Department of Education. In both cases, the strikes on your credit report will disappear only if you start to make payments.

Why are my Nelnet loans showing a zero balance?

If your student loan dropped to zero, it could be because your loan was transferred to a new servicer, or you qualified for student loan forgiveness.

What is going on with student loans?

The Supreme Court ruled we could not implement pandemic-related student loan debt relief, so we can't use your application from 2022. The new proposed regulations are different, and we're currently working to finalize their terms, including who may receive loan forgiveness.

Is Nelnet a federal loan?

Nelnet provides customer service for your Federal Direct Loan Program and Federal Family Education Loan (FFEL) Program loans that are owned by the U.S. Department of Education. Looking for your federal student loans from an account number that begins with E? Select the Nelnet Federal Student Loans button.

Why did I get a student loan refund check in 2024?

Why did my college send me a check? A refund check is money that is directly deposited to you by your college. It is the excess money left over from your financial aid award after your tuition and additional fees have been paid. Your college may send you a check or the money may be deposited into your checking account.

Do you have to pay back Nelnet?

After leaving school, you'll have six months before you're required to begin making payments—this is called a grace period for students with Direct loans, and is called a deferment for graduate or professional students with Grad PLUS loans. During this time, you should explore which repayment plan works best for you.