Nelnet offers private student loans through Union Bank and Trust called U-fi loans. U-Fi private student loans are available to undergraduate, graduate, MBA, law, and health professions students.
As with other private loans, it’s recommend to explore your federal loan and grant options (such as Stafford Loans and Pell Grants) before pursuing private loans. In comparison, federal loans offer a number of benefits.
Such benefits include subsidized loans, income-based repayment plans, loan forgiveness options, and loan deferment options. However, there are limits to how much money you can borrow each year via Stafford loans, and you may need to supplement that amount with private loan money.
U-fi Nelnet Student Loans
Automatic Payment Discount: Have 0.25% of your interest rate knocked off when you enroll in auto debit repayments. These payments must be full and drafted from a bank account to qualify.
Fees: U-fi student loans don’t come with any application, origination, or prepayment fees.
Minimum Loan Amount: $1,000
Maximum Loan Amount: $125,000 for undergraduate degrees; $175,000 for graduate, doctorate, MBA, and law degrees; and $500,000 for graduate health professions degrees.
Loan Terms Available: 5, 10, 15, 20, and 25 years. 20-year terms are only available for terms of $25,000 or more and 25-year terms are only available for variable rate loans of $25,000 or more.
Cosigner Required: You will need a cosigner on your loan if you don’t meet age, creditworthiness, employment, and/or income eligibility requirements on your own. Cosigner release is available to those that have made 24 consecutive on-time payments on their loan. To qualify, you must show that you will be able to assume full responsibility for the loan yourself for the rest of its life.
To qualify for a student loan without a cosigner, you’ll need to be a U.S. citizen or permanent resident enrolled at least half-time at an eligible school, have a credit score of at least 680, have an annual income of $36,000 or more, and have no history of either defaulted loans or bankruptcy on your credit.
U-fi from Nelnet Repayment Options
- Immediate repayment: Begin making fixed monthly payments on the full principal and interest of your loan as soon as it is disbursed.
- Deferment: Wait to make any principal or interest repayments until after you graduate, up to 78 months after your loan is initially disbursed.
- Interest-only repayment: Make payments on just your loan’s interest while still in school.
Grace Period: The grace period for U-fi from Nelnet loan repayment is six months after graduation for undergraduate loans and nine months after graduation for graduate loans. Also, if you drop below half-time enrollment, your grace period will begin automatically.
Forbearance: You might qualify for forbearance if you are experiencing financial hardship, work an internship, or perform certain types of community service that prevent you from being able to make your loan repayments on time or in full. If you are eligible for forbearance, just know that your loan will continue to accrue interest even while due dates are paused.