Skip to content

FAQs: Borrower Payments

February 2, 2012

As a Direct Loan servicer, Nelnet’s Partner Solutions team receives questions from the school financial aid and borrower community on a regular basis.  In an effort to share the information and educate our school partners, we are posting to our blog some of the more relevant and well-timed questions that we receive.  The following four questions are ones that we receive frequently regarding borrower loan payments.

Q:  When a borrower mails a check, do they have to make two payments if they have both a FFEL and federally owned loan on Nelnet’s system?

A:  Yes, if the borrower is mailing their payment.  For timely processing, borrowers will need to mail their payments to the payment address indicated on their statement.  Commercial loans have a  different payment address than ED-owned loans.

If a borrower is going to make a payment via, the borrower will only need to make one payment, and the payment will be applied to all Nelnet commercial and ED-held loans serviced at Nelnet.

Q:  When a borrower pays utilizing the Nelnet IVR system, do they have to make two payments if they have both a FFEL and Direct Loan?

A:  No.  A borrower who has loans serviced by Nelnet will only need to make one payment through the IVR for all of their Nelnet-serviced loans. Nelnet will automatically split the payment and apply it to their federally owned and commercially owned loans.

Q:  Does Nelnet charge a fee to a borrower making a payment over the IVR system?

A:  Department of Education borrowers can make checking/savings account payments through the IVR system with no fee.  Borrowers can make a payment on commercial loans over the IVR system as long as they have a payment due within the next 30 days.  There is s $6 service charge for making a payment over the IVR for commercial loans.  ED and split borrowers are not charged a fee for this service.

Q:  Can borrowers specify to which loans their payments should be applied?  For example, can they specify to have their full payment applied to their higher interest rate loan?

A:  Yes.  A borrower can apply payments to their specifications.  Payments must first cover any delinquent amounts before additional funds can be applied to different loans.


Do you have more questions regarding borrower payments or any other topic?  If so, please let us know so we can help you as well as others in the school community who may be wondering the same thing!

Alan Ishida - Regional Director, Nelnet Partner Solutions (CO, HI, Guam, IA, WI, WV)

No comments yet

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: