ELFI vs Nelnet: Student loan refinancing compared

ELFI typically offers lower rates for borrowers with excellent credit and high incomes, while Nelnet often provides broader eligibility options for borrowers with less established credit histories. For families, refinancing can improve monthly cash flow; for students, it’s about lowering lifetime interest and managing debt with confidence.

Choosing between refinancing lenders means balancing rate competitiveness against eligibility flexibility and borrower protections. Whether you are a parent managing Parent PLUS loans or a recent graduate consolidating debt, selecting the right lender requires looking beyond the advertised interest rate. This guide covers a detailed comparison of Education Loan Finance (ELFI) and Nelnet, examining their interest rates, eligibility requirements, borrower benefits, and application processes.

You will learn how each lender determines your rate, what terms are available to fit your budget, and which company offers the customer service model that best aligns with your preferences. By the end, you will have a clear decision framework to help you choose the option that best supports your financial goals.

ELFI and Nelnet: Lender overviews

Before diving into the numbers, it is helpful to understand who these lenders are and how they operate. Both companies are major players in the student loan space, but they come from different backgrounds that influence their approach to student loan refinancing.

Education Loan Finance, commonly known as ELFI, is a student loan refinancing and consolidation program offered by SouthEast Bank. Launched with a mission to empower borrowers through education and transparent financing, ELFI is known for its strong emphasis on customer service. Unlike many fintech lenders that rely entirely on algorithms, ELFI assigns a dedicated Personal Loan Advisor to every applicant. This means you have a specific point of contact to guide you through the process, which can be particularly reassuring for parents and graduates navigating complex financial decisions. ELFI refinances both private and federal student loans into a single new private loan.

Nelnet is a household name in student loans, primarily known as one of the largest federal student loan servicers in the country. Leveraging decades of experience in the industry, Nelnet has expanded its offerings to include private student loan refinancing, often through Nelnet Bank. Their approach combines the institutional stability of a major financial services company with modern digital tools. For borrowers who already have federal loans serviced by Nelnet, the brand offers familiarity and trust. Like ELFI, Nelnet allows borrowers to refinance existing federal and private loans into a new private loan, aiming to lower interest rates or adjust repayment terms.

While ELFI distinguishes itself with a high-touch, relationship-based model rooted in community banking, Nelnet leans on its massive scale and deep industry infrastructure to provide reliable, accessible lending options. Understanding these core differences helps set the stage for comparing their specific loan offers.

Interest rate comparison: ELFI vs Nelnet

For most borrowers, the decision to refinance comes down to one primary factor: the interest rate. Securing a lower rate is the most effective way to reduce the total cost of your loan. Both ELFI and Nelnet offer competitive fixed and variable interest rates, but their underwriting models—the way they decide your specific rate—can differ.

Source: ELFI and Nelnet websites (rates effective as of January 2025). Rates include autopay discount.

According to ELFI’s website, ELFI typically reserves its lowest advertised rates for borrowers with excellent credit scores (often 750+), stable employment, and a low debt-to-income ratio. Their underwriting is rigorous, designed to identify low-risk borrowers who can be rewarded with rock-bottom rates. If you or your cosigner have a strong financial profile, ELFI is often very hard to beat.

Nelnet also considers credit history and income but may offer slightly wider rate ranges that accommodate a broader spectrum of borrowers. While their lowest rates are competitive with top-tier lenders, their upper ranges allow them to approve borrowers who might not qualify for the absolute lowest rates elsewhere.

Both lenders offer fixed and variable rate options. A fixed rate remains the same for the life of the loan, providing predictable monthly payments—a priority for many families budgeting for the long term. A variable rate may start lower but can fluctuate with market conditions (specifically the SOFR index). According to Mark Kantrowitz, financial aid expert, “Private loans can offer variable interest rates, which may be lower than federal fixed rates initially.” This can be attractive for borrowers who plan to pay off their debt aggressively before rates have a chance to rise significantly.

Loan terms and repayment options

The length of your loan term is just as important as your interest rate. It determines your monthly payment amount and the total interest you will pay over the life of the loan. Both ELFI and Nelnet provide a variety of term lengths, allowing you to customize the loan to fit your current budget and long-term goals.

According to ELFI’s website, ELFI typically offers repayment terms of 5, 7, 10, 15, and 20 years. This granular selection allows borrowers to fine-tune their repayment timeline. For example, choosing a 7-year term instead of a 10-year term can save thousands in interest while keeping monthly payments more manageable than a 5-year aggressive plan.

Nelnet generally offers standard term options of 5, 10, 15, and 20 years as of January 2025. While slightly less granular than ELFI, these options cover the primary needs of most borrowers. A 5-year term is ideal for minimizing interest costs, while a 20-year term can significantly lower monthly payments, improving cash flow for young graduates or parents balancing other expenses.

Loan limits are another key consideration, especially for those with high balances from medical school, law school, or private universities.

• ELFI: According to ELFI’s website, ELFI allows borrowers to refinance loan balances starting at $10,000 up to the total cost of education, with no specific maximum cap for qualified borrowers. This makes ELFI a strong contender for professionals with significant debt.
• Nelnet: Nelnet typically requires a minimum balance of $5,000 to refinance as of January 2025, making it accessible for those with smaller remaining balances. Their maximum limits are also high, generally accommodating most undergraduate and graduate debt loads.

When selecting a term, remember the trade-off: shorter terms mean higher monthly payments but less interest paid over time. Longer terms offer lower monthly payments but result in a higher total cost of borrowing.

Eligibility requirements: Who qualifies?

Finding a lender with great rates is only the first step; you also need to qualify. Eligibility criteria vary between lenders, and understanding these requirements upfront can save you time and protect your credit score from unnecessary hard inquiries.

Source: ELFI and Nelnet eligibility guidelines (current as of January 2025).

ELFI is known for strict but transparent eligibility standards. According to ELFI’s website, to qualify, you generally need a credit score of 680 or higher and a minimum income of $35,000 as of January 2025. Crucially, ELFI requires borrowers to have completed their degree (bachelor’s or higher) from an approved Title IV institution. They do not currently offer refinancing for non-graduates or parents refinancing loans for students who did not graduate.

Nelnet has similar baseline requirements, typically looking for credit scores around 680 and income of at least $36,000 as of January 2025. Like ELFI, Nelnet generally requires the primary borrower to have graduated. However, Nelnet may have slightly more flexibility regarding debt-to-income (DTI) ratios depending on the overall strength of the application.

According to Betsy Mayotte, president of The Institute of Student Loan Advisors, “Private loans can make sense for students who have strong credit or a creditworthy cosigner.” If you are a recent graduate with a thin credit file, you may struggle to meet these income or credit score requirements on your own. In these cases, adding a creditworthy cosigner can be the key to approval and securing a competitive rate. For more details on what lenders look for, review our guide to private student loan requirements.

Cosigner policies and release options

For many students and recent graduates, applying with a cosigner is a necessity rather than a choice. A cosigner—often a parent or guardian—agrees to take equal responsibility for the loan, leveraging their credit history to help the primary borrower qualify. Both ELFI and Nelnet accept cosigners, but their policies on releasing that cosigner later differ significantly.

Cosigner release is a feature that allows the primary borrower to remove the cosigner from the loan agreement after meeting specific payment and credit criteria. This relieves the parent or guardian of financial liability and clears the debt from their credit report.

• ELFI: Historically, ELFI did not offer a cosigner release program, which was a notable drawback compared to competitors. However, policies can evolve, so it is critical to check their current terms. As of early 2025, ELFI typically requires the loan to be refinanced entirely into the borrower’s name to remove a cosigner, rather than offering a simple administrative release process. This essentially means applying for a new loan based on your own creditworthiness.
• Nelnet: According to Nelnet Bank’s website, Nelnet generally offers a clearer path to cosigner release. Borrowers can typically apply to release their cosigner after making 24 consecutive on-time full principal and interest payments. The primary borrower must also meet credit and income requirements at the time of the request to prove they can handle the debt solo.

For families, this distinction is vital. If a parent plans to retire or buy a home in the near future, having a clear cosigner release option (like Nelnet’s) ensures they aren’t tied to the debt for the full 10 or 20 years. If the borrower has excellent credit and doesn’t need a cosigner, ELFI’s policy may not be a concern.

Application process comparison

Applying for student loan refinancing has become increasingly digital, but the level of human support varies. Understanding the application workflow helps set expectations for how quickly you can access funds.

ELFI’s application process stands out for its “Personal Loan Advisor” model. When you start an application, you are assigned a specific advisor who serves as your point of contact throughout the entire process.

1. Prequalification: You submit basic information online to check your rate. This involves a soft credit pull, which does not impact your credit score.
2. Document Upload: If you like the rate, you upload documents (pay stubs, loan statements, ID) to their secure portal.
3. Advisor Review: Your advisor reviews your file, often reaching out personally to clarify details or help speed up approval.
4. Final Approval: Once approved, you sign documents electronically, and ELFI pays off your old lenders.

Nelnet offers a more traditional, streamlined fintech experience. The process is designed to be self-service and fast.

1. Rate Check: Similar to ELFI, you can check your rate in minutes with a soft credit inquiry.
2. Online Application: You complete the full application and upload documents directly to the dashboard.
3. Automated Underwriting: Nelnet uses automated systems to verify data quickly, though manual review is available for complex cases.
4. Funding: Upon approval and acceptance, Nelnet handles the payoff of your previous loans.

If you prefer having a human to call or email directly, ELFI’s process is superior. If you prefer a quick, “set it and forget it” digital transaction, Nelnet’s efficient platform works well.

Borrower benefits and perks

Beyond the interest rate and term length, lender perks can add value to your loan. These benefits often include financial protections, bonuses, or convenience features that make repayment easier.

• Personal Loan Advisor: As mentioned, this is ELFI’s flagship benefit. Having a dedicated expert means you don’t have to explain your situation to a new call center agent every time you contact them.
• Fast Bonus Program: ELFI occasionally runs referral programs or welcome bonuses for new borrowers (check current offers on their site).
• Autopay Discount: According to ELFI’s website, ELFI offers a rate reduction of 0.25% if you enroll in automatic payments.

• Servicing Integration: For borrowers who already have federal loans serviced by Nelnet, having your private refinance loan on a familiar platform can simplify financial management.
• Digital Tools: Nelnet provides robust mobile app access and online tools for tracking payments and managing account details.
• Autopay Discount: According to Nelnet Bank’s website, Nelnet also provides a standard interest rate discount of 0.25% for autopay enrollment.

While neither lender offers flashy perks like unemployment insurance or career coaching services found with some other fintech lenders, they focus on the fundamentals: low rates and reliable service.

Customer service and support

Customer service is often overlooked until you have a problem. In the world of student loans, responsive support is critical when you need to change payment dates, request tax forms, or discuss hardship options.

ELFI consistently ranks highly for customer satisfaction due to its SouthEast Bank roots. They operate with a “customer-first” philosophy. Users report high satisfaction with the ability to reach their specific loan advisor directly via phone or email without navigating endless phone trees. Their support hours are generally standard business hours, but the quality of interaction is typically rated very high.

Nelnet operates on a much larger scale. As a massive servicer, they have extensive call center operations with extended hours, which can be convenient for borrowers who need to call in the evening. However, you are likely to speak with a different representative each time you call. While efficient, the experience is more transactional compared to ELFI’s relationship-based model.

Forbearance and hardship options

Life is unpredictable. Job loss, medical emergencies, or economic downturns can impact your ability to make payments. Before refinancing federal loans—which come with extensive protections—you must understand what the private lender offers in terms of a safety net.

Warning: When you refinance federal loans with ELFI or Nelnet, you permanently lose access to federal benefits like Income-Driven Repayment (IDR) plans, Public Service Loan Forgiveness (PSLF), and federal forbearance. See our guide on federal vs. private loans for a full breakdown of these trade-offs.

• ELFI: According to ELFI’s website, ELFI offers forbearance options for economic hardship or medical distress, typically in 3-month increments up to a total of 12 months over the life of the loan. Approval is at the lender’s discretion and requires documentation.
• Nelnet: Nelnet also provides forbearance for financial hardship. Their policies are standard for the private industry, generally allowing for temporary payment pauses during periods of involuntary unemployment or economic distress. Interest continues to accrue during these periods for both lenders.

Both lenders offer reasonable protections for temporary setbacks, but neither can match the flexibility of federal income-driven plans. Refinancing is best suited for those with stable careers and emergency savings.

Fees comparison

Hidden fees can erode the savings from a lower interest rate. Fortunately, the student loan refinancing market has become very competitive, and “no-fee” loans are the industry standard.

• Origination Fees: According to ELFI and Nelnet’s websites, neither ELFI nor Nelnet charges origination fees as of January 2025. You receive the full amount you borrow, and 100% of it goes toward paying off your old loans.
• Prepayment Penalties: Both lenders allow you to pay off your loan early without penalty. This is crucial for borrowers who want to make extra payments to get out of debt faster.
• Late Fees: Both lenders charge late fees if a payment is missed or not received within the grace period (typically 5% of the past due amount or a flat fee like $25, depending on state laws).
• Returned Payment Fees: Expect a standard fee for insufficient funds if an autopay draft fails.

Pros and cons summary

To help you synthesize this information, here is a quick summary of the strengths and weaknesses of each lender.

• Pros:
  • Highly competitive rates for excellent-credit borrowers.
  • Dedicated Personal Loan Advisor for every applicant.
  • Flexible loan terms (5 to 20 years).
  • High maximum loan limits (up to cost of education).
• Cons:
  • Strict eligibility (must have a degree).
  • Cosigner release policy is restrictive (requires refinancing).
  • Higher minimum loan amount ($10,000).

• Pros:
  • Established, trusted brand with deep industry experience.
  • Clear path to cosigner release (typically after 24 payments).
  • Lower minimum loan amount ($5,000).
  • Potentially broader eligibility criteria.
• Cons:
  • Customer service is less personalized (call center model).
  • Maximum rates can be higher than ELFI’s ceiling.

Which lender is right for you?

Making the final choice depends on your specific financial profile and what features you value most. Because both lenders allow you to check rates without hurting your credit score, the smartest move is often to get quotes from both and compare the actual numbers.

• You have excellent credit: ELFI often wins on pure rate competitiveness for top-tier borrowers.
• You value service: You want a dedicated advisor to walk you through the paperwork and answer questions.
• You have a large balance: With high loan limits and a $10,000 minimum, ELFI is built for substantial refinancing needs.
• You don’t need a cosigner release: You are applying on your own or don’t mind refinancing later to remove a cosigner.

• You need a cosigner release: You are a parent or grad who wants a clear timeline (24 months) for removing the cosigner from the loan.
• You have a smaller balance: You need to refinance a specific loan amount between $5,000 and $10,000.
• You prefer digital simplicity: You want a fast, automated application process without needing to chat with an advisor.
• You already use Nelnet: You appreciate the convenience of sticking with a brand you know.

Ready to see your personalized rates? Checking rates with multiple lenders only takes a few minutes and won’t affect your credit score. Compare rates from 8+ lenders to ensure you are getting the best deal possible.

Key factors when choosing a refinancing lender

As you finalize your decision, keep these universal criteria in mind. These factors apply regardless of which lender you ultimately choose.

• APR vs. Interest Rate: Always compare the Annual Percentage Rate, which includes fees and gives a truer picture of cost.
• Total Interest Cost: Look at the total amount you will pay over the life of the loan, not just the monthly payment. A lower monthly payment often means higher total interest.
• Fixed vs. Variable: Decide if you can tolerate risk. If rates rise, a variable loan could become expensive. If you need stability, lock in a fixed rate.
• Loss of Federal Benefits: If refinancing federal loans, confirm you are comfortable giving up access to IDR plans and potential forgiveness. Review our guide on how to refinance student loans for a step-by-step checklist.

Frequently asked questions

Yes, both ELFI and Nelnet allow parents to refinance Parent PLUS loans. You can refinance them into a new loan in the parent’s name to secure a lower rate. Additionally, some lenders allow parents to refinance the loan into the child’s name (if the child qualifies), transferring the legal responsibility for the debt.

No. Both lenders use a “soft credit pull” to provide you with a preliminary rate quote. This allows you to see your potential interest rate and terms without any impact on your credit score. A “hard credit pull” is only performed if you accept an offer and proceed with the full application.

You can get rate quotes from both, but you can only refinance a specific loan with one lender at a time. However, smart borrowers often apply to multiple lenders to see who offers the lowest rate, then choose the best offer.

Generally, no. Both ELFI and Nelnet typically require the primary borrower to have graduated with at least a bachelor’s degree to be eligible for refinancing. If you are still in school, you may need to wait until after graduation to refinance.

The timeline varies but typically takes 2 to 4 weeks from application to funding. ELFI’s advisor model can sometimes expedite the document review process, while Nelnet’s automated system is also efficient. The speed often depends on how quickly you can upload required documents like pay stubs and payoff letters.

Refinancing your student loans is a powerful step toward financial freedom. Whether you choose ELFI for its personalized service and low rates or Nelnet for its flexible cosigner policies and lower minimums, both lenders offer reputable paths to managing your debt more effectively.

Key takeaways:

• Check Both: Since rate checks are free and risk-free, get quotes from both lenders to see who offers you the best deal.
• Know Your Priorities: If you need a cosigner release, Nelnet is likely the better fit. If you want a dedicated guide, ELFI wins.
• Understand the Trade-offs: Ensure you are comfortable moving away from federal protections before refinancing federal loans.

You have the knowledge to make the right choice. Take control of your financial future today by exploring your options.

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References and resources

• ELFI Official Website (Rates and Eligibility)
• Nelnet Bank Official Website (Refinancing Information)
• StudentAid.gov – Federal vs. Private Loans and Consolidation
• College Finance: Student Loan Refinancing Guide
• College Finance: Federal vs. Private Student Loans
• College Finance: Best Private Student Loan Lenders