Nelnet Rolls Out Online Application for New Federal PLUS Loan for Graduate/Professional Students

Jun 07, 2006

LINCOLN, Neb., June 7, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Today, Nelnet (NYSE: NNI) announced a new online application for a Nelnet PLUS Loan program to aid graduate and professional students in paying for college.

The new Grad PLUS loans, which will be expanded to graduate and professional students on July 1, 2006, will carry a fixed interest rate of 8.5 percent. The new rate on the guaranteed Federal PLUS Loan program was established by Congress in the Deficit Reduction Act of 2005.

All Nelnet PLUS Loan borrowers will receive a 3 percent interest credit after the loan enters repayment. This credit will be applied 210 days after the PLUS loan is fully disbursed. In addition, students will receive a 3.33 percent reduction of their original principal loan balance after making 30 initial, on-time payments, as well as a 0.25 percent interest rate reduction for auto-debit payments. These borrower benefits may vary by state, lender, and servicer.

The Nelnet Grad PLUS Loan offers borrowers the same benefits as the traditional PLUS loan for parents; the program was recently expanded to allow graduate and professional students to borrow as much as the entire cost of attending school, less other financial aid.

"Nelnet is offering a tremendous opportunity to future students who otherwise could not afford financing an advanced degree," said David Bottegal, Chief Executive Officer of Nelnet's Education Services Division. "I hope any potential graduate or professional students will consider the Nelnet Grad PLUS Loan as an affordable option to cover the rising cost of education."

Nelnet's online pre-approval and application process for the new Nelnet Grad PLUS Loan includes an instant credit evaluation and option to e-sign, but varies depending on the school. In addition, these loans are also eligible for Federal Family Education Loan Program tax benefits that include the Hope Credit, Lifetime Learning Credit, and student loan interest deductibility.

Borrowers interested in applying for a new Federal PLUS Loan for graduate or professional students should visit www.nelnet.net or call 1.866.866.7372.

Nelnet is one of the leading education finance companies in the United States and is focused on providing quality products and services to students and schools nationwide. Nelnet ranks among the nation's leaders in terms of total net student loan assets with $21.3 billion as of March 31, 2006. Headquartered in Lincoln, Nebraska, Nelnet originates, consolidates, securitizes, holds, and services student loans, principally loans originated under the Federal Family Education Loan Program of the U.S. Department of Education.

Additional information is available at www.nelnet.net.

(code: nnig)

SOURCE Nelnet

Eric Solomon, +1-202-659-2258
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