Reaffirmation Agreement Student Loan Nelnet: What You Need to Know
If you have taken out student loans, you may be familiar with Nelnet. Nelnet is one of the largest student loan servicers in the United States, and it services both federal and private student loans.
One term you may have heard in relation to student loan repayment with Nelnet is the “reaffirmation agreement.” In this article, we will explain what a reaffirmation agreement is, how it works with Nelnet student loans, and what you need to know if you are considering it.
What is a Reaffirmation Agreement?
A reaffirmation agreement is a legally binding agreement between a borrower and a lender. In the context of student loans, it is an agreement between you and Nelnet to continue making payments on your student loans after your bankruptcy case has been discharged.
If you filed for bankruptcy, your student loans may have been included in the bankruptcy. However, student loans are not typically dischargeable in bankruptcy, which means you would still be responsible for repaying them after your bankruptcy case is closed.
To ensure that you are able to continue making payments on your Nelnet student loans, you may need to sign a reaffirmation agreement. This agreement acknowledges your responsibility to repay your student loans and can help protect you from defaulting on your loans in the future.
How does a Reaffirmation Agreement Work with Nelnet Student Loans?
If you are considering signing a reaffirmation agreement with Nelnet, there are a few things you should know.
First, you should review your bankruptcy paperwork to see if your student loans were included in your bankruptcy case. If they were, you will need to sign a reaffirmation agreement to continue making payments on your Nelnet student loans.
Next, you should contact Nelnet to request a reaffirmation agreement. Nelnet will provide you with the necessary paperwork and instructions for completing and submitting the agreement.
Once you have signed the reaffirmation agreement, it will be filed with the bankruptcy court. This will ensure that your Nelnet student loans are not discharged in your bankruptcy case and that you are responsible for repaying them after the bankruptcy case is closed.
What You Need to Know Before Signing a Reaffirmation Agreement with Nelnet
Before signing a reaffirmation agreement with Nelnet, there are a few things you should be aware of.
First, if you do not sign a reaffirmation agreement, your Nelnet student loans may still be in deferment or forbearance while your bankruptcy case is pending. However, once your case is closed, you will be responsible for repaying your loans.
Second, signing a reaffirmation agreement means that you are agreeing to repay your Nelnet student loans even if you are facing financial hardship or other life circumstances that make it difficult to repay the loans. If you default on your loans, Nelnet may be able to garnish your wages or take other actions to collect the debt.
Lastly, signing a reaffirmation agreement may affect your ability to qualify for future credit or loans. Lenders may see the reaffirmed debt as a potential liability and may be more hesitant to loan you money in the future.
Conclusion
Reaffirmation agreements can be a useful tool for borrowers who want to continue making payments on their student loans after filing for bankruptcy. If you have Nelnet student loans and are considering signing a reaffirmation agreement, make sure you understand your options and the potential consequences of signing the agreement.
Consulting with a bankruptcy attorney or financial advisor can also be helpful in making the best decision for your financial situation.