Nelnet Announces Plans to Lay Off Over 500 Workers
For the second time in the past year, one of the largest student loan servicers in the country is reducing staff.
Last week, Nelnet announced layoffs of approximately 550 associates due to a contract modification from the Department of Education.
The majority of Nelnet associates laid off were hired within the last six months in anticipation of the student loan repayment resumption later this year.
What This Means for Borrowers
Millions of borrowers will have a new student loan servicer when repayment resumes. Many borrowers have moved or changed emails and phone numbers in the last three years without updating their servicer account information.
Servicers have an enormous challenge of tracking down borrowers to prepare them for repayment while facing staffing shortages and untrained associates.
Borrowers may not know who their new servicer is and will face long hold times to get in touch with representatives. This can lead to even more delinquencies in addition to the financial challenge of resuming repayment.
What Colleges Should Do
You can help your students and alumni prepare for repayment by partnering with IonTuition, a third-party servicer as required by the Department of Education.
For over ten years, we’ve helped schools reduce their Cohort Default Rates through proactive student loan counseling and online repayment management tools.