What is the Nelnet student loan scandal?

Asked by: Vicente Olson  |  Last update: March 2, 2026
Score: 4.5/5 (33 votes)

(Nelnet), one of the nation's largest federal student loan servicers, resolving allegations that the company failed to appropriately communicate with borrowers about renewing Income-Driven Repayment (IDR) plans that provide access to affordable payments.

Will student loans through Nelnet be forgiven?

Teachers with loans through Nelnet can pursue teacher loan forgiveness. Teachers may qualify to have a maximum of $17,500 or $5,000 in student loans forgiven, depending on the subject area taught, if specific requirements are met.

Why were my student loans transferred to Nelnet?

Your loan may have been transferred for reasons like private loans getting sold, a contract ending with the federal government or signing up for other programs like Public Service Loan Forgiveness (PSLF).

Is Nelnet backed by the federal government?

Nelnet is a federal student loan servicer working on behalf of the U.S. Department of Education (ED), the government agency that lends you student loans.

Why did my Nelnet student loans disappear?

What happened? Student loans disappear from credit reports 7.5 years from the date they are paid in full, charged-off, or entered default. However, education debt can reappear if you dig out of default with consolidation or loan rehabilitation.

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20 related questions found

Why are my student loans suddenly paid off?

If your student loan balance is suddenly showing zero, some of the many reasons could be: Your federal student aid or private student loans were forgiven. You've completed one of the student loan forgiveness programs. You qualify for Public Service Loan Forgiveness (PSLF), or.

Is Nelnet refunding student loans?

All payments on eligible loans made to ED will be refunded. Payments not made to the Department will not be refunded. This means you would no longer have to make payments on those loans associated with the school that misled you, and you may have some of your past loan payments refunded to you.

What is the lawsuit against Nelnet?

It focuses on plans qualifying for adjustments in monthly payments based on income. Johansson and others contend that Nelnet systematically failed to process applications to modify payment terms and systematically failed to make requested adjustments for which borrowers qualified.

Is Nelnet a federal or private loan?

Is Nelnet Federal or Private? Nelnet is primarily known as a federal loan servicer. However, Nelnet is a large company with several segments. Parts of its business offer private education loans and consumer loans.

Why did my student loan payment increase in Nelnet?

Your Payment Could be More Than Usual

Your current amount due may be higher if your most recent payment did not cover the current amount due, your lower repayment plan has expired, or you are on a plan that increases your payment amount incrementally.

Is my loan with Nelnet a federal student loan?

Nelnet provides customer service for your Federal Direct Loan Program and Federal Family Education Loan (FFEL) Program loans that are owned by the U.S. Department of Education. Looking for your federal student loans from an account number that begins with E? Select the Nelnet Federal Student Loans button.

Why is Discover not doing student loans anymore?

Discover's interim CEO and President John Owen said that “Discover's Board regularly reviews the strategic fit of all of our businesses, with a focus on providing exceptional customer service and allocating resources to optimize returns.” After a regular review, it was “determined that exploring the sale and transfer ...

Why did my student loans go from Great Lakes to Nelnet?

Great Lakes and Nelnet were previously separate loan companies. But later they collaborated with each other and both of them merged. Now all the loans taken by both of them were arranged serial wise and divided into two parts. This is the reason why many Great Lakes loans were transferred to Nelnet.

What happens if student loans are transferred to Nelnet?

If we transfer your federal student loans from one servicer to another servicer, your loans will still be owned by ED. The “transfer” to another servicer simply means that a new servicer will provide the support you need to fully repay your loans.

Which student loans are excluded from forgiveness?

What student loans are not eligible for forgiveness? Private student loans, by definition, are private and are not eligible to be forgiven. These are loans the borrower owes to student loan providers and not the federal government.

Who qualifies for the new student loan forgiveness?

You may be eligible for income-driven repayment (IDR) loan forgiveness if you've have been in repayment for 20 or 25 years. An IDR plan bases your monthly payment on your income and family size.

Do Nelnet loans qualify for loan forgiveness?

You may be eligible for forgiveness of the remaining balance of your Direct Loans after making 120 qualifying payments on those loans while employed full time by a qualifying public service employer(s).

What company owns Nelnet?

In Nelnet's case, its Top Key Executive, Michael Dunlap, is the largest shareholder, holding 24% of shares outstanding. Dimensional Fund Advisors LP is the second largest shareholder owning 5.6% of common stock, and The Magnolia Group, LLC holds about 5.1% of the company stock.

What happened to Nelnet student loans?

Nelnet and Great Lakes, which are part of the same company and collectively service federal student loans for approximately 13 million student loan borrowers, may no longer service federal student loans after December 2020.

Can I trust Nelnet?

Nelnet has an A+ rating with the Better Business Bureau, but reviews say otherwise. The lender has a one-star rating and resolved around 700 complaints in the last year.

How do I know if I was affected by Nelnet breach?

If your information was exposed by this breach, you should have received a notification from OSLA or EdFinancial.

Why would I get a refund from Nelnet?

If a credit balance remains after all charges are paid, you will be refunded the amount of the credit. All refunds are made through the refund method selection you made with Nelnet.

Is Nelnet a federal loan?

We deliver efficient, compliant federal loan services for the Department of Education and exceptional service for its customers. If you're a borrower looking for help with your federal student loan(s) serviced by Nelnet, please visit Nelnet.StudentAid.gov.

Why did I get a student loan refund check in 2024?

Why did my college send me a check? A refund check is money that is directly deposited to you by your college. It is the excess money left over from your financial aid award after your tuition and additional fees have been paid. Your college may send you a check or the money may be deposited into your checking account.

What schools are on the borrowers defense list?

Visit the borrower defense updates page for news and updates about borrower defense loan discharge.
  • American Career Institute, Inc. ...
  • Corinthian Colleges, Inc. ...
  • Court Reporting Institute (CRI)
  • DeVry University (DeVry)
  • ITT Technical Institute (ITT)
  • Marinello Schools of Beauty (Marinello)