LINCOLN,
Neb., April 25, 2023 /PRNewswire/ -- Nelnet
(NYSE: NNI) today announced its Nelnet Diversified Services
division has been awarded a Unified Servicing and Data Solution
(USDS) contract by the United States Department of Education
(Department) Office of Federal Student Aid (FSA).
The 5-year federal contract, with possible extensions up to 10
years, will replace existing legacy student loan servicing
contracts for Direct Loans and federally managed Federal Family
Education Loan (FFEL) Program loans and will be centered on
providing superior customer service to federal student loan
borrowers through measurable service-level agreements and
performance metrics.
"As the country's leading loan servicer, Nelnet is proud to have
been selected as a USDS contract recipient," said Jeff Noordhoek, Nelnet's chief executive
officer. "We look forward to our ongoing partnership with the
Department, which allows us to continue providing superior customer
experiences to federal student aid recipients and their
families."
The total loan servicing volume under USDS will include more
than 37 million borrowers with federally managed loans, which will
be allocated by the Department to Nelnet and four other servicers
that were awarded a USDS contract.
No immediate changes will impact student loan borrowers as the
full terms of the agreement are expected to go live in 2024.
According to the Department, the legacy servicer contracts will be
extended through December 2024 to
help facilitate a smooth transition for borrowers.
"The Department's goal of modernizing and enhancing student loan
servicing for borrowers through USDS aligns well with Nelnet's
current investment strategies focused on the modernization of our
systems to ensure secure, state-of-the-art servicing platforms,"
Noordhoek added. "We're excited to be a part of the solution for
the next 10 years and beyond as we continue our long-term mission
of helping people fulfill their educational dreams."
About Nelnet
Headquartered in Lincoln, NE,
Nelnet (NYSE: NNI) is a publicly traded diversified financial
services and technology company committed to enriching lives
through the power of service. Offering educational services,
technology solutions, professional services, renewable energy,
telecommunications, and asset management, Nelnet's largest
operating businesses engage in student loan servicing, tuition
payment processing and school information systems, and
communications. The company also makes investments in real
estate and start-up ventures. To learn more
visit NelnetInc.com.
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SOURCE Nelnet, Inc.