Nelnet has announced a staffing reduction to address lower pricing and reduced servicing volume for the company’s federal servicing contracts. A contract modification from the Department of Education for the company’s current loan servicing contracts significantly decreased the price earned per borrower per month.
The company also says the Department notified Nelnet of its intent to transfer 1 million borrowers from Nelnet Loan Servicing to another federal servicer. The transfer, which was not based on Nelnet’s performance, is scheduled to occur over the next few months.
Approximately 550 associates in Nelnet’s Diversified Services division and some in related shared services areas that support NDS were notified their positions are being eliminated.