Nelnet was among five companies to sign contracts with the U.S. Department of Education to overhaul student loan debt repayment plans over the next five years.
The Lincoln-based student loan servicer will be tasked with implementing "much-needed improvements" for more than 37 million borrowers with Direct Loans as well as federally managed Federal Family Education Loans.
In a news release, the Education Department said the contracts are part of a plan to provide "high-quality customer experience" and support for at-risk borrowers in order to prevent them from missing payments, defaulting on their loans, as well as qualifying for forgiveness programs.
Servicers that work with at-risk borrowers to keep them current are eligible to receive financial incentives or double the length of their contracts with the Office of Federal Student Aid.
James Kvaal, the undersecretary of education, said the contracts are part of the Biden administration's plan to fix the Public Service Loan Forgiveness program and implement "the most affordable repayment plan ever."
"The contracts awarded today will combine more investment and more accountability to deliver high levels of service to 37 million borrowers with federally managed loans, help them claim student loan benefits they have earned, and reduce the number of borrowers who fall into delinquency and default," Kvaal said.
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Nelnet CEO Jeff Noordhoek said the company looked forward to its ongoing partnership with the education department.
"The department's goal of modernizing and enhancing student loan servicing for borrowers through (Unified Servicing and Data Solution) aligns well with Nelnet's current investment strategies focused on the modernizing of our systems to ensure secure, state-of-the-art servicing platforms," Noordhoek said.
"We're excited to be 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," he added.
Along with Nelnet, Central Research Inc., EdFinancial Services, Maximus Education and the Missouri Higher Education Loan Authority all received contracts to service loans under the new program.
In March, Nelnet announced plans to layoff more than 500 people as a pause on student loan payments was extended while the Biden administration's plan to forgive up to $20,000 in student loans was being challenged in court.
The U.S. Supreme Court has yet to rule on that case, which was brought by Nebraska and five other states that said the student loan debt forgiveness plan exceeded the federal government's authority and would do harm to those state's finances.
The White House said in January 154,000 of the 232,100 borrowers in Nebraska deemed eligible to apply for forgiveness had been accepted into the program before it was put on pause.
Of those, 97,000 borrowers in the Cornhusker state were told their applications had been sent to loan servicing companies for discharge.
Top Journal Star photos for April 2023
Nebraska's Gabe Swansen (44) catches a fly ball against Minnesota at Haymarket Park on Sunday, April 30, 2023.
LARRY ROBINSON Journal Star
The Nebraska volleyball team, including Nebraska's Caroline Jurevicius (first right), wait to be introduced before the spring match against Wichita State on Saturday at Bison Activity Dome in Central City.
KENNETH FERRIERA Journal Star
Deb Neary, a member of the Nebraska State Board of Education, holds up a sign in front of the capitol building to protest LB753 Saturday at the Capitol.Â
LARRY ROBINSON, Journal Star
Lincoln Southwest's Hudson Shaffer slides safely into second base as Grand Island's Cohen Nelson awaits the throw Thursday at Sherman Field.
JUSTIN WAN Journal Star
Opponents of LB626 celebrate in the Rotunda Thursday after the bill fails to advance after failing one vote short of cloture. The bill sought to ban abortions in Nebraska after about 6 six weeks.Â
LARRY ROBINSON, Journal Star
Lincoln East's Kenneth Williams (left) finishes first in the 200-meter dash at 22.153 with Lincoln East's Gabe Miles finishing second at 22.158 during the LPS Championship, Wednesday, April 26, 2023, at Beechner Athletic Complex.
JUSTIN WAN Journal Star
A gosling waddles along the shore of a small pond as it looks for food on Wednesday at Pioneers Park in Lincoln. Within 24 hours of hatching, goslings, or baby geese, can dive underwater 30 to 40 feet. Goslings stay with their parents for their first year of life and as they grow older tend to group together in "gang broods" that can oftentimes number in the hundreds.Â
KENNETH FERRIERA, Journal Star
Shinedown's Zach Myers rocks out on his guitar as he performs during Shinedown’s Revolutions Live Tour on Tuesday, April 25, 2023, at Pinnacle Bank Arena.
KENNETH FERRIERA, Journal Star
Six-year-old Hsa Lay Hser revels in a cascade of bubbles as he tries to pop them before they fly away during Bubblepoolza on Tuesday at Whittier Field. UNL hosted the free event for students with children. Families were able to explore painting with bubbles, a bubble snake, a bubble tower and rainbow foam. All attendees left with free kits to recreate the activities at home.
KENNETH FERRIERA, Journal Star
Lincoln Stars' Patrick Raft (9) celebrates with fans after scoring a goal against Des Moines at the Ice Box on Monday, April 24, 2023.
LARRY ROBINSON Journal Star
Nebraska's Marcus Washington (left) is defended by Syncere Safeeullah during the Red-White Spring Game, Saturday, April 22, 2023, at Memorial Stadium.
JUSTIN WAN Journal Star
Nebraska quarterback Jeff Sims (14) celebrates with offensive lineman Ethan Piper (57) at Memorial Stadium on Saturday, April 22, 2023.
LARRY ROBINSON Journal Star
Sparky chows down on an oats and molasses birthday cake held by UNL equestrian team assistant coach Ibby Rodgers as they celebrate his 30th birthday on Thursday, April 20, 2023, at the Nebraska Animal Science Barn in Lincoln.
The birthday party for one of the eldest members of the UNL equestrian team brought a steady crowd of faces new and old. "Sparky was the first horse I rode when I joined the Equestrian team," alumni Tatem Vance remarked. "He means a lot to me and he's just everyone's favorite." While Pony rides and horse kissing booths attracted some. The prospect of seeing the old man on his 30th birthday was the main event. Visitors were all able to wish the birthday boy his birthday wishes. Often with a ninny or nibble on patrons shirt. "He kind of has an old man personality but in the best way possible," UNL equestrian Team assistant coach Ibby Rodgers said. "He also has no teeth, so he is also like a grandpa that way."
KENNETH FERRIERA Journal Star
Boys run the 800 meter final during the Harold Scott Invite Thursday at Beechner Athletic Complex.
LARRY ROBINSON, Journal Star
Lincoln Southwest's Charley Kort is dogpiled after scoring against Lincoln East during the HAC soccer championship match Wednesday at Seacrest Field.
JUSTIN WAN, Journal Star
Creighton players celebrate Andrew Meggs' run against Nebraska with teammate Tyler Lozano, Tuesday, April 18, 2023, at Haymarket Park.
JUSTIN WAN Journal Star
Lincoln Southeast students, senior Grayson Waller (from left), senior Micah Brusnahan and junior Parker Horvath react to stock prices during Junior Achievement's stock market challenge on Tuesday at Pinnacle Bank Arena.
JUSTIN WAN, Journal Star
Troops from the Nebraska National Guard Company A, 2-134th Infantry Battalion march on to the field to take part in a departure ceremony on Sunday at Memorial Stadium. One hundred thirty-one Nebraska Army National Guard Soldiers of Company A, 2-134th Infantry Battalion were seen off by their families and elected officials on Sunday. The Guard unit, based in Mead, is deploying overseas to the U.S. Africa Command area of responsibility where it will serve as a security force working with other U.S. military and partner nation forces.
KENNETH FERRIERA Journal Star
Lightning strikes above Memorial Stadium during a severe thunderstorm over Lincoln on Friday, April 14, 2023.
LARRY ROBINSON Journal Star
Nebraska's Cole Evans (bottom) slides into home for a run against Northwestern's Cooper Foard (7)Â Friday at Haymarket Park.
LARRY ROBINSON, Journal Star
A Lincoln Fire and Rescue firefighter walks across charred grass after a grass fire near the eastbound lane of US-34 on Thursday, April 13, 2023.
LARRY ROBINSON Journal Star
Sparks and smoke rise from a the workbench where Lincoln East senior Blake Allen welds together two pieces of metal on Wednesday, April 12, 2023, at The Career Academy in Lincoln. Lincoln East senior Blake Allen has been welding large letters to spell out a word. He plans to place the letters around the city for his capstone project at The Career Academy. His project honors a fellow welder and Lincoln East student.
KENNETH FERRIERA Journal Star
Lincoln Fire & Rescue personnel leave the site of a fire covered in insulation from inside the walls of a mobile home on Wednesday, April 12, 2023, near North First Street and Cornhusker Highway in Lincoln. Lincoln Fire and Rescue crews responded to the fire, near North First Street and Cornhusker Highway, just before 2 p.m. Wednesday and found a mobile home fully engulfed, Battalion Chief Jeremy Gegg said. One firefighter was injured while fighting the blaze, which totally destroyed a mobile home at 342 Alexander Road and caused damage to the exterior of a neighboring unit, which was vacant, Gegg said.
KENNETH FERRIERA Journal Star
Meg Jackson, Jordan Hasselbalch, Kenna Lehmann, Allison Johnson and one individual who did not give their name (from left) hold a sign that spells out "no bans" outside the Capitol on Wednesday. Groups on either side of the abortion debate rallied at the Capitol as debate began on LB626.
KENNETH FERRIERA, Journal Star
Pius X's Reese Kortum (left) dives for second base as the ball flies by Lincoln Southwest's Karter Chamberlain during a HAC baseball tournament quarterfinal game Tuesday, April 11, 2023, at Sherman Field.
LARRY ROBINSON Journal Star
Briana DeSanctis poses with her stuffed rucksack at the Husker Bar II on Monday in Brainard. DeSanctis is traveling the American Discovery Trail and aims to be the first solo woman to complete the trip in its entirety. The trail brought her from Delaware before she stopped for a drink and a bite to eat.
LARRY ROBINSON, Journal Star
Nebraska defensive backs line up for drills during practice on Tuesday, April 11, 2023, at the Hawks Championship Center in Lincoln.
KENNETH FERRIERA Journal Star
Nebraska's Laney Choboy (right) dives to save the ball from hitting the floor as players scrimmage during a volleyball spring practice session on Monday at the Devaney Sports Center.
KENNETH FERRIERA ,Journal Star
Anna Johansen organizes quarter annuals by type on the opening day for Canoyer Garden Center on Monday, April 10, 2023, in Lincoln. The new shop is the second Canoyer Garden Center in Nebraska. The family-owned business sells a selection of annuals, herbs, houseplants, home décor, and other gardening supplies.
KENNETH FERRIERA Journal Star
Escher Deal, 7 (right), cracks open an egg filled with pennies into a donation basket alongside Mira Krafka, 6 (left), after an Easter Egg hunt at the Unitarian Church of Lincoln on Sunday, April 9, 2023.
Eggs were filled with pennies instead of candy per usual Easter tradition, with the children receiving a lesson about giving back by donating the pennies they retrieve from the egg hunt into three different donation baskets. After donating the pennies, the kids got to choose from a various assortment of prizes. The baskets, which were evenly filled at the end of the prize frenzy, were for OutNebraska, a non-profit pro-LGBTQ+ advocacy group, Center for People in Need, a center aimed at addressing basic needs for low-income households, and Little Free Pantries, a network of Lincoln-based free-food pantries fully provided by donations to combat food insecurity in the community.
LARRY ROBINSON Journal Star
Lincoln East's Brayden Bouwens (right) makes a save on a Lincoln Southeast shot on goal on Saturday at Seacrest Field.
LARRY ROBINSON Journal Star
A more than yearlong campaign by First-Plymouth Church to erase the medical debt of residents in the Near South neighborhood will come to a close this Easter Sunday.
LARRY ROBINSON, Journal Star
Former Illinois prison director, Rob Jeffreys, is introduced as the new director of Nebraska Department of Correction Services at the Nebraska State Capitol on Monday, April 3, 2023.
LARRY ROBINSON Journal Star
The Theresa Street Water Resource Recovery Facility is photographed by drone on Friday, April 7, 2023. The Water Resource Recovery Facility sits on 51 acres along Salt Creek in the north central section of the City. the treatment facility has a maximum capacity of recovering 28 million gallons per day and on an average day presently recovers about 20 million gallons of water.
KENNETH FERRIERA Journal Star
Malcolm's Carson Frank waits to bat against Lincoln Christian Thursday at Lincoln Christian High School.
JUSTIN WAN, Journal Star
Pius X's Basil Fulton (lleft,12) and Morgan Armagost (3, Center) fight for position against Lincoln East's Marek Laird (first left, 8), Owen Hunt (right, 6) and Luke Duden (5, far right) during a corner kick in the first half on Tuesday, April 4, 2023, at Lincoln Pius X High School.
KENNETH FERRIERA Journal Star
Children, alongside Ella Bruce (top left), her mom BrieAnna Bruce (first left) and Hai Any Tran (right) vie for Easter eggs tossed into the pool during an Easter egg hunt, on Monday, April 3, 2023, at the Northeast YMCA in Lincoln.
Those in attendance were able to meet the Easter Bunny and get their toes wet searching the pool for eggs. Participants made sure to bring their swimsuits and pool-friendly baskets. Eggs were exchanged for treats outside the pool.
KENNETH FERRIERA Journal Star
A Lincoln resident casts a ballot in the city primary election at North Star High School on Tuesday.
LARRY ROBINSON, Journal Star
Nebraska's Isaiah Garcia-Castaneda runs with the ball during a football practice, Tuesday, April 4, 2023, at Hawks Championship Center.
JUSTIN WAN Journal Star
Lincoln Southeast students walk out of class Monday in protest of a bill in the Nebraska Legislature that would ban gender-affirming care for trans youths.
LARRY ROBINSON, Journal Star
Michigan's Ellie Sieler (1) slides into home, scoring a run, against Nebraska's Courtney Wallace (right) Sunday at Bowlin Stadium.
LARRY ROBINSON, Journal Star
Lincoln Stars' Mason Marcellus (right) slams Waterloo's Gavin Lindberg into the glass during the first period at the Ice Box on Saturday, April 1, 2023.
LARRY ROBINSON Journal Star
Dressed in Native American regalia, Many Moccasins Dance Troupe member Marysa Dominguez performs a shawl dance during the Return of the Thunderbirds celebration on Saturday at the Indian Center in Lincoln.
The event celebrates the time of year many Native peoples give thanks to the Thunder beings for providing rebirth with rain & thunder. It is also a time we celebrate the return of many migratory birds to Nebraska. The Audubon society and the Indian Center celebrated together with music, dance, food, arts, kids games and activities, and more.
KENNETH FERRIERA, Journal Star
Reach the writer at 402-473-7120 or cdunker@journalstar.com .
On Twitter @ChrisDunkerLJS
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