Friday, June 9, 2023
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Scholar Mortgage Servicer Layoffs, Once more

Nelnet Proclaims Plans to Lay Off Over 500 Staff

For the second time prior to now 12 months, one of many largest pupil mortgage servicers within the nation is lowering employees.

Final week, Nelnet introduced layoffs of roughly 550 associates as a consequence of a contract modification from the Division of Training.

The vast majority of Nelnet associates laid off have been employed throughout the final six months in anticipation of the scholar mortgage reimbursement resumption later this 12 months.

What This Means for Debtors

Hundreds of thousands of debtors can have a brand new pupil mortgage servicer when reimbursement resumes. Many debtors have moved or modified emails and telephone numbers within the final three years with out updating their servicer account info. 

Servicers have an unlimited problem of monitoring down debtors to arrange them for reimbursement whereas dealing with staffing shortages and untrained associates.

Debtors might not know who their new servicer is and can face lengthy maintain instances to get in contact with representatives. This may result in much more delinquencies along with the monetary problem of resuming reimbursement. 

What Faculties Ought to Do

You possibly can assist your college students and alumni put together for reimbursement by partnering with IonTuition, a third-party servicer as required by the Division of Training.

For over ten years, we’ve helped colleges cut back their Cohort Default Charges by way of proactive pupil mortgage counseling and on-line reimbursement administration instruments. 



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