Nelnet Says He Is No Longer Vying For Key Element Of Student Loans Service | News from local businesses
Nelnet’s loan management division is by far the largest part of the business, generating more than $ 500 million in revenue last year. The company did not say how many of its employees work in the loan department, but it is a substantial number.
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Nelnet’s current service contract with the government is expected to end in December, although it can be extended for up to a year. The company is also still in the running for another part of the next generation business, business process operations, which would involve managing back office operations such as call centers.
However, the company in its press release made a disturbing reference to what could happen if it ultimately fails to protest the improved treatment solution offer.
If the department’s decision is upheld, Nelnet Servicing and Great Lakes will eventually have to migrate these portfolios to another vendor’s system after the award has been awarded and the company will ultimately have to restructure the lending service segment of the business. ‘business,’ he said in the press release. . This could mean the loss of hundreds of jobs in Lincoln, where Nelnet employs more than 2,500 people.
A spokesperson for Nelnet declined to provide specific details of the potential job cuts.
Investors did not receive the news well, as Nelnet’s share price fell more than 12.5% on Friday.