Nelnet, Inc. is a United States–based
conglomerate that primary focused on
financial services
Financial services are service (economics), economic services tied to finance provided by financial institutions. Financial services encompass a broad range of tertiary sector of the economy, service sector activities, especially as concerns finan ...
including
student
A student is a person enrolled in a school or other educational institution, or more generally, a person who takes a special interest in a subject.
In the United Kingdom and most The Commonwealth, commonwealth countries, a "student" attends ...
and consumer loan
origination and
servicing. Additionally, the company operates an
investing
Investment is traditionally defined as the "commitment of resources into something expected to gain value over time". If an investment involves money, then it can be defined as a "commitment of money to receive more money later". From a broade ...
arm, an
internet bank and has a 26% stake in Allo Fiber, a cable and internet provider. The company is headquartered in
Lincoln, Nebraska
Lincoln is the List of capitals in the United States, capital city of the U.S. state of Nebraska. The city covers and had a population of 291,082 as of the 2020 census. It is the state's List of cities in Nebraska, second-most populous city a ...
.
History
Nelnet was founded in 1996 by Mike Dunlap and Steve Butterfield.
In March 2000, Nelnet bought ''UNIPAC Service Corporation'', an existing loan servicing company which was founded in 1978 and based in
Denver
Denver ( ) is a List of municipalities in Colorado#Consolidated city and county, consolidated city and county, the List of capitals in the United States, capital and List of municipalities in Colorado, most populous city of the U.S. state of ...
, Colorado. As a subsidiary, ''UNIPAC Service Corporation'' was then renamed ''Nelnet Loan Services, Inc.'' In June 2000, Nelnet acquired ''In Tuition, Inc.'', a loan-servicing company based in
Jacksonville, Florida
Jacksonville ( ) is the most populous city proper in the U.S. state of Florida, located on the Atlantic coast of North Florida, northeastern Florida. It is the county seat of Duval County, Florida, Duval County, with which the City of Jacksonv ...
, which was founded in 1979.
Nelnet became a publicly traded company in 2003, at which point the two founders were co-CEOs.
In August 2003, the parent company was renamed from ''Nelnet Loan Services, Inc.'' to simply ''Nelnet, Inc.'' The
initial public offering
An initial public offering (IPO) or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also to retail (individual) investors. An IPO is typically underwritten by one or more investm ...
occurred on August19, 2003, for $200million. Steve Butterfield stepped down as CEO in 2007.
Nelnet owns over 50 subsidiaries that administer and collect student loans throughout the United States and Canada, such as in Tuition, infiNET, LoanSTAR, and TriCura Canada, Inc. Through its subsidiary, FACTS Management, Nelnet owns RenWeb, a school management program.
On February 7, 2018, Nelnet completed its acquisition of
Great Lakes Educational Loan Services, Inc. The combined company is the largest servicer of student loans in the United States, with $397billion in loans, or around 42% of all student loans in the United States.
Lines of business
Nelnet Diversified Services (NDS)
Provides customer service for student loan borrowers, technology related to student loan customer service, and outsourcing services for guaranty agencies.
One of the main NDS lines of business is Proxy, a business process outsourcing company based in Lincoln, Nebraska and Aurora, Colorado.
NDS companies also include Nelnet Loan Servicing, Great Lakes Educational Loan Services, Inc., First mark Services, Grant Pro, Responsible Repay, and Campus Guard.
Nelnet Enrollment Services (NES)
Provides education planning and enrollment-related services that give parents, students, and schools access to online educational resources and higher education planning tools.
Through NES, students can search for colleges and graduate schools, learn about admissions, find scholarships, prepare for tests, and more. In addition, NES helps colleges and universities recruit prospective students with interactive marketing strategies, enabling them to reach their enrollment goals.
NES includes Peterson's Interactive,
Peterson's
Peterson's is an American company that has print and digital products and services, including test preparation, memory retention techniques, and financial aid and scholarship searches. Peterson's is currently headquartered in Denver, Colorado. ...
Publishing,
EssayEdge, and
Government Services.
NES used to include Spark room until January 31, 2016. As of February 1, 2016, Digital Media Solutions, DMS, bought Spark room from Nelnet.
Nelnet Business Services (NBS)
Provides tuition payment plans, donor services, and financial aid services to families with students attending private and faith-based K-12 schools, as well as for colleges and universities.
NBS includes FACTS Management, Nelnet Business Solutions, and Payment Spring (PS).
FACTS Management
FACTS Management bought out RenWeb in June 2014. RenWeb is a provider of an online school management program, which is mostly used in the private school market at over 3500 schools.
Other subsidiaries
Resume Edge, which includes Resume Builder, offers professional resume writing, tools, and resources.
Total Well-Being provides services that motivate organizations’ employees to achieve health & wellness goals.
Total Well-Being Strive is an online fitness and wellness tracker created in-house at Nelnet and launched in early 2014. With the ability to be tailored to customer's needs, Total Well-Being Strive tracks nutrition and fitness while providing challenges to encourage employees to adopt a lifestyle of wellness.
Health Education Solutions, an expert online certification course provider in the health education field, offers advanced cardiac life support (ACLS) and pediatric advanced life support (PALS) training and certification according to the latest American Heart Association guidelines.
Allo Communications, a fiber optic cable and internet service provider headquartered in
Imperial, Nebraska.
Nelnet also invests in a number of startup companies, including
Hudl, Nebraska Global,
Eye Verify,
Travefy, and Mind Mixer.
Controversies
In February 2007, New York Attorney General
Andrew Cuomo
Andrew Mark Cuomo ( , ; born December 6, 1957) is an American politician and lawyer who served as the 56th governor of New York from 2011 until his resignation in 2021. A member of the Democratic Party and son of former governor Mario Cuomo, ...
launched an investigation into alleged deceptive lending practices by student loan providers, including
The College Board
The College Board, styled as CollegeBoard, is an American not-for-profit organization that was formed in December 1899 as the College Entrance Examination Board (CEEB) to expand access to higher education. While the College Board is not an asso ...
,
EduCap, Nelnet,
Citibank
Citibank, N.A. ("N. A." stands for "National bank (United States), National Association"; stylized as citibank) is the primary U.S. banking subsidiary of Citigroup, a financial services multinational corporation, multinational corporation. Ci ...
, and
Sallie Mae
SLM Corporation (commonly known as Sallie Mae; originally the Student Loan Marketing Association) is a publicly traded U.S. corporation that provides consumer banking. Its nature has changed dramatically since it was set up in the early 1970s; i ...
.
The New York Times
''The New York Times'' (''NYT'') is an American daily newspaper based in New York City. ''The New York Times'' covers domestic, national, and international news, and publishes opinion pieces, investigative reports, and reviews. As one of ...
reported in August 2007 that
Jon Bruning,
Nebraska Attorney General, allowed Nelnet to be forgiven the $1 million settlement the company reached with Bruning in April 2007.
Nelnet was accused of industry wide kickbacks, improper inducements, and gifts from student loan providers to colleges and universities. Nelnet agreed to provide $1 million to the state in support of a national financial aid awareness campaign. Bruning decided in August 2007 to forgive Nelnet its $1 million obligation after the company announced that it had reached a separate $2 million settlement with New York State Attorney General
Andrew Cuomo
Andrew Mark Cuomo ( , ; born December 6, 1957) is an American politician and lawyer who served as the 56th governor of New York from 2011 until his resignation in 2021. A member of the Democratic Party and son of former governor Mario Cuomo, ...
.
Nelnet has also made significant financial contributions to
United States
The United States of America (USA), also known as the United States (U.S.) or America, is a country primarily located in North America. It is a federal republic of 50 U.S. state, states and a federal capital district, Washington, D.C. The 48 ...
congressional campaigns, including a contribution from Nelnet and
Union Bank & Trust Company of $16,100 to Jon Bruning, Nebraska Attorney General, for his Senate election campaign. Nelnet spent approximately $200,000.00 in the 2015–2016 Election Cycle, per Federal Election Commission Records and have already spent an approximate $60,000 for the 2017–2018 Election Cycle.
A
United States Department of Education
The United States Department of Education is a cabinet-level department of the United States government, originating in 1980. The department began operating on May 4, 1980, having been created after the Department of Health, Education, and ...
audit revealed that from 1993 to 2007, Nelnet had utilized a loophole in federal tax legislation that allowed the company to receive a higher interest rate on specified loans, generating $278 million from taxpayers. Nelnet disputed the findings of the audit through a letter written to the United States Department of Education letting them know of this loophole, and ultimately, U.S. Department of Education ruled that Nelnet would keep the $278 million.
The Chronicle of Higher Education
''The Chronicle of Higher Education'' is an American newspaper and website that presents news, information, and jobs for college and university faculty and student affairs professionals, including staff members and administrators. A subscription ...
reported in August 2010, that Nelnet settled a case for $55 million. The suit was filed by a former Department of Education researcher named Dr. Jon Oberg. Nelnet and other lenders were accused of defrauding taxpayers of billions of dollars in student loan subsidies. The largest student lender in the country, Sallie Mae, is also listed as a defendant in the case. Oberg's suit ultimately led to taxpayer funds being returned by seven of the nine companies Oberg sued.
References
External links
*
Nelnetrecipient profile on
USAspending.gov
USAspending.gov is a database of spending by the United States federal government.
History
Around the time of the Federal Funding Accountability and Transparency Act of 2006's passage, OMB Watch, a government watchdog group, was developing a ...
*
Contract ED-FSA-09-D-0013on USAspending.gov
*
Contract ED-FSA-09-D-0012on USAspending.gov
Nelnet letters to the Letter to Nebraska Attorney GeneralAllo Communications WebsitePaymentSpring, a Nelnet company
{{Authority control
Companies listed on the New York Stock Exchange
United States federal student loan servicers
Companies based in Lincoln, Nebraska
1996 establishments in Nebraska
Education finance in the United States