Nelnet announces 550 job cuts in second round of layoffs of 2023
LINCOLN, Neb. (KLKN) — The loan servicing company headquartered in Lincoln has announced a second round of layoffs for the year.
Nelnet announced Thursday that it would be eliminating roughly 550 positions.
On Wednesday, the company says it received a contract modification from the U.S. Department of Education that would diminish the money it earns per borrower.
In February, the department also told Nelnet that 1 million of its borrowers would be transferred to other loan servicers.
The company expects these transfers to take place over the next few months.
Those decisions, as well as Nelnet’s intentions to strategically consolidate operations, led to the layoffs.
Nelnet said in a press release that it will “look for redundancies and efficiencies” as the year goes on.
It let 350 employees go in January in light of the extension of the pause on student loan payments.
The company also fired 210 employees at that time, citing performance reasons.