Nelnet

Economic Woes Hit Sallie Mae, Nelnet

Tightening credit markets and the slowing economy appear to be spreading into the student loan industry, as two major lenders announced recently that they will be cutting jobs and shying away from riskier loans. Last Friday, Virginia-based Sallie Mae said it would be trimming 350 jobs across the country, roughly 3 percent of its workforce. Nelnet, located in Nebraska, announced it would cut 300 jobs, about 10 percent of its workforce — its second round of major layoffs since September. Both companies also announced changes to the loan services they would be offering. Sallie Mae said it would be more selective about offering private loans to students with low credit scores and those enrolled at schools with low graduation rates. Nelnet, meanwhile, announced it would stop offering loan consolidation services and would be more selective with the loans it offered.

Nelnet Audit Receives Top Prize from the Council on Integrity and Efficiency

The Inspector General's Office at the Department of Education has received the top award the government gives to federal inspector generals for its investigation into the student loan company…

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Hillary Clinton Includes Two New America Policy Proposals in Her Education Plan

Two New America policy proposals: required multi-year tuition levels and greater use of endowments to

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9.5% Program Cost Taxpayers $3.5 Billion Since 2001

From 2001 to 2006 the Department of Education paid out $3.5 billion under a subsidy program designed to guarantee nonprofit student loan providers a 9.5 percent rate of return, the

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In a reversal, student loan giant Nelnet will pay $1 million to settle a Nebraska investigation into deceptive marketing practices after all. Two weeks ago, Nebraska Attorney General Jon Bruning's office announced he would forgive Nelnet its original $1 million settlement commitment and close the case without further action. But after…

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Nebraska Attorney General Jon Bruning (R-NE) attacked New York State Attorney General Andrew Cuomo's (D-NY) student loan investigation yesterday, saying it's "widely perceived as an embarrassment" and that student loan giant Nelnet is an "ethical, decent, and honest company."

The Nebraska Attorney General goes on to say, "I…

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Nebraska Attorney General Jon Bruning is a forgiving man - at least when it comes to those who are helping finance his planned campaign for the United States Senate, like his good friends at the student loan company Nelnet.

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Senate Unanimously Passes Bill to Reauthorize the Higher Education Act

By a vote of 95 to 0, the Senate unanimously approved legislation Tuesday that would impose new restrictions on the relationships between student loan providers and colleges,…

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Congress is inching closer to slashing overly generous subsidies the government provides student loan banks and increasing need-based student aid by a concomitant amount. Last week, the House approved a budget reconciliation bill that would reduce bank subsidies by $19-billion over five years and redirect the savings to expanded grant aid…

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Now that Congress is taking action to make college more affordable for students and their parents, the loan industry is once again doing what it does best: spreading fear to try to protect the overly-generous subsidies that lenders get from the federal government to…

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