Student loan servicer Nelnet to cut 550 jobs Dept. of Education cut pricing of contracts

Attention all students with student loans! Nelnet, one of the largest student loan servicers, announced that it will be cutting 550 jobs in the coming months due to the Department of Education’s decision to cut the pricing of their contracts.

According to a company spokesperson, the job cuts will primarily affect employees who work in the servicing and customer service departments. Nelnet is not the only student loan servicer to experience this type of setback. In fact, last year, the Department of Education terminated its contracts with five other companies.

This news is concerning, considering that Nelnet services approximately 6.8 million student loan borrowers. With fewer employees, there could be longer wait times and delays for borrowers hoping to get answers to their questions about their loans.

Furthermore, this news highlights a growing issue with the student loan system in the United States. With the cost of education continuing to skyrocket, many students are forced to take out loans to pay for their education. However, the system for servicing and managing these loans is often unreliable and confusing, leaving many borrowers feeling lost and overwhelmed.

In conclusion, the cutting of jobs at Nelnet is another concerning sign for students with loans, and highlights the systemic issues surrounding student loans in the US. It is important for policymakers to address these issues and work toward a more sustainable and equitable student loan system for all borrowers.