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Nelnet, Inc., is a United States-based
conglomerate Conglomerate or conglomeration may refer to: * Conglomerate (company) * Conglomerate (geology) * Conglomerate (mathematics) In popular culture: * The Conglomerate (American group), a production crew and musical group founded by Busta Rhymes ** ...
that deals in the administration and repayment of
student loans A student loan is a type of loan designed to help students pay for post-secondary education and the associated fees, such as tuition, books and supplies, and living expenses. It may differ from other types of loans in the fact that the interest ...
and education financial services. The company is headquartered in
Lincoln, Nebraska Lincoln is the capital city of the U.S. state of Nebraska and the county seat of Lancaster County. The city covers with a population of 292,657 in 2021. It is the second-most populous city in Nebraska and the 73rd-largest in the United ...
. The company provides a range of products through its subsidiaries, which includes customer service for student loan borrowers, technology related to student loan customer service, outsourcing services for guaranty agencies, tuition payment plans, education planning, enrollment-related services and higher education planning tools. 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 $397 billion in loans, or around 42% of all student loans in the United States.


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, Colorado Denver () is a consolidated city and county, the capital, and most populous city of the U.S. state of Colorado. Its population was 715,522 at the 2020 census, a 19.22% increase since 2010. It is the 19th-most populous city in the Unit ...
. 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 a city located on the Atlantic coast of northeast Florida, the most populous city proper in the state and is the largest city by area in the contiguous United States as of 2020. It is the seat of Duval County, with which th ...
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 investme ...
occurred on August 19, 2003, for $200 million. Steve Butterfield stepped down as CEO in 2007. Nelnet owns over 50 subsidiaries that administer and collect student loans throughout the
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...
and
Canada Canada is a country in North America. Its ten provinces and three territories extend from the Atlantic Ocean to the Pacific Ocean and northward into the Arctic Ocean, covering over , making it the world's second-largest country by to ...
, such as inTuition, infiNET, LoanSTAR, and TriCura Canada, Inc. Also through their subsidy, FACTS Management they own Ren Web, a school management program. One of their lobbyists is Clark Lytle Geduldig & Cranford.


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, founded in 1966, is an American company that has a wide range of print and digital products and services, including test preparation, career exploration tools, memory retention techniques, and school, financial aid, and scholarship s ...
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 Ren Web in June 2014. Ren Web 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 Hudl is a product and service of Agile Sports Technologies, Inc. - a Lincoln, Nebraska based company providing tools for coaches and athletes to review game footage and improve team play. Its initial product line served college and profession ...
, Nebraska Global, Eye Verify,
Travefy Travefy () is a Lincoln, Nebraska-based company that builds itinerary management and communication software for travel professionals including travel agents and tour operators among others. Travefy also provides online and mobile group travel p ...
, and Mind Mixer.


Controversies

In February 2007, New York Attorney General
Andrew Cuomo Andrew Mark Cuomo ( ; ; born December 6, 1957) is an American lawyer and politician who served as the 56th governor of New York from 2011 to 2021. A member of the Democratic Party, he was elected to the same position that his father, Mario Cuo ...
launched an investigation into alleged deceptive lending practices by student loan providers, including The College Board, EduCap, Nelnet,
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, and Sallie Mae.
The New York Times ''The New York Times'' (''the Times'', ''NYT'', or the Gray Lady) is a daily newspaper based in New York City with a worldwide readership reported in 2020 to comprise a declining 840,000 paid print subscribers, and a growing 6 million paid ...
reported in August 2007 that
Jon Bruning Jon Cumberland Bruning (born April 30, 1969) is an American politician who served as the 32nd Attorney General of Nebraska from 2003 to 2015. A member of the Republican Party, he previously represented the 3rd district in the Nebraska Legislature ...
,
Nebraska Attorney General The Nebraska Attorney General is the chief law enforcement officer and lawyer for the U.S. state of Nebraska. List of attorneys general ;Parties Notes ReferencesAG Office document(cached) External links Nebraska Attorney Generalofficial ...
, 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 lawyer and politician who served as the 56th governor of New York from 2011 to 2021. A member of the Democratic Party, he was elected to the same position that his father, Mario Cuo ...
. Nelnet has also made significant financial contributions to
United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...
congressional campaigns, including a contribution from Nelnet and
Union Bank & Trust Company Union Bank & Trust Company is a privately owned, state chartered commercial bank headquartered in Lincoln, Nebraska. The bank was founded on February 28, 1917, under the name ''Farmer's State Bank''. The name was changed to Union Bank in 1935, ...
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. It began operating on May 4, 1980, having been created after the Department of Health, Education, and Welfare was split into the Departmen ...
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 a newspaper and website that presents news, information, and jobs for college and university faculty and student affairs professionals (staff members and administrators). A subscription is required to re ...
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

*
Nelnet
recipient profile on USAspending.gov *
Contract ED-FSA-09-D-0013
on USAspending.gov *
Contract ED-FSA-09-D-0012
on 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