A Lincoln based student loan servicing company has announced 350 employees hired within the last six months will be laid off. The changes are being made to manage excess staff capacity due to delays in the government’s student debt relief and return to repayment programs.
“These decisions are never easy,” says Ben Kiser, Nelnet’s executive director of corporate communications. “With the delay of federal student loan repayment through much of 2023, regrettably, it isn’t feasible to maintain increased staffing levels for work that will remain on hold for a significant amount of time.”
Kiser says 60 days notice was given to the associates and says performance was not a factor. 210 other associates were terminated due to performance issues.
“We will continue to actively search for opportunities within the organization to redeploy eligible associates, and we hope many will consider reapplying to join our NDS team when repayment does resume.”
Nelnet employs approximately 8,300 associates. It’s not known how many of the associates being laid off are based in Nebraska.