I typically dont post more than one blog a day unless I feel that we have received important questions about the same issue from multiple people. One of my friends today asked me "Is it true that Nelnet had a class action lawsuit". So lets get into it.
Nelnet is one of the largest student loan servicers in the US, managing over $200 billion in federal and private loans for more than 5 million borrowers. However, the company has also been facing several lawsuits over its alleged misconduct and negligence in handling student loans. Here are some of the pending lawsuits against Nelnet and what they mean for borrowers.
Data Breach Lawsuit
In August 2022, Nelnet Servicing LLC, a subsidiary of Nelnet that provides technology services to other student loan servicers, disclosed that it had suffered a data breach that affected 2.5 million borrowers whose loans are serviced by the Oklahoma Student Loan Authority (OSLA) or EdFinancial Services LLC12. The breach exposed borrowers’ names, email addresses, phone numbers and Social Security numbers, which could be used for identity theft and fraud1.
Two class action lawsuits have been filed against Nelnet Servicing in the U.S. District Court for the District of Nebraska, accusing the company of failing to protect borrowers’ personal information and violating various state and federal laws, including the Fair Credit Reporting Act, the Gramm-Leach-Bliley Act and the Nebraska Consumer Protection Act12. The plaintiffs are seeking damages, injunctive relief and credit monitoring services for themselves and all affected borrowers12.
Income-Based Repayment Lawsuit
In March 2021, a class action lawsuit was filed against Nelnet in the U.S. District Court for the District of Nebraska, alleging that the company systematically violated the federal laws that protect borrowers’ rights and financial well-being34. The lawsuit claims that Nelnet failed to offer a comprehensive income-based repayment plan to eligible borrowers, resulting in millions of Americans being unable to pay their debts and facing default, delinquency and increased interest charges34.
The lawsuit also accuses Nelnet of misrepresenting borrowers’ repayment options, failing to process payments correctly, applying payments to the wrong accounts, charging unauthorized fees, providing inaccurate information to credit bureaus and harassing borrowers with collection calls34. The plaintiffs are seeking damages, restitution, declaratory relief and injunctive relief for themselves and all affected borrowers34.
What Should You Do If You Are Affected by These Lawsuits?
If you are a borrower whose loan is serviced by Nelnet or whose personal information was exposed in the data breach, you may be eligible to join one or both of these lawsuits. To find out more about your rights and options, you can contact a qualified attorney who specializes in consumer protection and class action litigation. You can also monitor the status of these lawsuits online or by calling Nelnet’s customer service.
In addition, you should take steps to protect your personal information and credit report from potential identity theft and fraud. You can do this by:
Reviewing your credit reports regularly and disputing any errors or unauthorized accounts
Placing a fraud alert or a credit freeze on your credit files
Changing your passwords and security questions for your online accounts
Monitoring your bank statements and credit card statements for any suspicious transactions
Reporting any suspicious activity to the Federal Trade Commission (FTC) and your local law enforcement
Nelnet is not the only student loan servicer that has been sued for its practices. Other servicers such as Navient, Great Lakes and FedLoan have also faced similar lawsuits in recent years. As a borrower, you should be aware of your rights and responsibilities when it comes to your student loans and seek legal help if you feel that you have been wronged by your servicer.
Received message. # Nelnet Student Loan Pending Lawsuits: What You Need to Know Nelnet is one of the largest student loan servicers in the US, managing over $200 billion in federal and private loans for more than 5 million borrowers. However, the company has also been facing several lawsuits over its alleged misconduct and negligence in handling student loans. Here are some of the pending lawsuits against Nelnet and what they mean for borrowers.
Data Breach Lawsuit In August 2022, Nelnet Servicing LLC, a subsidiary of Nelnet that provides technology services to other student loan servicers, disclosed that it had suffered a data breach that affected 2.5 million borrowers whose loans are serviced by the Oklahoma Student Loan Authority (OSLA) or EdFinancial Services LLC .
The breach exposed borrowers' names, email addresses, phone numbers and Social Security numbers, which could be used for identity theft and fraud. Two class action lawsuits have been filed against Nelnet Servicing in the U.S. District Court for the District of Nebraska, accusing the company of failing to protect borrowers' personal information and violating various state and federal laws, including the Fair Credit Reporting Act, the Gramm-Leach-Bliley Act and the Nebraska Consumer Protection Act . The plaintiffs are seeking damages, injunctive relief and credit monitoring services for themselves and all affected borrowers .
Income-Based Repayment Lawsuit In March 2021, a class action lawsuit was filed against Nelnet in the U.S. District Court for the District of Nebraska, alleging that the company systematically violated the federal laws that protect borrowers' rights and financial well-being . The lawsuit claims that Nelnet failed to offer a comprehensive income-based repayment plan to eligible borrowers, resulting in millions of Americans being unable to pay their debts and facing default, delinquency and increased interest charges . The lawsuit also accuses Nelnet of misrepresenting borrowers' repayment options, failing to process payments correctly, applying payments to the wrong accounts, charging unauthorized fees, providing inaccurate information to credit bureaus and harassing borrowers with collection calls . The plaintiffs are seeking damages, restitution, declaratory relief and injunctive relief for themselves and all affected borrowers .
What Should You Do If You Are Affected by These Lawsuits? If you are a borrower whose loan is serviced by Nelnet or whose personal information was exposed in the data breach, you may be eligible to join one or both of these lawsuits. To find out more about your rights and options, you can contact a qualified attorney who specializes in consumer protection and class action litigation. You can also monitor the status of these lawsuits online or by calling Nelnet's customer service. In addition, you should take steps to protect your personal information and credit report from potential identity theft and fraud. You can do this by: - Reviewing your credit reports regularly and disputing any errors or unauthorized accounts - Placing a fraud alert or a credit freeze on your credit files - Changing your passwords and security questions for your online accounts - Monitoring your bank statements and credit card statements for any suspicious transactions - Reporting any suspicious activity to the Federal Trade Commission (FTC) and your local law enforcement Nelnet is not the only student loan servicer that has been sued for its practices. Other servicers such as Navient, Great Lakes and FedLoan have also faced similar lawsuits in recent years. As a borrower, you should be aware of your rights and responsibilities when it comes to your student loans and seek legal help if you feel that you have been wronged by your servicer.