(Lincoln, NE) -- A Lincoln-based student loan servicer is set to lay off hundreds of employees.
This week, Nelnet announced that it is laying off 350 recently hired employees due to what they call ‘excess staff capacity.’ Nelnet says the employees were hired in anticipation of the Biden Administration's Student Debt Relief Program, but a legal challenge to the program put it on hold. The company says it also expected a return to regular payments of federal student loans at the end of December, but the forgiveness window was extended due to that legal challenge.
Nelnet employs about 8,300 people. The company says most of the layoffs are outside of Nebraska.