Shares of financial solutions provider Nelnet (NYSE:NNI) are in the spotlight today after the company announced a headcount trim owing to reduced pricing and servicing volume in federal servicing contracts.
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The move is also aimed at Nelnet’s strategic consolidation and sunsetting of certain loan servicing systems.
The recent contract modification (March 22) by the Department of Education has lowered the price earned by Nelnet per borrower. Further, the department is also transferring 1 million borrowers from Nelnet to another servicer.
Consequently, about 550 positions have been eliminated at the company. shares of the company are down nearly 3% in the pre-market session today already.
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