Nelnet awarded contract by the U.S. Department of Education Office of FSA

Nelnet announced its Nelnet Diversified Services division has been awarded a Unified Servicing and Data Solution, or USDS, contract by the U.S. Department of Education Office of Federal Student Aid, or FSA. The 5-year federal contract, with possible extensions up to 10 years, will replace existing legacy student loan servicing contracts for Direct Loans and federally managed Federal Family Education Loan, or FFEL, Program loans and will be centered on providing superior customer service to federal student loan borrowers through measurable service-level agreements and performance metrics. No immediate changes will impact student loan borrowers as the full terms of the agreement are expected to go live in 2024. According to the Department, the legacy servicer contracts will be extended through December 2024 to help facilitate a smooth transition for borrowers.