What the word NELNET means to your Student Debt in 2020
The conversation about the government forgiving student loan debt until you understand who’s really owns the debt.
Recently, one of the nation's largest student loan servicers, agreed to purchase a competitor student loan servicer, Great Lakes Higher Education Corp., for $150 million in an all-cash transaction.
According to Zach Friedman Senior Contributor at Forbes.com, Nebraska-based Nelnet Inc. is now the largest servicer of Federal Student Loans and represents a significant consolidation in the student loan servicing sector.
Reporter Jillian Berman explains in her 2018 article how this one company, Nelnet Inc. will now handle close to half of all student-loan payments. She goes deep into what the merger of two payment processors means for America’s $1.4 trillion student-loan burden.
In August of 2003, Student loan provider Nelnet Inc., formally the National Education Loan Network, Inc., filed a $200 million initial public offering.
Nelnet Inc. bills itself as a vertically integrated education finance company, "focused on providing quality products and services to participants in the education finance process.” It specializes in the Federal Family Education Loan Program. The program you know by its government name "The Department of Education".
Nelnet Inc. finished out 2002 as the fourth largest holder and second largest servicer of FFELP loans. Steve Gelsi boast how Nelnet Inc. rang up $17.9 million in net income and $91.9 million in net interest income in the first six months of 2003 and $116.1 million in net interest income in the year-ago period.
Nelnet Inc. owns over 50 subsidiaries that administer and collect student loans throughout the United States.
But what does this all mean?
Nelnet Inc. currently trades on the New York Stock Exchange under the symbol NNI and its stock price has nearly tripled since 2003 when it was trading for less than $23 a share.
When profits are this good, who wants to sell???