Nelnet Asked to Return Alleged Overpayments on Student Loans

Nelnet (NYSE: NNI) announced today it received a draft audit report from the Office of Inspector General of the Department of Education (OIG) related to the OIG audit of Nelnet’s portfolio of student loans receiving 9.5% special allowance payments.

The draft audit report raises issues of a technical nature concerning the company’s qualification for the special allowance payments and recommends Nelnet be required to return what the OIG contends to be overpayments in connection with certain loans receiving a 9.5% special allowance payment and exclude such loans from future requests for such payment.

Nelnet disagrees with the OIG’s draft findings and recommendations and will comment accordingly on the draft report before any final report is issued.

The Department of Education may accept or reject any findings or recommendations contained in any final report issued by the OIG. Nelnet believes it has qualified and billed for the special allowance payments in accordance with applicable laws, regulations, and Department of Education guidance; however, the company cannot predict the final outcome of this matter.