Nelnet Student Loan Servicing $10M Data Breach Settlement

Individuals who had their personal information compromised in the Nelnet data breach made public in August 2022 may be eligible to claim up to $5,100 and credit monitoring from a class action settlement. The data breach affected an estimated 2,501,324 current and former Edfinancial and Oklahoma Student Loan Authority account holders.

Nelnet Servicing, along with Edfinancial Services and OSLA, agreed to pay $10 million to settle a class action lawsuit alleging it failed to implement adequate data security measures, leading to unauthorized third party access to sensitive personal information, including the names, addresses, email addresses, phone numbers and Social Security numbers of more than 2.5 million individuals.

Who can file a claim for a data breach payout?

Class members are individuals in the United States whose personal information the Nelnet data breach, which the company announced in August 2022, compromised.

How much is the class action settlement payment?

Class members have the following benefit options:

• Credit monitoring and identity theft protection: All class members can elect to receive two years of credit monitoring and identity restoration services plus $1,000,000 in identity theft insurance with an approximate retail value of $187 per year.
• Cash payment for documented out-of-pocket losses: Class members can claim up to $5,000 in documented out-of-pocket losses traceable to the data breach. Eligible losses may include monetary losses from identity theft or fraud, credit freezing fees, or costs of services and damages resulting from fraudulent tax returns.
• Cash payment for lost time: Class members can claim up to four hours of time spent addressing issues related to the breach at $25 per hour for a maximum of $100.
• Pro rata cash payment: Class members who do not claim out-of-pocket losses or lost time may submit a claim to receive a cash payment from the remaining settlement fund. The settlement administrator will determine the final payment amount by the total number of claims filed.
• California residents at the time of the breach will receive double the base pro rata amount.

How to claim a data breach class action rebate

Class members can file a claim online or download, print and complete the PDF claim form to mail to the settlement administrator.

Settlement administrator's mailing address: Nelnet Data Security Settlement, c/o A.B. Data Ltd., P.O. Box 173032, Milwaukee, WI 53217

Class members must submit a claim online by 11:59 p.m. Eastern Time on March 5, 2026. If they mail the claim form, the settlement administrator must receive it no later than March 5, 2026.

Required proof and claim information

• To submit a claim, class members must provide the unique ID and PIN from the settlement notice they received.
• To submit an out-of-pocket loss claim, class members must provide supporting documentation, such as receipts, account statements or official letters.
• To submit a California resident claim, class members must provide their California address.

Payout options

• Digital payment, which may include PayPal, Venmo, Apple Pay or Amazon
• Paper check

$10 million Nelnet data breach settlement fund

The $10,000,000 settlement fund will include:

• Settlement administration costs: At least $400,000
• Attorneys’ fees: Up to $3,333,333
• Attorneys’ expenses: Up to $65,000
• Service awards to class representatives: Up to $1,500 per named plaintiff ($40,500 total)
• Credit monitoring and identity theft protection: Cost determined by number of claims filed
• Payments to approved claimants: Remaining settlement funds

Important dates

• Deadline to file a claim: March 5, 2026
• Opt-out deadline: March 5, 2026
• Fairness hearing: May 5, 2026

When is the Nelnet settlement payout date?

The settlement administrator will issue payments and credit monitoring information to eligible class members approximately 60 days after it completes claim processing or the court grants final approval of the settlement, whichever is later.

Why is there a class action settlement?

The class action lawsuit alleged that Nelnet, Edfinancial and OSLA failed to implement reasonable data security measures, which resulted in a data breach. The plaintiffs claimed this led to fraud, identity theft and other injuries.

The defendants denied the allegations but agreed to settle to avoid the expense and risk of further litigation and a possible trial.

Sources

1. Class notice
2. Settlement website FAQ page
3. Settlement claim form
4. Settlement agreement