Biden's stalled debt relief led to the loss of jobs at a major student loan company

Written by: Vasantha


President Joe Biden's debt relief caused over 500 employees to lose their jobs at a major student loan company.

A Nelnet employee told Insider that 560 employees were being laid off on Wednesday. As the relief was implemented and student-loan payments were turned back on, 350 employees were hired over the past six months to help with what was expected to be high call volume.

Since October, two conservative lawsuits blocked debt relief, and Biden extended student loan payments past December 31. Unless the lawsuit is resolved first, it will end 60 days after June 30. Those additional employees didn't have work, Nelnet said.

Nelnet's executive director of corporate communications, Ben Kiser, said these decisions are never easy. In light of the delay in federal student loan repayments through much of 2023, it is not feasible to staff up for work that is on hold."

Nelnet Diversified Services (NDS) terminated 350 employees since August, while 210 others were laid off due to poor performance.

"When repayment resumes, we will continue seeking opportunities to redeploy eligible associates, and we hope many will reapply to join our NDS team," Kiser said.

This is not Nelnet's first layoff during a student loan pause. Nelnet laid off 150 employees in May 2022, explaining in an email that the student-loan payment pause had limited some teams' work.



TO KNOW ABOUT 81-year-old Crosby, Stills & Nash co-founder die CLICK HERE TO EXPLORE