Nelnet Applies to Create Bank Services

Nelnet announced Tuesday, it has re-filed its application with the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions (UDFI) to establish Nelnet Bank, a Utah-chartered industrial bank.

If the charter is granted, the company’s bank lending services that are FDIC-insured will be offered to the private education loan marketplace. With many sources of funding, Nelnet Bank would act as a source of funding for education-seeking costumers throughout all markets.

“Education decisions have a tremendous financial impact on families,” said Tim Tewes, president of Nelnet. “We see a growing need for experienced lenders who can help students and families make informed education finance decisions that position themselves for lifelong success. With our decades of experience helping families afford an education with a focus on superior customer experience, tuition payment plans, and as an education loan lender and servicer, Nelnet can be an ideal alternative to bring new solutions to borrowers funding their education.”

In June 2018, Nelnet filed its initial bank application with the FDIC and UDFI, before withdrawing its application in September 2018 following disagreements with the FDIC and UDFI.

“The bank’s goal is to help students and families make their educational dreams possible with financial planning and features that promote informed financial decisions as well as healthy spending and savings habits,” said Andrea Moss, chief executive officer and president of Nelnet Bank. Moss goes on to say “”when borrowers and their families exhaust their federal student loan options, Nelnet Bank would be a place where they can turn to further fund their education. Nelnet Bank would also offer refinance options to help borrowers obtain better interest rates.”