As one the largest servicers of federally guaranteed student loans, Nelnet is a huge player in education finance. But its $25 billion portfolio of loans originated through a former public-private partnership is slowly sunsetting. So the company has been looking at ways to diversify.
One of the areas it has been dabbling in is private student loans, which borrowers use to fill the widening gap between what they can borrow from the government and the cost of attending college. Over the past several years, Nelnet has originated private student loans under various programs that have been discontinued. It has also acquired private student loans, directly from lenders and from third-party investors.