A federal judge will review a $10 million Nelnet student loan data breach settlement affecting millions of borrowers, including those in Texas. The hearing is scheduled for May 5, 2026, at the U.S. District Court for the District of Nebraska.
Complaints against Nelnet were filed on August 30, 2022. The lawsuit alleges that Nelnet failed to take reasonable steps to protect consumers’ personal information during a data breach in 2022.
The settlement impacts an estimated 2,501,324 borrowers whose data was compromised. Individuals whose personal information was exposed may qualify for up to $5,100 in cash compensation, as well as credit monitoring and identity protection services.
Nelnet began notifying borrowers about the incident on July 21, 2022. The court will consider whether the settlement is fair, reasonable, and adequate during the hearing.
Key facts:
- A federal judge will review a $10 million Nelnet student loan data breach settlement.
- The hearing is set for May 5 at the U.S. District Court for the District of Nebraska.
- The lawsuit alleges that Nelnet failed to protect personal information during a data breach.
- The settlement affects approximately 2,501,324 borrowers.
- Compensation includes up to $5,100 per individual and additional services.
The court will also consider whether to approve requests for attorneys’ fees and litigation expenses. However, officials have not confirmed how long the Fairness Hearing will take or when a decision will be made.
