Abraham Jewett  |  September 8, 2022

Category: Data Breach
Illustrative Editorial of NELNET.COM website homepage. NELNET logo visible on display screen.
(Photo Credit: II.studio/Shutterstock)

Nelnet data breach class action lawsuit overview: 

  • Who: Michael Varlotta filed a class action lawsuit against Nelnet Servicing LLC. 
  • Why: Varlotta claims Nelnet failed to safeguard the personally identifiable information of its student loan borrowers during a recent data breach. 
  • Where: The class action lawsuit was filed in Nebraska federal court. 

Student loan services company Nelnet failed to properly secure and safeguard the personally identifiable information of more than 2.5 million borrowers during a recent data breach of its servers, a new class action lawsuit alleges. 

Plaintiff Michael Varlotta claims Nelnet bears responsibility for a data breach of its servers which exposed borrowers unencrypted and unredacted names, phone numbers, email addresses, and Social Security numbers. 

“Plaintiff’s and Class Members’ unencrypted, unredacted PII was compromised due to Nelnet’s negligent and/or careless acts and omissions, and due to the utter failure to protect Class Members’ sensitive data,” states the Nelnet class action. 

Varlotta argues Nelnet, in addition to allegedly failing to safeguard the data, also “failed to provide timely, accurate and adequate notice” to student loan borrowers who were affected by the Nelnet data breach. 

“Current and former borrowers’ knowledge about what PII Nelnet lost … was unreasonably delayed by Nelnet’s unreasonable notification delay after it first learned of the data breach,” states the Nelnet class action. 

Varlotta wants to represent a nationwide class of student loan borrowers whose personally identifiable information was compromised in the Nelnet data breach announced by the company in August 2022. 

Nelnet accused of failing to explain why it took more than a month to notify borrowers about the data breach

Nelnet notified state attorney generals on or around Aug. 26 that unauthorized individuals had gained access to its systems and acquired and accessed files on its network, according to the Nelnet class action. 

Varlotta claims Nelnet chose not to notify student loan borrowers, however, on July 21, “instead choosing to address the incident in-house by implementing other alleged safeguards to some aspects of its computer security.” 

Nelnet subsequently “failed to explain” why it took over a month for it to notify student loan borrowers to alert them that their personally identifiable information had been exposed in the data breach, the Nelnet class action alleges. 

Varlotta claims Nelnet is guilty of negligence, unjust enrichment, invasion of privacy, and breach of implied contract. 

Plaintiff is demanding a jury trial and requesting declaratory and injunctive relief along with an award of actual, nominal, consequential, and punitive damages for himself and all class members. 

Last month, President Joe Biden announced that he would be forgiving up to $20,000 for student loan borrowers across the country and extending the repayment moratorium through the end of the year. 

Was your personally identifiable information exposed in the Nelnet data breach? Let us know in the comments! 

The plaintiff is represented by J.L. Spray and Jacob C. Garbison of Mattson Ricketts Law Firm, and Brandon M. Wise of Peiffer Wolf Carr Kane Conway & Wise, LLP. 

The Nelnet data breach class action lawsuit is Varlotta v. Nelnet Servicing LLC, Case No. 4:22-cv-03188, in the U.S. District Court for the District of Nebraska.


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261 thoughts onNelnet class action claims data breach exposed personal information of more than 2.5M individuals

  1. Nicole (Holly) Robertson says:

    I would like to be included in this lawsuit. I didn’t get a letter about the data breach and am worried about who has my information. Also the 20,000 that Joe Biden approved has not been deducted from the account nor have I been informed when it would.

    1. Jessica Newman says:

      I did not get a letter and do not know if my information was compromised. I also do not have trust that Nelnet would have told me. A fraudulent account with discover was opened but they called me to verify and I was able to inform them it was a fraudulent account. Unfortunately, Our Lady of the Lake University also experienced a data breech (months ago) and only just last week informed me of it.

  2. Wilfrid Stephens says:

    I want to be included in this lawsuit. I have received many calls emails and mail from people and businesses I haven’t given my information to.

  3. Brianna Otero says:

    I would like to be included in this lawsuit. I got a letter about the data breach and am worried about who has my information.

    1. Janelle N Yellock says:

      I would like to be apart of lawsuit against doordash because I was hacked and charged for food I didn’t buy plus the membership fee was a issue 9.99 I was being charged too much too fast

  4. Cara moore says:

    I got the email that my information was compromised through nelnet.

  5. Bernardo S. Navarro says:

    When I was in junior college Nelnet had my student loans and when making payments there wasn’t any posting on it. Indeed, when I recall making a $500.00 payment on one loan and another loan $500.00 those two payments never show up days later after submitting those payments. Afterwards, it was only small payments of $100.00 that would be post but the interests will be ridiculously high in the 60.00 range.

  6. Jocelyne says:

    I had 2 loans Ive never applied for from Nelnet added to my credit. I wasnt even going to school. Never applied. Now I have 2 huge amounts from Nelnet on my credit and I dont know what to do. No idea where they came from. Please help.

    1. Sheral Rolfe says:

      Please add me. I had nelnet for many years and have been having ongoing issues with my personal info.

  7. Miera Richee says:

    I received a letter on September that my data was breached.

  8. Antoinette L Bailey says:

    I have had loans with Nelnet for several years now and was never notified about the data breach. I would like to be added to the lawsuit if I qualify.

  9. Latoya Smith says:

    I wasn’t aware of any data breach please add me to this lawsuit

    1. Marsha Barrett says:

      My loans have been serviced with Nelnet for many years. I was not aware of the data breach. Please add me to the class action lawsuit.

  10. Laurie Hays says:

    I have had loans with Nelnet for several years now and was never notified about the data breach. I would like to be added to the lawsuit if I qualify.

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