Nelnet Data Security Settlement: Credit Monitoring and Cash Benefits

The settlement class covers people in the United States whose personal information was compromised in the Nelnet data security incident. The notice lists specific exclusions, so receiving or not receiving this notice alone does not settle whether someone qualifies.

• You must be in the United States and have had personal information compromised in the incident.
• You are not included if you are one of the settling entities or certain related people, a covered judge or court staff member, a valid opt-out, or a person criminally responsible for the incident as described in the notice.

A valid claimant may choose credit monitoring. They may also choose one of two cash approaches: seek payment for out-of-pocket losses and lost time, or seek a pro rata share of the remaining money. The notice treats the two cash approaches as alternatives, while credit monitoring is available to all settling class members who choose it.

• Two years of credit monitoring, identity-restoration services, and $1 million in identity-theft insurance.
• A cash payment for approved out-of-pocket losses and lost time, or instead a pro rata cash payment from the remaining fund.
• California residents at the time of the incident who select the pro rata option receive twice the base pro rata amount.

No individual payment amount is promised. The available settlement money is reduced by specified court-approved costs before payments are distributed. The notice also says the payment amount depends on the relief selected and the number of approved claims.

• The notice does not give a set dollar amount for individual payments.
• A pro rata payment depends on the money remaining and the number of approved claims.
• Payments for losses and lost time depend on the information and documentation submitted and approved.
• The $10 million fund also pays court-approved taxes, administration costs, attorneys’ fees and expenses, and service awards.

Filing a timely, valid Claim Form is required for any settlement payment or benefit. Online claims have a stated Eastern Time deadline. Mailed claims must arrive at the claims administrator by the deadline.

• Complete a Claim Form online by 11:59 p.m. Eastern Time on March 5, 2026.
• Or mail the form so it is received by March 5, 2026.
• A postmark by that date is not enough for a mailed form under this notice.

The notice requires supporting documentation and information for a request involving out-of-pocket losses and lost time, but does not list the documents to provide. It also does not explain whether loss reimbursement and lost-time payment can be requested separately. The claims administrator may contact a claimant if the form is incomplete or defective.

• For the out-of-pocket loss and lost-time option, submit documentation and information with the Claim Form.
• The claims administrator reviews claims to confirm class membership and approve the claim.
• The notice does not identify the particular documents required or state a dollar cap for loss or lost-time payments.
• The notice does not say that proof of losses is required for the pro rata payment or credit monitoring option.

Doing nothing does not remove someone from the settlement class. It means no payment, while the person may still be bound by the settlement if the Court approves it. To leave the settlement instead, a person must submit a valid exclusion request by the separate deadline.

• You receive no settlement payment without a timely, valid Claim Form.
• If you qualify for the class and do not exclude yourself, you remain bound by the settlement and its release if approved.
• This can limit your ability to bring or continue claims against the settling entities based on the released claims.

Opting out means leaving the settlement. The request has detailed content and signature requirements, and it must be sent to the exclusions address—not the claims address. A person who opts out gives up settlement benefits but is not bound by the settlement if it is approved.

• Send a written Request for Exclusion by U.S. Mail or another delivery service; it must be received by March 5, 2026.
• The request must include the case name, the person's identifying information and claimant ID information from the short-form notice, a clear request to be excluded, and the required signature or signatures.
• An excluded person cannot receive settlement money or object to the settlement.

The May 5 hearing is not a payment date and does not itself mean the settlement has been approved. Even if the Court approves the settlement, appeals may follow, and the notice says that process can take a year or more.

• The Court is scheduled to hold the Fairness Hearing on May 5, 2026, at 10:00 a.m. in Lincoln, Nebraska.
• The Court will decide whether the settlement is fair and whether to approve requested fees, expenses, and service awards.
• The hearing date, time, location, or format may change. The notice says payment can also be delayed by appeals after approval.