Nelnet Data Breach May Have Affected Over 2 Million Student Borrowers | Local business news

A data breach at Nelnet may have exposed the data of approximately 2.5 million student borrowers served by Edfinancial Services and the Oklahoma Student Loan Authority.

Nelnet said that on July 21, it notified affected student loan servicers using the company’s management system of an incident affecting the website used by borrowers. According to the Lincoln-based company, an unknown party accessed “certain student loan account records” between early June and late July.

“Our cybersecurity team discovered a vulnerability that allegedly led to this incident and took immediate action to secure the systems, block suspicious activity, and resolve the issue,” Nelnet said in a statement. “The Department of Education has also been notified and we have launched an investigation with third party forensic experts to determine the nature and extent of the activity.”

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The statement said Nelnet and the Department of Education have contacted law enforcement and are cooperating with the investigation.

Nelnet said a forensic examination found the information involved included names, addresses, email addresses, phone numbers and social security numbers of borrowers, but not financial account numbers or payment information. . There has been no known unauthorized use of this information, the statement said.

The data breach had no impact on borrowers served directly by Nelnet or its Great Lakes subsidiary, the company said.

Nelnet said affected borrowers were offered 24 months of free credit monitoring and identity theft protection services.

“Protecting the personal information that customers, customers and associates entrust to Nelnet is a top priority,” the company said in its statement. “Nelnet takes data protection seriously and is committed to continuing to take steps to ensure information security.”

The company is already facing a class action lawsuit related to the data breach.

The lawsuit, with Jesse Herrick named as the lead plaintiff, was filed in U.S. District Court in Nebraska on Tuesday. She seeks an unquantified amount of actual and punitive damages.

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