$10M Nelnet Data Breach Settlement, Claim Up to $5,000 Cash by March 5, 2026
Nelnet, Edfinancial Services, and the Oklahoma Student Loan Authority agreed to pay $10 million to resolve claims they failed to prevent a 2022 data breach that compromised sensitive information of approximately 2.5 million student loan borrowers. If you received a breach notification letter about the August 2022 incident, you can claim up to $5,000 in documented losses, up to $100 for time spent, or a pro-rata cash payment—but only if you file by March 5, 2026 at NelnetSettlement.com.
Here’s what happened and how to get your share.
What the Nelnet Data Breach Involved
Between June and July 22, 2022, an unknown attacker exploited a vulnerability in Nelnet Servicing’s systems, gaining unauthorized access to borrower data stored on servers used by Oklahoma Student Loan Authority (OSLA) and Edfinancial Services.
The compromised data included names, addresses, phone numbers, email addresses and Social Security numbers. Nelnet discovered the breach on July 21, 2022, and publicly announced it on August 26, 2022.
The class action lawsuit alleged Nelnet failed to implement reasonable cybersecurity measures. The companies denied wrongdoing but agreed to settle to avoid litigation costs.
Who Can Claim Settlement Benefits
You’re eligible if your personal information was compromised in the data security incident publicly announced on August 26, 2022. This includes all U.S. residents who received breach notification letters from Nelnet, Edfinancial, or OSLA.
That’s the only requirement. If you got the notification, you’re automatically part of the settlement class.
Settlement Payment Options Explained
The settlement offers three compensation choices, but you can only pick one:
Option 1: Documented Out-of-Pocket Losses (Up to $5,000)
Class members who submit documented proof of out-of-pocket losses from the data breach are eligible to receive a one-time cash payment of up to $5,000. Covered expenses include identity theft costs, fraudulent charges, credit monitoring fees, bank fees, and professional services.
You’ll need receipts, account statements, or official documentation proving these expenses occurred after June 10, 2022.
Option 2: Lost Time Payment (Up to $100)
Class members may submit a claim for up to four hours of lost time spent remedying issues related to the data breach at a rate of $25 per hour. You’ll need to describe the time spent addressing breach-related issues.
Option 3: Pro-Rata Cash Payment
No documentation required for this option. You’ll receive a share of what remains in the settlement fund after paying documented claims, administrative costs, and legal fees.
California residents receive double the pro-rata payment due to state consumer protection laws.
Free Credit Monitoring for Everyone
All class members can elect to receive two years of credit monitoring and identity restoration services plus $1,000,000 in identity theft insurance with an approximate retail value of $187 per year. This benefit is available regardless of which cash payment option you choose.
How to File Your Claim Before the Deadline
Online Filing (Recommended): Visit NelnetSettlement.com and enter the unique ID and PIN from your settlement notice. The deadline is 11:59 p.m. Eastern Time on March 5, 2026.
Mail Filing: Download the PDF claim form from NelnetSettlement.com, complete it, and mail to: Nelnet Data Security Settlement c/o A.B. Data, Ltd. P.O. Box 173032 Milwaukee, WI 53217
The settlement administrator must receive mailed claims by March 5, 2026.
Don’t have your notice? You can still file a blank claim form at the settlement website if you believe you’re eligible.
Required Documentation for Claims
For documented losses: Attach receipts, account statements, or official letters showing expenses related to the breach.
For lost time: Provide a written description of actions you took and time spent.
For pro-rata payment: No documentation required.
When Will You Receive Payment
The settlement administrator will issue payments and credit monitoring information to eligible class members approximately 60 days after it completes claim processing or the court grants final approval of the settlement, whichever is later.
The final approval hearing is scheduled for May 5, 2026. Expect payments around late summer or early fall 2026, assuming no appeals.
What Happens If You Miss the Deadline
Missing the March 5, 2026 deadline means you forfeit your right to compensation and cannot sue Nelnet, Edfinancial, or OSLA separately over this data breach. The settlement binds all class members who don’t opt out.
Frequently Asked Questions
Can I claim both cash payment and credit monitoring?
Yes. Credit monitoring is available to all class members regardless of which cash payment option you choose.
Will I receive a 1099 tax form?
The settlement administrator will provide appropriate tax forms if your payment exceeds IRS reporting thresholds.
Can I opt out of the settlement?
Yes, but you must request exclusion in writing before March 5, 2026. Opting out means you receive no settlement benefits but can pursue your own lawsuit.
How much is the pro-rata payment?
The exact amount isn’t known yet and depends on how many people file claims, but estimates suggest $15-50 per person for the basic pro-rata option.
Where can I check my claim status?
Contact the settlement administrator at 1-877-388-1763 or [email protected] after filing your claim.
Last Updated: January 21, 2026
Disclaimer: This article provides informational content only and does not constitute legal advice.
Have questions about this settlement or other data breach class actions? Stay informed about your legal rights and compensation opportunities.
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About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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