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 at the U.S. District Court for the District of Nebraska. This decision could significantly impact approximately 2,501,324 borrowers whose data was compromised.
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 the data breach.
Nelnet began notifying borrowers about the incident on July 21, 2022. Individuals whose personal information was exposed may qualify for up to $5,100 in cash compensation, along with credit monitoring and identity protection services.
The court will consider whether the settlement is fair, reasonable, and adequate during the hearing. Officials have not confirmed how long the Fairness Hearing will last or when the Court will make its decision.
The Court will also consider whether to approve requests for attorneys’ fees and litigation expenses, along with any Service Awards for Plaintiffs. The outcome of this case holds significant implications for those affected by the data breach.
