Lincoln’s Nelnet Inc. announced the formation of a strategic relationship with the Rhode Island Student Loan Authority today, a non-profit state authority headquartered in Warwick. According to a release distributed by PR Newswire, the venture facilitates the sale of a portion of the loan authority’s existing and future student loan portfolio and is a unique arrangement between a for-profit student loan company and a quasi-state agency.
Proceeds from the loan portfolio sale will be directed to education- related programs within the state, supporting Rhode Island’s continued efforts to aid needy students. As a part of the transaction, an additional $500,000 in scholarships for Rhode Island students will be funded directly by Nelnet.
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A March date has been set for the loan portfolio transaction between the two organizations.
Through the agreement, three RISLA employees will remain with the organization and Nelnet will assume the employment of the remaining 22. If successful, Nelnet may increase employment in Rhode Island. The company will also assume the rights to the agency’s student loan origination platform. RISLA will maintain its Warwick headquarters and Executive Director Charles Kelley will continue to lead the management team.
Nelnet is one of the leading educational finance companies in the United States and is focused on providing quality student loan products and services to students and schools nationwide. With over $11 billion in total assets, Nelnet originates in excess of $2 billion for itself and its service partners annually, services more than $18 billion in student loans, and provides servicing software for an additional $27 billion in student loans.
