In March 2020, Nelnet officially received approval from the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions (UDFI) to launch Nelnet Bank – an industrial bank in Salt Lake City, Utah.
After months of hard work, we’re incredibly excited about Nelnet Bank’s launch – but we understand there are a lot of questions about the bank itself. There’s still much to come about Nelnet’s newest business line, but this should give you an idea of how the bank will operate and grow.
Why is Nelnet starting a bank?
Diversification and growth is nothing new for Nelnet. Originally, Nelnet already offered student loan refinancing and private student loans through U-fi From Nelnet.
Nelnet Bank is an evolution of that company. By becoming an industrial bank, we’re able to more fully serve customers, associates, and communities across the country.
What will Nelnet Bank actually do?
As an internet bank, we won’t have any in-person branches. Right now, we’re focused on offering student loan refinancing – which allows student loan borrowers to “trade in” multiple loans in exchange for one loan (which often results in a lower interest rate).
Nelnet Bank also offers commercial certificates of deposit (CDs). Generally speaking, CDs, which act similarly (but not identically) to savings accounts – a business can deposit money into the account, and the amount will grow over time.
Down the line, we’ll also offer private student loans and deposit accounts.
Who’s leading Nelnet Bank?
Most of the leadership lives in Utah, where the bank is headquartered.
Andrea Moss, CEO and president (UT)
Julie Buchholz, COO and community reinvestment act officer (UT)
Cindy Fulton-Serrano, CFO and treasurer (NE)
Lauren Chapman, Chief Compliance Officer (UT)
Heath Roehr, Chief Technology Officer (NE)
Rob Pedersen, Chief Credit Officer (UT)
Jennifer Mackintosh, Chief Risk Officer (UT)
Mark Heiser, Chief Development Officer (NE)
Why is it located in Utah?
Nelnet as a whole is still headquartered in Lincoln, Nebraska – but Nelnet Bank’s headquarters are in Salt Lake City, Utah. It’s a new neighborhood for Nelnet, but we’re working closely with community leaders and excited to make connections. We can’t wait to serve Utah communities and people across the country in new ways.
Curious about what else is going on at Nelnet? Take a closer look at who we are and what we do.