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Federal judge gives go-ahead to student loan suit against Nelnet

Nebraska District Court Judge John Gerrard ruled May 22 that the national class-action lawsuit against Nelnet Inc. over alleged breaches of student loan contracts may proceed.

Jessica Olsen and Teri Smith initiated the case filed on their behalf by the Domina Law Group, among others. Gerrard's ruling allows four of the six claims filed against Nelnet to move forward.

The complainants alleged that the Lincoln, Neb.-based student loan service provider mismanaged their loans, preventing them from being able to pay the loans at lower interest rates and on more favorable terms.