Nelnet to lobby on student loan bills
WASHINGTON --Student loan company Nelnet Inc. hired Avenue Solutions to lobby the federal government, according to a disclosure form.
The firm will lobby on several congressional bills regarding student loans, according to the form posted online Friday by the Senate's public records office.
In an investigation into the student loan market, New York Attorney General Andrew Cuomo alleged last month that a number of lenders were engaged in a discriminatory practice.
Lenders ranked colleges and universities based on the loan default rates of their students, he said. They then set higher interest rates on private loans for schools with poor records, regardless of students' personal credit histories.
A spokesman in his office had identified one of the lenders as Lincoln, Neb.-based Nelnet.
Nelnet had said that the company offers loan programs to institutions based on several factors, including the default rate.
Last month, Nelnet was also criticized in a U.S. Senate report, which said that a now-disbanded advisory board to the company rewarded members with donations to universities in exchange for attending meetings and providing ideas. The company said the board's actions were ethical and legal.
About a quarter of the $85 billion of the student loan industry is private and the rest is provided through government programs.
Under a federal law enacted in 1995, lobbyists are required to disclose activities that could influence members of the executive and legislative branches. They must register with Congress within 45 days of being hired or engaging in lobbying. 