A proposed $10 million class action settlement targets Nelnet Servicing, LLC—one of the largest U.S. student-loan servicers—along with Edfinancial Services and the Oklahoma Student Loan Authority (OSLA), after a data-security incident publicly disclosed in August 2022. The suit alleges an unauthorized intruder accessed Nelnet’s systems and exposed borrowers’ personally identifiable information, potentially including names, contact details, and Social Security numbers. Because loan servicers sit at the center of repayment—handling billing, account status reporting, and interactions that can affect credit and collections—borrowers can face added anxiety and real risk when sensitive data is compromised. The lawsuit was filed to hold the companies accountable for allegedly failing to adequately safeguard consumer information and to compensate affected individuals for the time, expense, and heightened identity-theft risk that can follow a breach. While the defendants deny wrongdoing, they agreed to settle to avoid the cost and uncertainty of continued litigation; if approved, class members who submit a valid claim by March 5, 2026 may receive credit monitoring/identity-theft protection and/or a cash payment, with additional amounts potentially available for documented losses or time spent responding to fraud. The case is significant because it underscores that even routine financial infrastructure—like student-loan servicing platforms—can become a high-value target, and remediation often comes through class actions that fund monitoring, reimburse out-of-pocket losses, and pressure organizations to strengthen security practices. This settlement fits a broader pattern of data-breach class actions across financial services, healthcare, and education-adjacent industries, where plaintiffs typically argue that companies should have used stronger controls, faster detection, and clearer notification practices to reduce harm. Student-loan servicers operate in a heavily regulated environment that includes federal privacy and security expectations for handling borrower data and, depending on the state, data-breach notification laws that govern how and when consumers must be informed—rules that have become more consequential as repayment resumes and borrowers’ financial lives are already under strain from delinquencies, credit impacts, and potential collections processes.