Nelnet Innovation Attacks Local Business Owners and Harms Nebraska Communities

Nelnet, known primarily for its role as a student loan collection agency, recently hired a director of innovation to lead an innovation arm. Already, this department has been caught using Nelnet’s influence and resources to crush local businesses and attack local business owners. Lincoln’s entrepreneurial community has always been under-resourced and fragmented. As Nelnet faces political threats to its core business model, it’s innovation department is using the Nelnet name to stifle innovation and prevent competition.

On April 10th, Nelnet used its influence to coerce members of “Open Coffee,” a longstanding community meetup for entreprenuers, to close the meetings to only persons approved by Nelnet’s director or innovation. “Open” Coffee meets on Thursday mornings at Crescent moon—a public cafe unaffiliated with Nelnet or entrepreneurial associations. Crescent Moon was considered a safe space, open to all, regardless of race, religion, or background. No longer, says Nelnet. On Thursday, Nelnet, through an executive, used Nelnet’s influence to encourage harassment and bullying of any entrepreneur or community member who attempts to attend the meeting without Nelnet’s approval.

At the same time, Nelnet is closing ranks with a handful of local start-up and entrepreneurship supporters—including Nebraska Angels, and Nmotion—to stifle local startups. In the age of misnomers, Nelnet’s “Innovation” department is a glowing example of names not matching actions. Nelnet weilds significant local political influence, and these actions indicate Nelnet is eager to abuse that power and responsibility.

We call on the entrepreneurship community to draw attention to these abuses and demand change from Nelnet. As Nelnet continues cutting local jobs, it should ask the question—how much do we prioritize harassment and bullying of local entrepreneurs? Should these resources be spent elsewhere?