Item 1.01 Entry into a Material Definitive Agreement.
On November 25, 2019, each of Nelnet Servicing, LLC ("Nelnet Servicing") and Great Lakes Educational Loan Services, Inc. ("Great Lakes"), both subsidiaries of Nelnet, Inc. (the "Company"), received a Modification of Contract (each a "Modification," and collectively the “Modifications”) from the United States Department of Education (the "Department"), pursuant to which the Department modified the indefinite quantity clause under the previously reported student loan servicing contracts between the Department and each of Nelnet Servicing and Great Lakes (the "Servicing Contracts") to allow the Department to continue to order student loan servicing services under the Servicing Contracts for a period of up to an additional two years from December 15, 2019 through December 14, 2021. On November 26, 2019, Nelnet Servicing and Great Lakes each received an Order For Commercial Items from the Department under their respective Servicing Contracts, ordering student loan servicing services for the period from December 15, 2019 through December 14, 2020, and providing for two potential additional six-month orders for such services at the Department’s option. As previously reported by the Company, Nelnet Servicing and Great Lakes are two of four private sector companies awarded a student loan servicing contract by the Department in June 2009 to provide additional servicing capacity for loans owned by the Department, with five additional not-for-profit servicers subsequently added by the Department, and with new loan volume currently being allocated among the total of nine servicers based on certain performance metrics established by the Department. Prior to the Modifications, the Servicing Contracts provided for expiration on December 15, 2019, which reflected previous modifications reported by the Company in a Current Report on Form 8-K filed on May 17, 2019. Loan servicing volumes under the Servicing Contracts, as amended by the Modifications, will remain subject to the existing terms and conditions of the Servicing Contracts.
Copies of the Modifications received by Nelnet Servicing and Great Lakes are filed as Exhibits 10.1 and 10.2, respectively, to this report.
In addition, Nelnet Servicing’s current Authority to Operate as a loan servicer for the Department, which was previously scheduled to expire on December 13, 2019, has been extended through November 2022.