Nelnet has refiled its application to establish a Utah-chartered bank that will provide local students with educational loans and services.
The company has submitted its application with the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions (UDFI).
If approved, the Nelnet Bank would serve as an internet bank. At the same time, it will have an office in Salt Lake City.
Nelnet Bank will begin operations with an initial capital of $100m from the parent company.
Nelnet president Tim Tewes said: “Education decisions have a tremendous financial impact on families.
“We see a growing need for experienced lenders who can help students and families make informed education finance decisions that position themselves for lifelong success.
“With our decades of experience helping families afford an education with a focus on superior customer experience, tuition payment plans, and as an education loan lender and servicer, Nelnet can be an ideal alternative to bring new solutions to borrowers funding their education.”
Nelnet first filed its application in June last year. However, it withdrew the request in September 2018 to make an enhanced resubmission.
Nelnet is a US-based conglomerate offering educational services, technology solutions, telecommunications and asset management. The company also invests in real estate and promising start-ups.