Nelnet
Nelnet is a major federal student loan servicer managing approximately 14.5 million borrower accounts on behalf of the U.S. Department of Education. The publicly traded company (NNI) also operates Nelnet Bank for private student loan refinancing, ALLO Communications for fiber internet, and Nelnet Renewable Energy for solar investments.
Score generated by AI agents based on publicly cited evidence and reviewed by the project maintainer. Not independently validated.
Score History
Timeline events are AI-curated from public reporting. Score trajectory is derived from documented events.
Nelnet was founded in Lincoln, Nebraska as a private FFEL lender by Mike Dunlap and Steve Butterfield. In the FFEL era, Nelnet operated as one of many private lenders making government-guaranteed student loans, with moderate lock-in inherent to the loan assignment system but limited extraction vectors. Enshittification risk was low because borrowers at least had some lender choice and multiple market participants competed for school partnerships.
Nelnet's December 2003 IPO established the dual-class share structure giving Mike Dunlap disproportionate voting control. Simultaneously, the company had begun exploiting the 9.5% subsidy loophole in 2003, increasing qualifying loan volume from $393 million to over $3.3 billion by 2004. The IPO created shareholder extraction pressure while the subsidy scheme demonstrated willingness to game federal programs. Preferred lender list kickbacks to universities further consolidated market access.
The 9.5% subsidy scandal exposed Nelnet's $278 million overbilling and the preferred lender kickback investigation by NY Attorney General Cuomo revealed systematic payments to universities for lending access. Despite keeping the $278 million in a favorable settlement, Nelnet faced intensified regulatory scrutiny and reputational damage. The FFEL system's structural lock-in remained, and the company's willingness to exploit regulatory gaps was now documented.
Congress terminated the FFEL program in 2010, forcing Nelnet to transition from private lending to government contract servicing. Nelnet won a Direct Loan servicing contract, but the new model deepened lock-in: borrowers lost even the limited choice FFEL allowed, as the Department of Education now assigned servicers unilaterally. The $55 million False Claims Act settlement for the 9.5% scandal demonstrated Nelnet's regulatory exposure, while the per-borrower payment model created structural incentives to minimize servicing costs.
Nelnet's $150 million acquisition of Great Lakes created the nation's largest student loan servicer with $455 billion in loans for 16.2 million borrowers. The deal eliminated a major competitor in a market where borrowers already had no choice. IDR recertification failures documented from 2013-2017 showed systematic communication breakdowns, while the DeVos Education Department's federal preemption interpretation shielded servicers from state enforcement. CFPB reports documented illegal IDR application denials across the industry.
The COVID-19 payment pause suspended borrower payments for 3.5 years while Nelnet accelerated diversification into ALLO Communications, renewable energy, and education technology. Nelnet Bank launched in November 2020 as a private student loan refinancing operation, creating a structural conflict of interest between servicing federal loans and profiting from converting them to private products. Nelnet lobbied against extending the moratorium while the 2022 data breach exposed 2.5 million borrowers' personal information including Social Security numbers.
The return to repayment in October 2023 exposed catastrophic servicing failures: over 3.9 million billing errors across servicers, 70-minute average call wait times, and 48% call abandonment rates. Nelnet laid off over 1,100 employees in 2023 while the DOE reduced per-borrower contract payments. The MOHELA-Nelnet transfer caused nearly 2 million duplicate credit reporting errors. Multiple class actions were filed, including Stevens v. Nelnet for SAVE plan miscalculations showing payments inflated by multiples over the statutory formula.
Nelnet's enshittification accelerated as the CFPB gutted student loan oversight under acting Director Russell Vought, removing the primary federal consumer watchdog. Despite record CFPB complaints (3,537 in 2024, up 114.6%), multiple active class actions, and a $10 million data breach settlement, Nelnet reported record profits of $184 million with $83.3 million in share buybacks. Michael Dunlap's 80.6% voting control through dual-class shares ensures the founding family faces no governance accountability while borrowers remain captive to government assignment with no ability to switch servicers.
Alternatives
Another well-regarded private refinancing option for borrowers with Nelnet Bank private loans, offering flexible repayment terms and competitive rates. The same critical warning applies: federal borrowers have no option to leave Nelnet, as the Department of Education assigns servicers and borrowers cannot request transfers regardless of service quality.
If you have private student loans serviced by Nelnet Bank, refinancing through SoFi can get you out of Nelnet's ecosystem at competitive rates. Easy to apply online. Do not refinance federal loans into private loans — you permanently lose income-driven repayment eligibility, PSLF eligibility, and federal discharge protections.
Dimensional Breakdown
Summaries below were written by AI agents based on the cited evidence. They are editorial interpretations, not independent research findings.
Dimension History
Timeline (43 events)
FFEL Loan Structure Establishes Lender Lock-In for Borrowers
Under the Federal Family Education Loan Program, once a borrower took out a student loan from a private lender like Nelnet, the loan was held by the originating lender or its assignees. Borrowers could not transfer individual loans to a different servicer or lender during repayment. The only mechanism to change lenders was federal loan consolidation, which reset repayment clocks and could alter interest rates. Guarantee agencies administered the loans regionally, and lenders could sell or transfer loans to secondary markets without borrower consent, creating a system where the borrower's relationship with their lender was effectively permanent absent consolidation.
Nelnet Acquires UNIPAC Service Corporation
Nelnet purchased UNIPAC Service Corporation, a Denver-based loan servicing company founded in 1978, expanding its loan servicing capabilities beyond its Lincoln, Nebraska base. The acquisition also included In Tuition, Inc., a Jacksonville-based servicing company. These early acquisitions established Nelnet's consolidation-driven growth strategy in the FFEL lending market.
Preferred Lender List Practices Limit Borrower Choice
Under the FFEL program, schools maintained preferred lender lists that steered students toward specific lenders including Nelnet. While federal law gave borrowers the right to choose any FFEL lender, schools could not deny or delay certification for non-preferred lenders. In practice, the preferred lender list system created significant lock-in: most students selected lenders from their school's list without comparison shopping, and schools had financial incentives to direct volume to specific lenders who provided kickbacks, staff support, and revenue-sharing arrangements.
Nelnet Begins 9.5% Subsidy Exploitation Scheme
Nelnet created a special project to increase loans receiving a grandfathered 9.5% guaranteed interest rate that Congress had phased out in 1993. By recycling proceeds from pre-1993 loans into new loan vehicles, Nelnet increased its claims from $393 million in 2001 to over $3.3 billion in 2004, ultimately overbilling the federal government by $278 million between January 2003 and June 2005.
Nelnet IPO Raises $164 Million on NYSE
Nelnet completed its initial public offering on the New York Stock Exchange under ticker NNI, raising approximately $164 million in net proceeds. The IPO established a dual-class share structure giving co-founder Michael Dunlap disproportionate voting control. This structure would entrench founding-family governance for the next two decades.
Inspector General Reveals $278 Million Overbilling
The Department of Education Inspector General released an audit finding that Nelnet overcharged the federal government by $278 million in subsidy payments on student loans from January 2003 to June 2005. The IG recommended the Department seek to recover the overpayments and halt future subsidy claims that could exceed $882 million. Education Secretary Margaret Spellings rejected the recovery recommendation.
Nelnet Settles 9.5% Scandal, Keeps $278 Million
Nelnet reached a settlement with the Department of Education allowing the company to keep the $278 million in disputed profits in exchange for ceasing the subsidy exploitation practice, forgoing an estimated $882 million in future profits. The settlement drew sharp criticism from Congress and consumer advocates who noted the Department failed to recoup any overpayments from taxpayers.
Preferred Lender Kickback Scandal Exposed — Borrower Choice Distorted
New York Attorney General Andrew Cuomo and Nebraska regulators accused Nelnet of providing kickbacks and gifts to colleges and universities to secure placement on preferred lender lists. Nelnet had agreements with 120 alumni groups, paid $50,000 to sponsor University of Maryland events in exchange for preferred status, and offered Wayne State University a full-time staff member, private loan pools, and $10,000 annual scholarships in exchange for lending volume. The scheme systematically distorted what limited borrower choice existed under FFEL, channeling students to Nelnet through financial incentives to schools rather than service quality.
Nelnet Lays Off 300 Employees as FFEL Market Contracts
Nelnet announced layoffs of approximately 300 employees, representing 10% of its workforce, as the FFEL lending market contracted due to congressional cuts to student loan subsidies and the 2008 financial crisis. The company simultaneously stopped accepting new consolidation loan applications. The layoffs demonstrated how Nelnet's cost-cutting response to revenue pressure fell disproportionately on front-line workers while the dual-class share structure insulated founding-family control from shareholder accountability during the downturn.
Nelnet Awarded Federal Direct Loan Servicing Contract
Nelnet was one of four servicers awarded an Indefinite Delivery/Indefinite Quantity contract by the Department of Education to service federal Direct Loans, with a maximum capacity of 50 million borrower accounts across a five-year base period with a five-year option. The contract established the captive-borrower servicing model: unlike FFEL where borrowers had at least limited lender choice, the Direct Loan system gave the Department sole authority to assign borrowers to servicers with no ability for borrowers to opt out or request transfers regardless of service quality.
Jon Oberg Whistleblower Lawsuit Against Nelnet Unsealed
A qui tam lawsuit filed under seal in September 2007 by former Department of Education researcher Jon Oberg was unsealed, alleging that Nelnet submitted approximately $407 million in unlawful 9.5% floor special allowance payment claims to the Department of Education. Oberg's research had originally prompted the Inspector General's audit that found the $278 million overbilling. Because False Claims Act damages are trebled, Nelnet faced potential liability exceeding $1.2 billion. The case would settle for $55 million in August 2010.
Nelnet Spends $2.78 Million Lobbying to Preserve FFEL Program
Between 2007 and mid-2009, Nelnet spent $2.78 million on lobbying as the student loan industry fought to defeat the Student Aid and Fiscal Responsibility Act (SAFRA), which would end the FFEL program and shift all lending to the Direct Loan program. Nelnet's PAC spent $398,731 on campaign donations since 2008, including $49,100 to Senator Ben Nelson (D-NE), whose former legislative director Amy Tejral lobbied for Nelnet through Avenue Solutions. The top 20 FFEL participants collectively spent nearly $14 million lobbying the federal government during this period, but Congress passed the legislation in March 2010, eliminating the FFEL program.
Nelnet Begins Direct Loan Servicing for DOE
Following the termination of the FFEL program under the Health Care and Education Reconciliation Act of 2010, Nelnet transitioned from private FFEL lending to federal Direct Loan servicing under contract with the Department of Education. Nelnet was one of four servicers awarded new contracts in June 2009, and began assigning Direct Loans on June 23, 2010, establishing a captive-borrower servicing model where borrowers could not choose their servicer.
Nelnet Pays $55 Million to Settle Whistleblower Lawsuit
Nelnet agreed to pay $55 million to settle a False Claims Act whistleblower lawsuit brought by former Department of Education researcher Jon Oberg. Oberg alleged Nelnet received $407 million in improper benefits from the 9.5% subsidy loophole. Because False Claims Act damages are trebled, Nelnet faced potential liability exceeding $1.2 billion had it lost at trial. The settlement included no admission of wrongdoing.
IDR Recertification Communication Failures Begin
Nelnet began a documented pattern of failing to comply with federal regulations requiring at least 60 days' notice before IDR recertification deadlines. Between 2013 and 2017, the Massachusetts Attorney General later found that Nelnet's notices failed to clearly explain consequences of missing deadlines, including estimated payment increases and interest capitalization. Some borrowers received no notices at all, causing them to lose IDR status and face sharply higher payments.
Nelnet Call Center Workers Report Low Pay and Metric-Driven Pressure
Nelnet call center employees documented working conditions characterized by starting pay of $16-17 per hour that dropped to $12-13 after health insurance deductions, strict schedule adherence policies with bathroom breaks counted against allotted break time, and management metrics prioritizing average handle time over borrower outcomes. Employee reviews described only 45 seconds between calls, performance scores below 3.0 out of 4.0 over three months triggering termination, and extreme turnover where only 3 of 20 new hires typically remained after two years. The dual-class share structure giving the Dunlap family 80% voting control ensured no governance accountability for these labor practices despite their direct impact on borrower service quality.
CFPB Student Loan Servicing Report Documents Systemic Failures
The CFPB published a major report on student loan servicing identifying widespread borrower harm from processing delays, surprise application denials, and lost paperwork that knocked borrowers off track when applying for income-driven repayment plans. The report documented how servicers including Nelnet created systemic barriers to affordable repayment options, establishing the groundwork for subsequent enforcement actions.
Nelnet Acquires ALLO Communications for $46 Million
Nelnet acquired 92.5% of ALLO Communications, a Nebraska fiber internet provider, for $46.25 million. The acquisition signaled Nelnet's strategy to diversify revenue away from student loan servicing into telecommunications. Nelnet subsequently invested hundreds of millions in ALLO network expansion across Nebraska and Colorado, redirecting capital from its core servicing obligations to unrelated businesses.
CFPB Examiners Cite Servicers for Illegally Denying IDR Applications
CFPB examiners cited student loan servicers for illegally denying borrowers' applications for income-driven repayment plans that should have been approved. The Bureau's annual student loan ombudsman report documented that servicers were systematically creating barriers to affordable repayment, with borrowers reporting inconsistent information from representatives, lost documentation, and unexplained processing delays.
DeVos Education Department Claims Federal Preemption of State Oversight
Secretary of Education Betsy DeVos published a legal interpretation asserting that federal law preempts state regulation of federal student loan servicers, arguing that state-imposed licensing requirements and consumer protection laws create 'conflicts' with federal oversight. Great Lakes, freshly acquired by Nelnet, signaled it would not comply with California's licensing requirements. The industry had lobbied heavily for this preemption, which would eliminate state-level enforcement as an accountability mechanism.
Nelnet Acquires Great Lakes for $150 Million
Nelnet completed its acquisition of Great Lakes Educational Loan Services for $150 million in cash, absorbing a major competitor. The combined entity serviced $455 billion in student loans for 16.2 million borrowers, including $397 billion in government-owned loans representing approximately 42% of all federal student loans. The deal eliminated a competitor that borrowers could not choose between anyway, further consolidating a market where servicer quality had no competitive consequence.
Great Lakes Integration Consolidates 1,800 Employees Under Nelnet Governance
Following the February 2018 acquisition, Nelnet began integrating Great Lakes' approximately 1,800 employees headquartered in Madison, Wisconsin into its corporate structure. While the two brands initially maintained separate servicing operations, shared services teams were consolidated under Nelnet's management framework, including the Dunlap family's dual-class voting control. The integration expanded Nelnet's workforce across multiple states while applying its existing call center management practices — including metric-driven performance evaluation prioritizing handle time over borrower outcomes — to the combined entity's employee base.
Olsen v. Nelnet Class Action Filed Over IDR Failures and Forbearance Steering
Student loan borrowers filed a class action lawsuit (Olsen v. Nelnet, Case No. 4:18-cv-03081) in Nebraska federal court alleging that Nelnet systematically failed to process income-driven repayment plan applications and recertifications in a timely manner, improperly cancelled borrowers' IDR plans before renewal deadlines, capitalized interest during Nelnet-caused processing delays that increased borrowers' principal balances, and steered struggling borrowers into forbearance rather than processing their IDR applications. The complaint alleged Nelnet had a financial incentive to delay processing because it continued collecting monthly servicing fees while loans remained active. In 2021, Chief Judge John Gerrard ruled the complaint contained plausible allegations and allowed the case to proceed to discovery.
PSLF Class Action Filed Against Nelnet for Forgiveness Program Mismanagement
Pierce Bainbridge Beck Price & Hecht LLP filed a class action complaint against Nelnet and FedLoan Servicing alleging widespread mismanagement of the Public Service Loan Forgiveness program. The complaint alleged Nelnet delayed placing borrowers into qualifying IDR plans, placed PSLF-seeking borrowers into ineligible payment plans, lost employment certification paperwork, and miscalculated qualifying payment counts. The lawsuit highlighted the fundamental opacity of servicer systems: borrowers had no independent way to verify their PSLF payment counts or confirm their payments were being applied to qualifying plans, creating an asymmetric information environment where servicer errors systematically harmed borrowers seeking forgiveness.
Nelnet Accelerates ALLO Communications Fiber Investment While Servicing Quality Stagnates
Nelnet continued investing heavily in its ALLO Communications fiber internet subsidiary, which grew from $15 million in revenue at acquisition in 2015 to a run-rate exceeding $100 million by 2019, while expanding into new Nebraska and Colorado markets. The aggressive capital deployment into telecommunications infrastructure occurred alongside continued student loan servicing complaints documented by the CFPB and active class action litigation over IDR processing failures. The investment pattern demonstrated Nelnet's strategy of redeploying government contract servicing revenue into higher-margin unrelated businesses rather than reinvesting in the borrower-facing service quality that generated the revenue.
COVID-19 Federal Student Loan Payment Pause Begins
The CARES Act suspended all federal student loan payments, halted interest accrual, and stopped involuntary collections. The pause would last over three years until October 2023. While providing relief to 43 million borrowers, the moratorium created workforce disruption at servicers. Nelnet lobbied against extending the pause in 2020 and 2021, spending $230,000 on CARES Act-related lobbying in 2020 and $110,000 in 2021.
Nelnet Bank Launches as Industrial Loan Company
Nelnet Bank began operations as the first new industrial loan company (ILC) to receive FDIC approval in 12 years, alongside Square (now Block). Based in Salt Lake City, Nelnet Bank would offer private student loan refinancing, creating a direct conflict of interest: the same company servicing federal loans now also profited when borrowers refinanced those federal loans into private products, losing IDR eligibility, PSLF eligibility, and federal discharge protections in the process.
Protect Borrowers Documents Systematic IDR Complaint Patterns
The Student Borrower Protection Center published a detailed complaint memo documenting patterns of Nelnet's IDR servicing failures, including systematic delays in processing recertification applications, failure to make requested payment adjustments for qualified borrowers, and interest capitalization resulting from Nelnet's own processing delays that increased borrowers' principal balances.
Data Breach Exposes 2.5 Million Borrowers' Personal Information
A cybersecurity vulnerability in Nelnet's systems allowed an unknown attacker to access personal information of approximately 2,501,324 student loan borrowers between June and July 22, 2022. Compromised data included names, addresses, email addresses, phone numbers, and Social Security numbers. The breach affected borrowers serviced by Oklahoma Student Loan Authority and Edfinancial Services through Nelnet's technology platform.
Nelnet Lays Off 560 Workers Amid Contract Changes
Nelnet laid off approximately 350 employees hired in anticipation of the Biden loan forgiveness program and terminated 210 associates for performance reasons. In March 2023, an additional 550 employees were cut after the Department of Education modified the contract to reduce per-borrower payments and announced it would transfer 1 million borrowers to another servicer. The layoffs occurred while Nelnet reported growing profits from its diversified businesses.
Nelnet Awarded New USDS Servicing Contract
Nelnet's Diversified Services division was awarded a 5-year Unified Servicing and Data Solution (USDS) contract by the Department of Education, with possible extensions up to 10 years. The contract replaced legacy servicing agreements for over 37 million borrowers allocated across five servicers. Despite documented servicing failures, Nelnet secured continued access to the captive borrower market with no mechanism for borrowers to opt out.
Great Lakes Portfolio Transferred to Nelnet Brand
Five years after acquiring Great Lakes, Nelnet completed the transfer of Great Lakes' federal student loan servicing portfolio into the Nelnet Federal Student Loan Services brand. The consolidation eliminated the last vestige of a separate servicing identity, concentrating all accounts under a single brand. Borrowers had no choice in the transfer and no recourse regarding the loss of Great Lakes' customer service infrastructure.
Return-to-Repayment Chaos: 3.9 Million Billing Errors
When federal student loan payments resumed after the 3.5-year COVID pause, Nelnet and other servicers made over 3.9 million billing errors collectively. Nelnet failed to send timely billing statements, call wait times surged from 12 minutes to over 70 minutes, and call abandonment rates reached 48.2%. Average email response times hit six weeks. The Department of Education withheld $13,000 from Nelnet as penalty -- a negligible amount relative to its $973 million annual revenue.
MOHELA-Nelnet Transfer Causes 2 Million Credit Reporting Errors
A Department of Education-directed transfer of student loans between MOHELA and Nelnet resulted in nearly 2 million duplicate student loan records appearing on borrowers' credit reports. Over 100,000 borrowers had incorrect credit scores for up to 18 months, with thousands seeing scores drop by more than 20 points. Borrowers submitted approximately 7,500 complaints and disputes. Both Nelnet and MOHELA deflected responsibility, blaming the Department of Education.
Massachusetts AG Settles with Nelnet for $1.8 Million
Massachusetts Attorney General Andrea Joy Campbell announced a $1.8 million settlement with Nelnet for failing to adequately communicate with borrowers about maintaining access to affordable income-driven repayment plans between 2013 and 2017. Nelnet's notices failed to meet federal requirements for 60-day advance notice of recertification deadlines and clear explanation of consequences. The settlement allocated $1 million to the General Fund and $800,000 to the Student Loan Trust Fund.
Senate Report Documents Decades of Servicer Misconduct
Senators Warren, Blumenthal, Markey, and Van Hollen released 'Servicing Scandals,' documenting decades of student loan servicer failures. The report found every servicer failed to prepare for the return to repayment despite federal funding, with over 3.9 million billing errors, call abandonment rates reaching 48%, and customer service scores repeatedly falling below DOE thresholds. The report recommended stronger enforcement and accountability mechanisms.
Stevens v. Nelnet: SAVE Plan Miscalculation Lawsuit Filed
A class action lawsuit (Stevens v. Nelnet Servicing, LLC) was filed alleging gross miscalculation of SAVE plan monthly payments. The named plaintiff enrolled with a $35,000 balance and monthly income of $5,833 but was billed $1,969/month when 10% of income would yield approximately $583. The miscalculated payments were reported to credit bureaus, causing the plaintiff to be denied a mortgage due to inflated debt-to-income ratio. The case is in discovery as of late 2025.
Senators Launch Credit Reporting Investigation into Nelnet and MOHELA
Senators Warren, Blumenthal, and Markey launched a formal investigation into the mishandling of student loan transfers between MOHELA, Nelnet, and credit reporting agencies. The investigation revealed that the servicer transfer caused nearly 2 million duplicate records on credit reports, with hundreds of thousands of borrowers affected for up to 18 months. Lawmakers urged the CFPB and DOE to use enforcement authority to ensure accountability.
CFPB Reports Record Student Loan Complaint Volume
The CFPB's annual Student Loan Ombudsman report analyzed over 18,000 student borrower complaints during the 2023-2024 award year, the highest complaint volume since the Bureau began collecting student loan complaints in March 2012. Nelnet received 3,537 CFPB complaints in 2024 alone, a 114.6% increase over its annual average. The report documented servicer errors with billing, customer service failures, and incorrect repayment information causing severe financial and personal distress.
Nelnet's Non-Servicing Revenue Streams Surpass Loan Servicing as Primary Business
By the end of fiscal 2024, Nelnet's diversified revenue portfolio demonstrated that student loan servicing had become one component of a broader extraction model. Education Technology Services and Payments generated $108.3 million quarterly, ALLO Communications reached a $200 million annual revenue run-rate, Nelnet Bank reported $4.2 million quarterly net income from private student loan refinancing, and renewable energy tax equity investments totaled approximately $600 million across 100+ solar projects. The Department of Education contributed only 21% of total company revenue. Nelnet Bank's continued operation as a private student loan refinancer created an ongoing structural conflict: the same company servicing 14.5 million federal borrower accounts also profited when those borrowers refinanced into private products, permanently losing IDR eligibility, PSLF eligibility, and federal discharge protections.
CFPB Oversight Gutted Under Acting Director Vought
Acting CFPB Director Russell Vought halted supervisory and enforcement activities targeting student loan servicers, withdrew a pending lawsuit against PHEAA, fired Student Loan Ombudsman Julia Barnard, and refused to comply with nearly 90 congressional mandates. The pullback effectively removed the primary federal consumer protection watchdog from student loan oversight, benefiting servicers including Nelnet. A federal judge later ordered partial reinstatement, but enforcement capacity remained severely diminished.
Nelnet Reports Record Profits While Servicing Quality Deteriorates
Nelnet reported $184 million in net income for fiscal year 2024, a 104.9% increase year-over-year, with $642 million in free cash flow. The company spent $83.3 million on share buybacks, a 197.2% increase from the prior year. CEO pay ratio reached 67-to-1 against median employee compensation of $40,517. Record profits came amid ongoing class actions, record CFPB complaint volumes, and documented billing failures affecting millions of borrowers.
$10 Million Settlement Resolves Data Breach Class Action
Nelnet agreed to a $10 million settlement to resolve class action litigation over the June 2022 data breach that exposed personal information of 2,501,324 student loan borrowers. The settlement fund provided two years of credit monitoring, up to $5,000 in documented out-of-pocket losses, and up to $100 for lost time dealing with the breach (four hours at $25/hour). The breach exposed names, addresses, emails, phone numbers, and Social Security numbers.