IDAPP FFELP Student Loan Servicing - Sole Source

The Illinois Student Assistance Commission (ISAC), through its Illinois Designated Account Purchase Program (IDAPP), awarded a sole source contract to Nelnet Servicing, LLC (doing business as Firstmark) for Federal Family Education Loan Program (FFELP) student loan servicing. The contract, valued at $170,000, covers a one-year performance period from September 15, 2026, through September 14, 2027, with no renewal options. The services encompassed under this award include billing and payment processing, account maintenance, deferment and forbearance processing, borrower account adjustments, borrower notifications, and financial reporting for approximately 7,090 FFELP loans.

The sole source procurement was justified based on economic feasibility considerations, specifically the substantial one-time transition costs estimated at approximately $164,663 that would be incurred if the loan portfolio were transferred to an alternative servicer. Nelnet currently maintains the existing infrastructure, borrower data, and operational knowledge necessary to service the portfolio without disruption, having already assumed management of the FFELP loans in April 2023 following EdFinancial Services LLC's ten-year service period. Funding for the contract derives from IDAPP Non-Appropriated Funds, and the pricing was negotiated by ISAC and determined to be volume-based and comparable to other student loan servicing contracts.