IDAPP FFELP Student Loan Servicing - Sole Source

The Illinois Student Assistance Commission (ISAC) is seeking to award a sole-source contract to Nelnet Servicing LLC for IDAPP FFELP student loan servicing, with a public hearing scheduled for August 28, 2026 at 2:00 p.m. via WebEx and written comments due by 4:00 p.m. that same day; the contract completion date is September 2, 2026.

This is a sole-source procurement justified on economic infeasibility of portfolio transition. The FFELP loan portfolio (approximately 7,090 loans) was assigned to Nelnet from the prior servicer, EdFinancial Services LLC, in April 2023. ISAC estimates one-time deconversion and conversion costs totaling approximately $164,663—nearly equivalent to the annual contract value—if the portfolio were transferred to a new servicer. Nelnet currently services ISAC's IDAPP private loan portfolio and possesses existing infrastructure, established borrower data, and operational knowledge that would minimize disruption and security risks.

The scope covers billing and payment processing, account maintenance, deferment and entitlement processing, borrower account adjustments, borrower notifications, and financial reporting for FFELP loans. The estimated contract value is $170,000 for a one-year term running September 15, 2026 through September 14, 2027, with no renewal options. Funding is provided through IDAPP Non-Appropriated Funds rather than state appropriated or federal funds.

The public hearing will allow ISAC to present justification for the sole-source method; interested parties may present testimony for or against the award. Written comments and oral testimony carry equal weight. The Chief Procurement Officer retains authority to approve or deny ISAC's request to proceed with sole-source procurement. Interested parties may submit written comments or request a public hearing by August 28, 2026 to Dianne Richman, Chief Procurement Office for General Services (Dianne.Richman@illinois.gov, 217-622-1857).