A former Nelnet employee is appealing to reinstate his lawsuit accusing the student loan company of improperly collecting federal subsidies after violating federal lending rules.

The lawsuit filed by former Nelnet loan adviser Rudy Vigil was dismissed by a federal judge last month. Vigil has filed notice that he will appeal the dismissal.

The lawsuit was originally filed in 2007 on behalf of the U.S. government under whistle-blower laws. It accused Lincoln-based Nelnet of misleading borrowers about the benefits of consolidating student loans and applying for federal interest-rate subsidies on behalf of itself and on behalf of Citigroup and JPMorgan Chase.

Nelnet officials have called Vigil's lawsuit frivolous and praised its dismissal.