JPMorgan Chase & Co, which has one of the largest U.S. student lending operations, said on Friday it will hire up to 150 Indianapolis-based workers from Nelnet Inc to expand its loan-origination operations.

Nelnet, a student loan company, announced plans Thursday to cut 400 jobs, or 12 percent of its work force, ahead of expected federal legislation to slash government subsidies to lenders.

Chase Education Finance said it has signed a letter of intent to offer jobs to affected Nelnet workers in Indianapolis, and will also sublease Nelnet offices in the city. It expects to add the employees by late this year.

The unit of JPMorgan Chase, the No. 3 U.S. bank, manages more than $12 billion of student loans.

(Reporting by Jonathan Stempel)