Nelnet and you will High Ponds have also been working together for nearly two years to grow a different sort of, top notch servicing system to possess authorities-owned college loans courtesy a m&a. New servicing platform less than advancement often incorporate today’s technology so you’re able to effectively measure for further frequency, manage consumer advice, and you will service enhanced debtor feel effort. The latest efficiencies gathered of the leveraging just one platform having government-possessed funds help hundreds of thousands far more borrowers will provide Higher Lakes and you may Nelnet possibilities to invest in solutions to then enhance borrower enjoy.
“Moving on on the growth of all of our state-of-the-ways loan servicing system usually enable me to provide the finest you’ll be able to sense to own individuals since our communities started better together with her,” told you Joe Popevis, chairman from Nelnet Diversified Selection (NDS). NDS is the owner of Nelnet Servicing, Nelnet’s upkeep organization, and also will individual High Lakes’ repair team. “So it exchange boosts all of our tech combination and collaboration, making us in the most powerful updates you can easily to compliment the growth of your own the fresh new platform.”
Underneath the terms of this new contract, Nelnet pays $150.0 mil for the dollars for everyone of the the inventory away from Higher Ponds. The order commonly decide on , subject to standard closure requirements, generally the expiration otherwise termination of the applicable wishing episodes less than the fresh Hart-Scott-Rodino Antitrust Improvements Act away from 1976.
Great Lakes may also always provide technical and you may particular administrative help properties so you’re able to High Ponds Advanced schooling Agency pursuant to help you a good guarantor functions contract.
Nelnet’s requested acquisition of Great Lakes pairs two of ED’s five no. 1 student loan servicers; the others is actually Navient and you may FedLoan Repair.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos launched the girl intention to transform how the Federal Student Aid Fund (FSA) provides customer service to more than 42 million student loan borrowers, calling it “Next Generation Processing and Servicing.” As part of ED’s August announcement, Dr. A. Wayne Johnson, the new Head Functioning Officer out-of FSA commented:
“The newest FSA Education loan Program signifies roughly the same as as being the prominent special-purpose user lender international. To switch customer support, we shall take the better information and you can possibilities available and place them to work for Americans which have figuratively speaking. Whenever FSA users changeover on this new running and you will upkeep ecosystem in the 2019, they’ll see a support program that is as the able to because the one about private field. The end result is a better experience for students – all of our consumers – and you can significant advantages into Western taxpayer.”
A single-platform for servicing ED’s portfolio, estimated $1.4 trillion, certainly makes sense for borrowers with multiple loans, who may currently deal with multiple servicers on different databases. It seems that the ongoing project to develop a servicing platform was a bet by Nelnet and Great Lakes that their system (known as “GreatNet“) would be just what ED would be looking for. Perhaps the closer ties between the companies were to be expected.
Nelnet discover Higher Lakes Informative Financing Properties
- The new iA Institute
Nelnet (NYSE: NNI) announced yesterday that it has entered into a definitive and binding agreement with Great Lakes Higher Education Corporation to acquire 100% of the stock of their student loan servicing company, Great Lakes Educational Loan Services, Inc. (Great Lakes).
“Our company is combining ninety years of community sense, plus taking a good service so you can federal and personal education loan borrowers, loan providers, and you will universities. With this joint resources, we are going to bring a strategy which has had most useful-in-class technical solutions, shown working prospective, and you can buyers feel designs, to produce an excellent experience that assures every individuals select the finest installment options for their personal affairs. Great Ponds and you may Nelnet actually have the opportunity https://directlenderloans.org/title-loans-ne/ to alter pupil mortgage repair getting countless borrowers, delivering a typical and you will unrivaled debtor experience therefore the greatest technical getting student loan repair.”