Nelnet and you can Higher Lakes are also working together for nearly 2 years to grow a unique, world-class upkeep program to possess regulators-had figuratively speaking thanks to a m&a. The fresh servicing program lower than innovation usually incorporate modern tools so you’re able to efficiently level for additional regularity, protect buyers advice, and you can service improved borrower experience attempts. Brand new efficiencies gathered because of the leverage just one system to own bodies-owned money supporting hundreds of thousands far more borrowers will give Great Lakes and you can Nelnet chances to invest in solutions to further increase debtor feel.
«Moving on toward growth of the condition-of-the-art financing repair system will enable us to deliver the finest possible feel to have individuals because the the groups already been better with her,» told you Joe Popevis, president from Nelnet Diversified Possibilities (NDS). NDS owns Nelnet Maintenance, Nelnet’s maintenance business, and also will individual High Lakes’ repair organization. «Which deal boosts our technical consolidation and you can collaboration, leaving all of us on the strongest condition you can to compliment the organization of your the system.»
Underneath the regards to brand new agreement, Nelnet pays $150.0 million in cash for all of the an excellent inventory out-of Great Ponds. The transaction commonly decide on , at the mercy of vintage closing conditions, mainly the new termination or cancellation of your own appropriate prepared symptoms not as much as brand new Hart-Scott-Rodino Antitrust Developments Operate of 1976.
Great Lakes will even continue steadily to bring tech and you can particular administrative service functions so you’re able to Great Lakes Advanced schooling Corporation pursuant so you can a beneficial guarantor functions agreement.
Nelnet’s expected acquisition of Higher Lakes sets a couple of ED’s four no. 1 education loan servicers; the others are Navient and FedLoan Servicing.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos announced her purpose 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 fresh new Captain Working Manager regarding FSA commented:
“This new FSA Education Illinois installment loans loan Program signifies the same as being the premier special-purpose consumer lender around the globe. To evolve customer care, we’re going to grab the top suggestions and you can opportunities available and put these to benefit People in america which have college loans. Whenever FSA customers changeover with the the new handling and you may upkeep ecosystem within the 2019, might discover a customer care program that’s because able to once the people on the personal market. The end result might be an improved feel for students – the people – and meaningful advantages with the American 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 to locate High Ponds Instructional Mortgage Functions
- The brand new iA Institute
Stephanie Eidelman
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).
«We are combining ninety several years of industry sense, and additionally bringing outstanding services in order to federal and personal education loan borrowers, loan providers, and colleges. With our shared info, we shall capture an approach who has ideal-in-classification technical solutions, demonstrated functional possibilities, and you may buyers feel designs, to help make an exceptional sense you to assures the individuals discover the finest repayment options for the personal factors. Great Ponds and you may Nelnet actually have the opportunity to change pupil financing repair to have millions of borrowers, bringing a normal and you can unmatched debtor experience and ideal tech to have student loan servicing.»
