Nelnet and you will Great Ponds are also working together for nearly two years growing another type of, first class upkeep system to possess regulators-had student loans thanks to a m&a. The brand new servicing system lower than creativity commonly need modern tools to effortlessly measure for further regularity, protect consumer recommendations, and you can assistance improved debtor experience effort. New efficiencies achieved by the leveraging one platform to have regulators-had funds help hundreds of thousands far more individuals will provide High Lakes and you can Nelnet opportunities to put money into ways to subsequent promote borrower event.
“Moving on on development of the county-of-the-ways mortgage repair platform tend to permit me to supply the greatest you’ll sense having borrowers as the communities already been closer with her,” told you Joe Popevis, president from Nelnet Diversified Solutions (NDS). NDS possess Nelnet Upkeep, Nelnet’s upkeep providers, and will also own Higher Lakes’ repair company. “Which exchange increases our technology combination and you may collaboration, leaving you regarding the most powerful reputation possible to enhance the growth of the program.”
Beneath the terms of the latest arrangement, Nelnet pays $150.0 billion into the dollars for everybody of one’s the inventory from Higher Ponds. Your order commonly settle on , at the mercy of regular closure standards, mainly the brand new termination otherwise termination of relevant prepared attacks less than the latest Hart-Scott-Rodino Antitrust Improvements Operate out-of 1976.
High Lakes will also always give tech and you can certain management service functions in order to High Lakes Degree Firm pursuant so you can a guarantor functions contract.
Nelnet’s asked purchase of High Lakes pairs a couple of ED’s four primary education loan servicers; the others try Navient and you will FedLoan Repair.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos revealed the woman intent 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 Master Doing work Administrator off FSA commented:
“The newest FSA Student loan Program represents roughly the same as being the biggest special-purpose individual financial worldwide. To switch customer service, we’re going to do the finest suggestions and you will prospective offered and place these to work for Us citizens with student loans. When FSA people changeover to your the processing and you can maintenance environment when you look at the 2019, they’re going to see a customer support system that is given that able to as any throughout the individual markets. The outcome might be a better sense for students – all of our users – and you will significant pros to 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 Great Lakes Informative Loan Properties
- This 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).
“The audience is joining together ninety several years of community feel, and providing a good provider to help you federal and private education loan consumers, loan providers, and colleges. With the help of our joint information, we will get a strategy installment loans Maryland with finest-in-class technology expertise, demonstrated functional possibilities, and you may consumer experience innovations, to manufacture an exceptional sense one assurances most of the consumers discover most readily useful payment options for its private affairs. High Lakes and you can Nelnet actually have the chance to changes pupil loan upkeep getting millions of consumers, bringing a regular and you can unrivaled debtor sense as well as the better technology getting student loan maintenance.”