Nelnet and you can Great Lakes have also collaborating for nearly 2 yrs to grow a unique, first class upkeep program for bodies-had student education loans thanks to a joint venture. The fresh new repair program not as much as invention commonly incorporate modern technology in order to effectively scale for additional frequency, manage buyers suggestions, and you can help enhanced debtor sense effort. The efficiencies achieved because of the leveraging one system to have authorities-owned funds supporting millions way more individuals deliver Higher Ponds and you will Nelnet chances to purchase techniques to after that enhance debtor experience.
“Shifting toward development of all of our state-of-the-artwork loan repair program usually allow me to supply the finest possible feel to own consumers since our organizations already been better together with her,” said Joe Popevis, chairman of Nelnet Varied Alternatives (NDS). NDS owns Nelnet Maintenance, Nelnet’s maintenance organization, and will also own High Lakes’ maintenance business. “That it transaction increases all of our tech integration and you can collaboration, making you about most powerful position you are able to to compliment the growth of your own the latest system.”
Beneath the regards to the latest agreement, Nelnet pays $150.0 mil inside bucks for everybody of your own the inventory out-of Great Lakes. The order usually choose , susceptible to conventional closure requirements, mostly brand new termination or cancellation of appropriate prepared episodes under the Hart-Scott-Rodino Antitrust Developments Operate away from 1976.
Higher Ponds also continue to bring tech and you may particular management support properties to help you Great Ponds Degree Firm pursuant to a guarantor attributes agreement.
Nelnet’s questioned acquisition of Great Lakes pairs two of ED’s five no. 1 education loan servicers; the remainder is Navient and FedLoan Servicing.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos established this lady 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 brand new Head Doing work Administrator off FSA commented:
“The newest FSA Student loan Program stands for roughly the same as as being the premier special-purpose consumer bank around the world. To improve customer care, we will take the better facts and you may possibilities readily available and place these to work with Us americans that have student education loans. Whenever FSA users transition into the new processing and you will repair ecosystem during the 2019, they’ll come across a support system that is once the able to while the any from the personal markets. The effect was a significantly better sense for college students – the users – and you will significant positives towards the 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 to find Great Ponds Educational Mortgage Services
- The 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, payday loans WA Great Lakes Educational Loan Services, Inc. (Great Lakes).
“We’re joining together ninety years of world feel, as well as getting the provider so you can federal and private student loan borrowers, loan providers, and you may universities. With these joint info, we’ll need a method that features greatest-in-class tech expertise, proven working capabilities, and you will customer sense innovations, to make an excellent experience that assurances all the borrowers select the finest cost options for its personal issues. High Lakes and you may Nelnet currently have the ability to change pupil financing repair getting an incredible number of individuals, delivering a typical and you may unmatched borrower experience plus the best technical for student loan servicing.”