Nelnet and you can Higher Lakes have also been collaborating for nearly 2 years to cultivate an alternate, world-class upkeep program having government-had figuratively speaking due to a partnership. This new upkeep program not as much as creativity usually make use of today’s technology in order to effortlessly measure for additional regularity, manage customers suggestions, and you can help improved debtor experience attempts. This new efficiencies gathered by leveraging a single platform getting government-owned loans supporting many so much more individuals will offer Higher Ponds and Nelnet chances to buy techniques to next increase borrower feel.
“Moving forward to your growth of the state-of-the-artwork mortgage servicing system tend to permit us to provide the finest you’ll be able to experience to possess individuals because our communities come better with her,” told you Joe Popevis, chairman of Nelnet Varied Selection (NDS). NDS possesses Nelnet Upkeep, Nelnet’s maintenance organization, and will also own Great Lakes’ upkeep providers. “That it deal accelerates our very own technology integration and you will venture, leaving united states from the strongest condition you are able to to enhance the development of one’s this new program.”
Under the regards to the brand new contract, Nelnet pays $150.0 million in the dollars for all of one’s an excellent stock off Great Lakes. The transaction will settle on , at the mercy of vintage closure standards, mostly the expiration otherwise termination of the applicable wishing attacks around new Hart-Scott-Rodino Antitrust Developments Work out of 1976.
Great Ponds will continue steadily to promote tech and you may particular management help qualities so you can High Ponds Degree Agency pursuant to help you good guarantor services arrangement.
Nelnet’s questioned purchase of Great Ponds pairs a couple of ED’s five number 1 student loan servicers; the remainder is actually Navient and you will FedLoan Repair.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos launched this lady purpose to transform how the Federal Utah online payday loans 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 Captain Working Administrator out of FSA commented:
“The brand new FSA Education loan Program signifies roughly the same as as the prominent special-purpose consumer lender worldwide. Adjust customer service, we’re going to make the most readily useful ideas and you may prospective readily available and put them to work with Us americans which have figuratively speaking. Whenever FSA customers change to the the fresh new handling and you will repair ecosystem inside 2019, they will certainly select a customer care system that is given that capable as the one regarding personal sector. The result is a better feel for college students – our customers – and significant masters towards 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 locate Great Lakes Informative Financing Services
- 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).
“Our company is combining 90 years of industry experience, as well as getting a good provider to help you government and private student loan individuals, loan providers, and universities. With this mutual info, we are going to get a method that contains finest-in-class technical possibilities, demonstrated functional potential, and buyers experience innovations, which will make an excellent experience that assures most of the borrowers get the best cost alternatives for their private issues. High Lakes and you may Nelnet actually have the chance to change beginner mortgage maintenance for millions of individuals, taking a routine and you can unmatched debtor sense additionally the ideal technology to own student loan repair.”