Nelnet and you can Higher Ponds are also collaborating for pretty much a couple of years to cultivate a unique, world class repair program for regulators-had figuratively speaking thanks to a joint venture. Brand new maintenance program around advancement usually make title loans Oregon use of modern tools in order to effectively size for further frequency, manage customer advice, and assistance enhanced borrower feel initiatives. The brand new efficiencies attained by the leverage an individual system for authorities-possessed fund help millions even more individuals offers High Ponds and you can Nelnet opportunities to purchase strategies to further boost borrower skills.
“Progressing with the growth of all of our county-of-the-ways loan servicing program will enable us to deliver the most readily useful you’ll experience to own consumers since the all of our groups become closer with her,” said Joe Popevis, chairman off Nelnet Varied Selection (NDS). NDS possess Nelnet Repair, Nelnet’s repair team, and also will very own High Lakes’ servicing organization. “This deal boosts our technology consolidation and cooperation, leaving united states regarding strongest position you are able to to enhance the organization of the the new platform.”
Under the terms of brand new agreement, Nelnet pays $150.0 mil when you look at the dollars for everybody of a great inventory away from Higher Lakes. The transaction tend to choose , subject to customary closure requirements, mainly the fresh new termination or cancellation of one’s applicable wishing episodes under the brand new Hart-Scott-Rodino Antitrust Developments Operate away from 1976.
Great Lakes will still promote technical and you will particular administrative help functions so you can High Ponds Degree Enterprise pursuant to help you a guarantor features contract.
Nelnet’s expected acquisition of Great Ponds sets a couple of ED’s four no. 1 education loan servicers; the others are Navient and you can FedLoan Upkeep.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos established this lady 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 fresh new Chief Operating Officer out-of FSA commented:
“New FSA Student loan Program stands for the equivalent of as being the prominent special-purpose user financial all over the world. To change customer support, we are going to use the finest facts and you may prospective readily available and place these to work with Us americans having student education loans. When FSA customers changeover into the this new operating and you will upkeep ecosystem during the 2019, they will certainly select a customer care program that’s because the in a position to just like the people in the individual business. The end result was a far better feel for students – our very own people – and you can 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 locate Great Ponds Instructional Loan Attributes
- 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 have been combining ninety numerous years of community feel, including providing an excellent service in order to government and private education loan borrowers, lenders, and you may schools. With your combined information, we will take an approach with which has most readily useful-in-classification technology options, proven working capabilities, and you will customer sense designs, to produce an exceptional experience you to assures every borrowers find the top payment options for the individual points. Higher Lakes and Nelnet now have the opportunity to alter scholar financing servicing to own an incredible number of individuals, delivering a regular and you can unmatched debtor experience and also the finest tech having student loan repair.”