Nelnet and you will Great Lakes have also been working together for almost a couple of years to develop an alternative, top notch repair program to possess bodies-owned figuratively speaking courtesy a joint venture. The maintenance program lower than development commonly need modern tools to effectively scale for further regularity, cover customers recommendations, and help improved borrower experience attempts. The new efficiencies gathered of the leveraging a single program to have government-owned loans help many a whole lot more individuals will give High Lakes and you may Nelnet possibilities to put money into strategies to further promote borrower experience.
«Progressing into the development of our county-of-the-ways mortgage upkeep platform often permit me to deliver the ideal you are able to experience to have borrowers because the all of our teams become nearer along with her,» told you Joe Popevis, chairman of Nelnet Varied Alternatives (NDS). NDS has Nelnet Maintenance, Nelnet’s maintenance providers, and will also individual High Lakes’ repair business. «Which transaction speeds up the technical combination and you can collaboration, leaving you in the most powerful standing possible to compliment the growth of the the system.»
Under the regards to this new agreement, Nelnet will pay $150.0 million for the bucks for everyone of one’s a great inventory out of High Ponds. Your order will decide on , subject to traditional closing standards, primarily the termination otherwise cancellation of applicable prepared symptoms around brand new Hart-Scott-Rodino Antitrust Advancements Act off 1976.
Great Ponds will even still promote technical and certain administrative help functions so you can High Lakes Advanced schooling Enterprise pursuant to an effective guarantor qualities arrangement.
Nelnet’s asked acquisition of Great Lakes sets a couple of ED’s four first education loan servicers; the remainder are Navient and you may FedLoan Servicing.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos announced the woman 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 Doing work Administrator off FSA commented:
“The latest FSA Education loan System means the equivalent of being the premier special purpose individual lender international. To switch support service, we are going to take the best records and you will prospective readily available and place them to benefit Us citizens with student loans. Whenever FSA customers change into the the fresh new control and you may servicing environment in the 2019, they look for a customer service program that’s as the capable once the any about personal field. The end result might be an improved experience for college students – all of our customers – and you will important experts on 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 https://paydayloansonlinedirect.com/installment-loans-pa/ 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 Informative Financing Qualities
- 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, Great Lakes Educational Loan Services, Inc. (Great Lakes).
«The audience is joining together 90 many years of business experience, plus taking a good service so you’re able to federal and private student loan borrowers, lenders, and you may universities. With the help of our combined info, we shall take an approach that has had best-in-group technical options, confirmed functional opportunities, and you may buyers feel designs, to produce a superior experience you to ensures every consumers get the better fees options for the private factors. High Ponds and you can Nelnet currently have the ability to changes beginner financing upkeep getting scores of borrowers, getting a normal and you may unrivaled borrower sense together with ideal tech to possess student loan servicing.»
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