Nelnet and Great Lakes are also working together for nearly couple of years to develop another type of, top notch repair program getting government-owned student loans courtesy a partnership. Brand new upkeep program not as much as development commonly use today’s technology so you can efficiently scale for further frequency, cover customer pointers, and you may service enhanced borrower sense initiatives. The fresh efficiencies attained by leverage an individual program to have bodies-owned money support many significantly more individuals will offer High Lakes and Nelnet possibilities to purchase ways to subsequent increase borrower enjoy.
“Progressing on the development of all of our state-of-the-artwork mortgage repair system often enable me to supply the most readily useful you’ll experience for borrowers because our organizations become better together with her,” told you Joe Popevis, chairman out-of Nelnet Varied Solutions (NDS). NDS owns Nelnet Maintenance, Nelnet’s repair organization, and will also own High Lakes’ maintenance company. “That it transaction boosts the tech integration and you may collaboration, leaving you about strongest status you’ll be able to to enhance the organization of one’s the program.”
Within the terms of the latest arrangement, Nelnet will pay $150.0 mil in bucks for everybody of the the inventory away from Higher Lakes. The order often decide on , at the mercy of standard closure standards, mainly the fresh expiration otherwise termination of appropriate wishing symptoms significantly less than the latest Hart-Scott-Rodino Antitrust Improvements Work out-of 1976.
Higher Ponds will additionally consistently offer technical and you will certain management support characteristics to help you High Lakes Degree Firm pursuant to help you a guarantor services contract.
Nelnet’s asked purchase of Higher Lakes sets a couple of ED’s five no. 1 education loan servicers; others was 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 purpose to transform how the Federal Student Aid Fund (FSA) provides customer service to more than 42 million student loan borrowers, calling it “Next https://paydayloansonlinedirect.com/installment-loans-mn/ Generation Processing and Servicing.” As part of ED’s August announcement, Dr. A. Wayne Johnson, the latest Captain Performing Manager of FSA commented:
“The fresh new FSA Education loan Program is short for the equivalent of being the biggest special-purpose user lender worldwide. To improve customer care, we shall use the greatest records and you may capabilities available and place these to benefit Americans having figuratively speaking. Whenever FSA people transition towards the the newest handling and you may repair environment inside 2019, they are going to look for a support program which is while the capable because people on the personal market. The result might possibly be a significantly better experience for students – all of our users – and you may meaningful gurus on 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 track down Great Ponds Educational Loan Services
- 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’re bringing together ninety several years of world sense, including bringing a great service to federal and private education loan consumers, loan providers, and colleges. With the help of our shared info, we’ll bring a strategy that features ideal-in-category technology options, demonstrated functional prospective, and you may customer sense innovations, to create an excellent sense one to assures the individuals get the top installment choices for the individual issues. Higher Ponds and you will Nelnet now have the ability to change student mortgage repair to possess an incredible number of individuals, providing a consistent and you may unmatched debtor experience in addition to greatest technical to own education loan repair.”
