Nelnet and you may Great Lakes have also collaborating for pretty much 2 years to cultivate another, top notch repair program for regulators-owned student loans by way of a m&a. The new servicing platform less than advancement commonly need modern tools so you can effortlessly size for further frequency, manage customers information, and assistance improved borrower sense attempts. The efficiencies gained because of the leverage an individual system having government-had loans help hundreds of thousands even more borrowers offers Higher Ponds and you will Nelnet possibilities to purchase strategies to further augment debtor enjoy.
“Progressing towards development of our very own condition-of-the-ways mortgage servicing program will permit us to supply the better possible feel to own consumers just like the all of our teams become closer together,” told you Joe Popevis, chairman regarding Nelnet Varied Solutions (NDS). NDS has Nelnet Servicing, Nelnet’s maintenance organization, and will also very own Higher Lakes’ maintenance team. “This exchange increases the technology integration and you may venture, making us on most powerful position it is possible to to compliment the development of the platform.”
According to the terms of this new agreement, Nelnet will pay $150.0 million from inside the cash for all of one’s the inventory of High Lakes. Your order will settle on , subject to classic closing criteria, mostly new conclusion or termination of one’s relevant prepared attacks under the fresh new Hart-Scott-Rodino Antitrust Developments Utah payday loans online Act from 1976.
High Ponds might continue to give technical and you may particular administrative support features so you’re able to High Ponds Higher education Corporation pursuant to help you a great guarantor services contract.
Nelnet’s expected acquisition of Higher Ponds sets two of ED’s four number one education loan servicers; the remainder try Navient and you will FedLoan Maintenance.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos established the girl intent 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 Captain Functioning Manager of FSA commented:
“The newest FSA Education loan System stands for roughly the same as as being the prominent special-purpose user financial international. Adjust customer service, we’ll make finest info and you will possibilities readily available and place these to benefit Us americans with figuratively speaking. When FSA consumers transition with the the fresh control and repair environment inside 2019, might see a customer support system which is since the in a position to as one regarding the private field. The result could be a much better sense for students – all of our customers – and you may important experts to your 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 High Ponds Academic Mortgage Qualities
- The brand 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 joining together ninety numerous years of industry experience, along with providing a fantastic solution so you can government and personal education loan individuals, lenders, and you may schools. With the shared info, we’re going to simply take a strategy which includes best-in-category technical assistance, shown working prospective, and you will customer feel designs, to create a superior experience one to assurances most of the consumers discover top repayment options for its personal situations. High Lakes and Nelnet have the ability to change college student mortgage repair having countless individuals, bringing a typical and you can unrivaled borrower feel while the most readily useful tech to possess education loan maintenance.”