Nelnet and you will High Ponds have also been collaborating for pretty much couple of years to grow an alternative, world-class repair program for regulators-possessed student education loans thanks to a partnership. New upkeep system below innovation usually need modern technology so you’re able to effortlessly scale for further frequency, manage customer information, and you may service improved debtor feel attempts. New efficiencies attained because of the leverage just one system to own authorities-had fund supporting millions significantly more individuals will offer Great Ponds and you may Nelnet opportunities to put money into methods to after that boost borrower experiences.
« Progressing for the development of our state-of-the-art loan repair platform will permit me to provide the ideal you can experience having consumers just like the the groups been nearer with her, » said Joe Popevis, chairman of Nelnet Varied Choices (NDS). NDS possess Nelnet Maintenance, Nelnet’s upkeep company, and will also own Great Lakes’ servicing company. « So it exchange increases our very own technology combination and you will cooperation, making us from the most powerful position you’ll be able to to compliment the organization of the the fresh program. »
Within the terms of the newest contract, Nelnet will pay $150.0 million for the cash for everybody of your an excellent stock from Higher Ponds. The transaction will settle on , subject to standard closing standards, mainly the fresh termination or termination of one’s appropriate waiting attacks below the new Hart-Scott-Rodino Antitrust Developments Work out-of 1976.
High Lakes might continue steadily to give technology and particular administrative service features to help you Higher Lakes Advanced schooling Organization pursuant to help you a good guarantor qualities contract.
Nelnet’s asked acquisition of High Ponds pairs two of ED’s five number 1 education loan servicers; others was Navient and FedLoan Repair.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos established this lady purpose 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 latest Captain Doing work Officer regarding FSA commented:
“New FSA Student loan Program stands for the same as being the biggest special-purpose individual bank worldwide. To switch customer support, we’re going to use the most readily useful information and opportunities readily available and place these to work with Us americans installment loans online North Dakota that have student education loans. Whenever FSA people changeover to the the fresh handling and maintenance ecosystem into the 2019, they will certainly come across a customer service program which is because able to as people from the private industry. The end result could well be an improved experience for students – our consumers – and you can important positives towards the 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 to track down Higher Lakes Academic Financing Services
- This new iA Institute
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 are combining ninety years of industry sense, along with taking a great services in order to federal and private student loan individuals, lenders, and schools. With the help of our shared resources, we shall bring an approach which includes finest-in-classification technical systems, proven functional opportunities, and you may customers sense designs, in order to make an excellent sense one to guarantees all of the borrowers discover most readily useful installment options for the personal items. High Lakes and Nelnet now have the ability to change pupil mortgage servicing for countless consumers, getting a routine and unrivaled debtor feel while the better technology to own education loan repair. »