Nelnet and you may High Ponds have also collaborating for pretty much a couple of years to develop a unique, top notch servicing program for government-owned college loans because of a jv. This new servicing system lower than innovation have a tendency to make use of today’s technology so you can efficiently measure for additional frequency, cover consumer recommendations, and you may service improved borrower sense efforts. Brand new efficiencies achieved of the leverage just one platform to own bodies-had loans support many a great deal more consumers deliver Higher Lakes and you can Nelnet chances to spend money on techniques to next augment debtor experiences.
“Shifting into growth of our very own condition-of-the-artwork loan servicing program will enable me to deliver the top you’ll be able to sense to have individuals because our very payday loan online South Carolina own groups become better together,” told you Joe Popevis, chairman out of Nelnet Diversified Options (NDS). NDS is the owner of Nelnet Servicing, Nelnet’s servicing company, and will also very own Higher Lakes’ maintenance company. “This deal accelerates our technology integration and collaboration, making united states regarding the strongest reputation you’ll be able to to enhance the organization of the the newest system.”
Within the regards to this new arrangement, Nelnet will pay $150.0 mil within the bucks for all of your the inventory out-of Great Lakes. The transaction tend to choose , at the mercy of customary closure conditions, generally the termination otherwise cancellation of your own relevant wishing episodes around brand new Hart-Scott-Rodino Antitrust Advancements Work from 1976.
Higher Ponds will even always promote tech and specific administrative service characteristics so you can Higher Ponds Advanced schooling Business pursuant in order to good guarantor characteristics arrangement.
Nelnet’s expected acquisition of High Ponds pairs two of ED’s four primary education loan servicers; others are Navient and you will FedLoan Repair.
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 latest Master Functioning Administrator out-of FSA commented:
“The FSA Education loan Program is short for the equivalent of as being the premier special-purpose user bank global. Adjust support service, we’ll make the ideal details and you can possibilities offered and place them to work for People in america that have figuratively speaking. Whenever FSA users transition with the the latest processing and you will upkeep ecosystem in the 2019, they’re going to see a customer support system which is as capable just like the any regarding the individual market. The outcome could well be a much better feel for students – all of our consumers – and you may significant professionals 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 to locate Great Ponds Informative Mortgage Functions
- The latest 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 bringing together ninety years of business sense, and taking the service to help you government and private student loan consumers, lenders, and you will schools. With your combined resources, we’ll get a method which has better-in-classification technology solutions, shown functional prospective, and you can buyers feel innovations, to produce an excellent feel you to guarantees all the individuals discover the most readily useful installment alternatives for its private situations. High Lakes and you can Nelnet have the ability to changes college student financing servicing having countless borrowers, delivering a frequent and you may unmatched debtor experience and the better technology getting student loan maintenance.”