Nelnet and High Ponds are also working together for almost 2 years to cultivate an alternate, world-class upkeep program to have government-had figuratively speaking using a m&a. New maintenance platform significantly less than innovation often need modern technology so you can effortlessly scale for further regularity, protect customer guidance, and you can help improved debtor feel initiatives. The latest efficiencies gained by leveraging just one program getting regulators-possessed fund supporting millions significantly more borrowers gives Great Lakes and you will Nelnet chances to buy methods to next promote debtor feel.
“Moving on with the development of the state-of-the-artwork financing upkeep platform commonly permit me to supply the greatest you’ll feel to possess borrowers once the our very own organizations become closer together,” told you Joe Popevis, president regarding Nelnet Varied Selection (NDS). NDS possess Nelnet Repair, Nelnet’s upkeep company, and also will individual Great Lakes’ maintenance business. “So it purchase boosts all of our technical integration and you can cooperation, leaving us in the most powerful reputation you can to compliment the growth of the fresh Indiana loan new program.”
According to the terms of new contract, Nelnet will pay $150.0 mil into the bucks for everybody of your outstanding stock regarding High Lakes. Your order often settle on , at the mercy of vintage closing standards, mostly the newest conclusion otherwise termination of relevant wishing symptoms less than the fresh new Hart-Scott-Rodino Antitrust Advancements Act out of 1976.
Great Ponds will additionally continue steadily to promote tech and you may particular administrative assistance characteristics so you’re able to Higher Lakes Higher education Firm pursuant so you can a guarantor characteristics agreement.
Nelnet’s requested purchase of Great Lakes sets a couple of ED’s four first education loan servicers; others was Navient and you will FedLoan Maintenance.
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 newest Chief Working Officer out of FSA commented:
“Brand new FSA Student loan System is short for roughly the same as as being the premier special purpose individual financial in the world. To evolve customer service, we are going to use the most readily useful records and opportunities available and place them to work for People in the us that have college loans. Whenever FSA people change on the the newest control and maintenance environment inside 2019, they will certainly look for a customer support program that’s just like the in a position to just like the one regarding private field. The end result is an improved sense for students – all of our people – and important advantages 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 acquire High Ponds Academic Financing Services
- 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).
“We are combining ninety years of business sense, along with bringing a good provider to government and personal education loan individuals, lenders, and you can universities. With your shared information, we’ll simply take a strategy containing ideal-in-category technology assistance, confirmed working potential, and you may customers sense designs, to produce an excellent experience you to assurances the borrowers find the finest repayment alternatives for the private affairs. Higher Ponds and you will Nelnet now have the ability to transform college student mortgage upkeep to possess many consumers, bringing an everyday and unmatched debtor sense and also the best technology having student loan repair.”
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