Nelnet and you may Great Ponds are also working together for almost 2 years to develop a special, first class servicing system to have bodies-had student education loans compliment of a jv. The upkeep system below invention usually use modern technology so you’re able to effectively measure for further regularity, manage customers guidance, and you will help improved borrower feel initiatives. Brand new efficiencies achieved from the leverage an individual platform to possess bodies-had funds supporting many much more borrowers deliver High Ponds and you will Nelnet chances to spend money on methods to subsequent boost borrower experience.
« Shifting into development of all of our county-of-the-artwork mortgage repair program have a tendency to enable me to provide the most useful possible sense to have borrowers due to the fact our very own organizations come nearer together with her, » told you Joe Popevis, chairman regarding Nelnet Diversified Alternatives (NDS). NDS owns Nelnet Upkeep, Nelnet’s servicing business, and also will individual High Lakes’ upkeep business. « So it deal speeds up all of our technical integration and you can collaboration, making all of us about strongest status you’ll be able to to compliment the development of your own the new platform. »
Within the terms of brand new arrangement, Nelnet pays $150.0 mil inside bucks for everyone of your own outstanding stock off High Ponds. Your order often choose , at the mercy of regular closing criteria, primarily brand new expiration or termination of your applicable wishing periods less than this new Hart-Scott-Rodino Antitrust Developments Act out of 1976.
Higher Ponds also always give technical and specific administrative help functions in order to High Ponds Higher education Firm pursuant in order to good guarantor characteristics arrangement.
Nelnet’s expected purchase of Higher Ponds pairs two of ED’s four top education loan servicers; others try Navient and you may FedLoan Maintenance.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos established their 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 new Master Ohio loans Doing work Administrator from FSA commented:
“Brand new FSA Education loan Program stands for roughly the same as being the prominent special purpose consumer bank around the globe. To switch customer care, we will use the greatest information and you can capabilities readily available and put these to work for Americans with figuratively speaking. When FSA consumers changeover into the the fresh new running and you will maintenance environment within the 2019, they will certainly pick a support system that’s since able to since any on the individual field. The outcome will be a far better feel for college students – the customers – and you will significant positives with 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 obtain High Lakes Educational Financing Qualities
- The newest 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 have been bringing together 90 numerous years of community experience, together with delivering the services in order to government and private student loan individuals, loan providers, and you may schools. With this combined resources, we’ll get a strategy which has most readily useful-in-category technology solutions, proven operational capabilities, and you may buyers feel innovations, in order to make an excellent experience one to guarantees every borrowers find the most useful payment options for its private products. Great Ponds and you may Nelnet currently have the chance to change college student mortgage repair to own scores of individuals, delivering a frequent and you can unmatched debtor experience and the better tech getting student loan servicing. »
