Nelnet and you may High Lakes are also working together for pretty much two years growing a special, world-class maintenance program to have government-owned college loans through a m&a. The fresh maintenance program not as much as innovation commonly incorporate modern tools so you can effectively measure for additional frequency, cover customer guidance, and you may service enhanced borrower sense attempts. Brand new efficiencies gathered by the leveraging a single system to own authorities-had finance help millions alot more individuals will provide Great Lakes and you will Nelnet opportunities to put money into techniques to after that improve debtor enjoy.
“Moving on to the development of all of our condition-of-the-art mortgage maintenance system tend to permit me to supply the top you can easily feel getting individuals while the our groups already been nearer along with her,” said Joe Popevis, chairman away from Nelnet Varied Selection (NDS). NDS possesses Nelnet Repair, Nelnet’s upkeep organization, and also will individual Great Lakes’ servicing organization. “It exchange increases our technology combination and you may cooperation, leaving all of us regarding strongest standing possible to compliment the growth of the the program.”
Under the terms of the latest contract, Nelnet will pay $150.0 million in the cash for everybody of your a fantastic inventory regarding Higher Lakes. Your order often choose , subject to regular closing criteria, mainly new conclusion or cancellation of your applicable wishing periods lower than brand new Hart-Scott-Rodino Antitrust Advancements Operate away from 1976.
Great Lakes also consistently promote technology and you can particular management service qualities to Higher Lakes Higher education Enterprise pursuant to a guarantor attributes contract.
Nelnet’s expected acquisition of Great Lakes pairs a couple of ED’s five no. 1 student loan servicers; the rest was Navient and you will FedLoan Servicing.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos announced this lady intention 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 Operating Officer out of FSA commented:
“This new FSA Student loan Program means roughly the same as being the premier special purpose user financial globally. To evolve customer care, we’ll do the finest facts and you may opportunities offered and put them to work with Us americans which have student education loans. When FSA people transition toward brand new operating and servicing ecosystem from inside the 2019, might look for a customer support system that is due to the fact able to since the any regarding personal payday loans Pennsylvania field. The outcome could be an improved experience for college students – the customers – and you can significant pros on 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 locate High Lakes Informative Financing Characteristics
- Brand 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).
“The audience is bringing together 90 many years of industry experience, including providing a good services to federal and private student loan individuals, loan providers, and you may colleges. With your shared information, we shall bring an approach which has had ideal-in-classification technology systems, confirmed working prospective, and customers feel designs, to manufacture a superior sense you to assurances the borrowers select the greatest fees choices for its individual facts. Great Lakes and you may Nelnet currently have the chance to changes beginner financing upkeep for many individuals, delivering a normal and you may unrivaled debtor feel as well as the best technology to possess student loan repair.”