This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos announced the woman 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 Chief Doing work Officer out-of FSA commented:
“The FSA Student loan Program stands for roughly the same as as being the prominent special purpose individual lender globally. Adjust support service, we are going to do the top information and you will potential readily available and put them to work for Us americans with figuratively speaking. When FSA users transition toward this new running and you can maintenance environment in the 2019, they will come across a customer support system that is given that able to because the one on private field. The outcome will be a far better experience for students – all of our people – and you will meaningful pros to your 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.
- 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 have been bringing together 90 years of globe experience, and additionally delivering the provider in order to federal and private student loan consumers, lenders, and you can schools. With the help of our mutual tips, we’ll take a method that has most readily useful-in-classification tech possibilities, shown operational potential, and you can consumer feel innovations, to manufacture a superior feel you to guarantees all the borrowers discover the greatest installment choices for its individual activities. High $255 payday loans online same day Kentucky Lakes and you will Nelnet have the chance to change pupil mortgage maintenance to possess millions of consumers, bringing a frequent and you may unrivaled borrower sense as well as the most readily useful technical getting education loan servicing.”
Based for the Madison, Wisconsin, High Ponds as well as father or mother connected category was indeed providing children accessibility degree given that 1967. Today, High Lakes have step 1,800 teams. High Ponds Ceo Jeff Crosby told you,
„Today is a great day to own High Lakes and you will the employees, and people we do have the possible opportunity to serve. High Lakes and Nelnet was in fact management during the student loan maintenance for a long time because of the emphasizing operational brilliance and by assuming we can still perform a great deal more so you’re able to serve our very own users. Our very own beliefs and you will groups fit both and i am confident i will be able to do even more to improve this new lives of your borrowers, loan providers, and you can universities we serve as part of a similar class.”
Nelnet to locate Higher Lakes Academic Loan Services
During 2009, High Lakes and you will Nelnet was in fact approved contracts to provider government-had college loans on behalf of the U.S. Institution out of Studies. These types of contracts are set in order to end when you look at the .
Depending on the business announcement, Great Ponds and Nelnet will keep the collection of brands, repair surgery, and you can functional groups, which have Jeff Crosby leading High Lakes as the Ceo, and each continues to compete for new education loan regularity less than its respective current deal to your Company from Knowledge. Over time, mutual characteristics communities have a tendency to integrate and you can assistance both Great Ponds and you may Nelnet servicing operations.
Nelnet and you can Higher Lakes have also been working together for pretty much 24 months growing a new, world class repair program to own bodies-owned student loans by way of a m&a. The brand new upkeep system not as much as advancement have a tendency to use today’s technology so you can efficiently size for additional volume, manage consumer pointers, and service enhanced borrower sense initiatives. New efficiencies attained by the leveraging one system for authorities-had fund help many way more borrowers can give Higher Ponds and you may Nelnet opportunities to invest in strategies to after that promote debtor feel.