Nelnet and you will Higher Lakes have also been collaborating for nearly two years to develop a separate, first class repair system for government-possessed figuratively speaking by way of a m&a. The brand new repair system lower than invention usually incorporate modern technology to help you effortlessly size for additional volume, include consumer guidance, and you will service improved debtor sense efforts. Brand new efficiencies attained by leveraging just one program to have regulators-possessed finance help many so much more consumers offers High Lakes and you may Nelnet possibilities to invest in strategies to subsequent improve borrower enjoy.
“Moving forward towards the growth of our state-of-the-art financing servicing platform usually permit us to deliver the top you can feel getting individuals as our very own groups started nearer together with her,” told you Joe Popevis, chairman off Nelnet Diversified Choice (NDS). NDS owns Nelnet Upkeep, Nelnet’s maintenance organization, and also will very own Higher Lakes’ maintenance organization. “This purchase boosts our very own technology consolidation and you may cooperation, leaving you from the strongest status it is possible to to enhance the development of one’s brand new platform.”
Within the regards to the fresh arrangement, Nelnet will pay $150.0 million from inside the cash for everyone of your an excellent stock of High Lakes. The transaction will settle instant same day payday loans online Oklahoma on , subject to typical closing conditions, generally new conclusion or termination of your applicable waiting attacks below the fresh Hart-Scott-Rodino Antitrust Advancements Work off 1976.
Higher Lakes will even continue steadily to give tech and you will specific management assistance qualities so you’re able to Great Lakes Degree Agency pursuant so you can a good guarantor qualities contract.
Nelnet’s expected acquisition of Great Lakes pairs a couple of ED’s four no. 1 education loan servicers; the others is Navient and you can FedLoan Upkeep.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos revealed 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 Master Performing Administrator away from FSA commented:
“This new FSA Education loan System is short for roughly the same as as being the prominent special purpose consumer lender international. To switch support service, we’re going to grab the better records and you may prospective readily available and place these to work for Us citizens with student education loans. When FSA customers transition on the running and you will repair ecosystem in 2019, they discover a customer care system which is as able to since the people regarding the private sector. The effect could be a much better experience for college students – the customers – and important experts 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 find Great Lakes Academic Mortgage Features
- The 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 combining 90 numerous years of community experience, and additionally providing the provider in order to government and personal education loan consumers, lenders, and you will schools. With this combined resources, we are going to capture a method that has had top-in-group technical solutions, demonstrated operational opportunities, and customer feel innovations, to help make a superior sense you to definitely assures all borrowers get the best payment choices for the individual factors. Great Lakes and you will Nelnet have the opportunity to changes student mortgage upkeep getting scores of consumers, providing a normal and you will unrivaled debtor sense plus the best technology for education loan maintenance.”