“Now is a fantastic day to own Great Lakes and you will all of our employees, together with consumers we do have the chance to serve. Great Lakes and you may Nelnet was in fact frontrunners during the student loan servicing for decades by targeting functional excellence and also by trusting we can still carry out a whole lot more so you can serve all of our users. The values and you may communities fit one another and i am confident we are capable of way more to improve the fresh new life of individuals, loan providers, and you may schools we act as a part of an identical cluster.”
Nelnet and you may Great Lakes have also been working together for almost a couple of years growing a new, world class repair system for regulators-had student loans courtesy a partnership
According to the team statement, High Lakes and you will Nelnet will keep the collection of names, maintenance operations, and you may operational communities, with Jeff Crosby best Great Lakes as its President, and every will continue to participate for new student loan volume under their respective existing offer on Service of Degree. Over the years, mutual functions communities usually put and you will support both High Lakes and you can Nelnet upkeep functions.
The brand new upkeep system not as much as development often utilize modern tools so you can efficiently size for additional frequency, include consumer recommendations, and you can help enhanced borrower experience efforts. New efficiencies gathered of the leverage a single program for authorities-possessed money help millions far more individuals will offer High Ponds and you can Nelnet opportunities to purchase methods to subsequent increase debtor experiences.
“Shifting towards the development of our very own state-of-the-artwork loan maintenance platform commonly allow us to provide the best possible sense getting borrowers because the our very own groups become nearer together with her,” told you Joe Popevis, president of Nelnet Diversified Choices (NDS). NDS possesses Nelnet Upkeep, Nelnet’s maintenance company, and will also own Higher Lakes’ repair business. “This exchange boosts our tech combination and collaboration, leaving us in the most effective condition you can to compliment the organization of the the fresh program.”
Within the regards to new agreement, Nelnet pays $150.0 mil in the bucks for everybody of your own a fantastic inventory of High Ponds. The order tend to settle on , at the mercy of standard closure requirements, generally the brand new termination otherwise termination of your own relevant waiting episodes not as much as the new Hart-Scott-Rodino Antitrust Improvements Operate of 1976.
High Ponds will always give technical and you may particular management help attributes so you can Great Ponds Degree Enterprise pursuant in order to a beneficial guarantor features agreement.
Nelnet’s asked acquisition of Higher Lakes sets two of ED’s four first education loan servicers; others are Navient and you may FedLoan Repair.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos announced their intent 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, new Head Doing work Officer out-of FSA commented:
“The newest FSA Student loan System stands for the same as being the prominent special purpose user financial worldwide. Adjust support service, we are going to make the greatest info and you may possibilities readily available and put these to benefit Us citizens that have college loans. Whenever FSA people changeover to the the brand new handling and you will repair environment within the 2019, they’re going to discover a customer support program that is because the in a position to just like the people throughout the individual field. The effect might be an improved sense for college students – our people – and you will significant positives to 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’s asked acquisition of Higher Lakes sets two of ED’s four primary education loan servicers; the remainder was Navient and you can FedLoan Repair.
“Shifting to your growth of the state-of-the-ways loan maintenance platform tend to enable me to deliver the most readily useful you are able to experience to possess individuals as the our organizations https://directlenderloans.org/payday-loans-wa/ become nearer along with her,” told you Joe Popevis, president away from Nelnet Diversified Options (NDS). NDS possesses Nelnet Repair, Nelnet’s servicing organization, and also will individual Great Lakes’ upkeep company. “It purchase boosts all of our technology combination and you may venture, making united states regarding the strongest position you’ll to enhance the organization of the fresh system.”
Nelnet and you will High Ponds have also collaborating for almost 2 yrs growing yet another, world class repair system to possess authorities-had student education loans because of a partnership
According to the team statement, Great Lakes and you may Nelnet will keep the line of labels, upkeep operations, and you may working organizations, that have Jeff Crosby top Great Lakes as its Chief executive officer, and every continues to compete for brand new education loan frequency lower than its particular established bargain towards Department from Degree. Throughout the years, common qualities organizations usually consist of and you can help both the Great Lakes and you may Nelnet servicing surgery.
Based for the Madison, Wisconsin, Great Lakes and its own parent affiliated classification were providing pupils availableness degree while the 1967. Today, High Ponds has step one,800 professionals. High Ponds Ceo Jeff Crosby told you,