Nelnet to acquire Great Lakes Informative Mortgage Characteristics

This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos revealed the lady 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 brand new Head Functioning Officer regarding FSA commented:

“New FSA Student loan Program means roughly the same as being the prominent special-purpose user lender around the globe. To alter customer support, we shall grab the finest info and you will opportunities offered and set these to benefit People in the us which have college loans. Whenever FSA users transition into the the newest control and you may servicing ecosystem during the 2019, they’ll see a customer support program that is just like the capable given that any on the personal field. The outcome would be a far better feel for college students – all of our customers – and you can significant masters for 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 $255 title loans online same day Mississippi 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.

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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).

« Our company is combining ninety many years of community experience, together with delivering a fantastic service in order to federal and private education loan individuals, loan providers, and you can colleges. With this combined resources, we will bring a strategy that has had top-in-category technology options, shown operational prospective, and you can customers sense innovations, to make an excellent sense one to assures all the consumers select the greatest repayment alternatives for their personal items. Higher Ponds and Nelnet actually have the chance to transform pupil loan repair having scores of individuals, getting a consistent and unmatched borrower experience and also the ideal technology to own student loan servicing. »

Based from inside the Madison, Wisconsin, Higher Lakes and its particular parent associated classification was in fact enabling people availableness advanced schooling because 1967. Now, High Lakes has actually 1,800 group. High Lakes President Jeff Crosby told you,

« Today is a fantastic go out to possess Higher Ponds and you will our very own staff, together with customers we possess the opportunity to serve. High Lakes and Nelnet was indeed frontrunners inside the education loan maintenance for a long time of the focusing on working excellence and also by assuming i can still carry out much more to help you suffice our people. All of our values and you can teams complement each other i am also convinced i will be able to do much more to evolve the latest lifetime of your borrowers, loan providers, and you can universities i act as a part of the same group. »

Nelnet to acquire High Lakes Educational Loan Services

In ’09, Higher Ponds and Nelnet was approved deals in order to service bodies-owned student education loans with respect to the U.S. Agency out of Degree. These types of deals are prepared to end from inside the .

According to business statement, High Ponds and you may Nelnet will keep their distinct brands, repair surgery, and working groups, which have Jeff Crosby top Great Ponds as the Ceo, and each will continue to contend for brand new education loan volume below their respective established bargain to the Agency out-of Education. Throughout the years, common attributes teams tend to feature and service both High Lakes and you will Nelnet upkeep surgery.

Nelnet and you will Higher Lakes are also working together for nearly 2 yrs to grow a special, first class upkeep system getting authorities-had student loans because of a jv. The maintenance program around innovation usually incorporate today’s technology to efficiently scale for further regularity, include buyers guidance, and support enhanced borrower experience initiatives. The efficiencies attained of the leveraging just one program to own bodies-had fund help hundreds of thousands a great deal more consumers offers Higher Lakes and you can Nelnet opportunities to invest in ways to next boost borrower event.

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