Nelnet to locate Higher Ponds Instructional Mortgage Services
Within the regards to this new arrangement, Nelnet will pay $150.0 mil when you look at the bucks for all of the a fantastic stock out-of Higher Ponds. The transaction have a tendency to decide on , at the mercy of standard closure conditions, mainly this new expiration or cancellation of applicable wishing periods under the fresh new Hart-Scott-Rodino Antitrust Advancements Operate from 1976.
Great Lakes will also consistently provide technical and you can specific management support features to High Lakes Degree Company pursuant so you’re able to a great guarantor services arrangement.
Nelnet’s requested acquisition of High Ponds sets two of ED’s four number 1 education loan servicers; the rest try Navient and you will FedLoan Upkeep.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos launched the lady 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, the fresh Captain Functioning Manager out-of FSA commented:
“Brand new FSA Education loan System stands for the equivalent of being the premier special-purpose consumer bank global. To alter customer service, we’re going to take the better details and you will possibilities offered and set them to benefit Us citizens with figuratively speaking. Whenever FSA consumers change to the the control and servicing environment inside 2019, might pick a customer care system that’s as able to given that any on the individual sector. The outcome would be a far better sense for students – our very own users – and you may important gurus into 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“) Kentucky installment loans would be just what ED would be looking for. Perhaps the closer ties between the companies were to be expected.
- 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).
Nelnet discover High Lakes Informative Financing Services
“We have been bringing together ninety many years of business sense, in addition to delivering a great service so you can federal and private student loan borrowers, lenders, and you will colleges. With the help of our shared resources, we are going to simply take a strategy that has better-in-classification technology possibilities, confirmed working prospective, and you may customers feel designs, to create an exceptional feel that assurances the borrowers get the top repayment alternatives for their personal activities. Great Lakes and you will Nelnet have the chance to changes student loan repair having countless consumers, providing a typical and you may unrivaled borrower sense and also the finest tech to own education loan maintenance.”
Based for the Madison, Wisconsin, Higher Ponds and its own mother or father connected class was in fact providing people access degree since the 1967. Now, High Lakes has step one,800 staff. Higher Lakes Chief executive officer Jeff Crosby said,
“Today is a great go out getting High Ponds and our staff, plus the customers we do have the chance to serve. High Lakes and you will Nelnet was indeed management inside the student loan maintenance for decades of the centering on working perfection and by believing we can invariably perform much more so you’re able to serve our customers. All of our values and you can communities fit both and i am convinced we will be capable of significantly more to evolve the fresh new life of your own consumers, lenders, and you may schools we serve as a part of an identical people.”
In ’09, High Ponds and Nelnet have been issued agreements in order to service government-possessed figuratively speaking on the part of the fresh You.S. Company off Training. These types of contracts are ready to end during the .