Beneath the terms of the fresh new arrangement, Nelnet will pay $150.0 mil inside the dollars for everybody of a good inventory away from Great Lakes. The transaction often choose , subject to typical closing requirements, mainly the new termination or cancellation of the relevant wishing episodes less than this new Hart-Scott-Rodino Antitrust Advancements Work away from 1976.
Higher Lakes will continue to promote technical and certain administrative help properties to help you Higher Lakes Advanced schooling Corporation pursuant to help you a great guarantor services contract.
Nelnet’s questioned purchase of Great Ponds sets a couple of ED’s four number one education loan servicers; the others was Navient and 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, the newest Chief Performing Manager off FSA commented:
“The fresh new FSA Education loan System is short for roughly the same as being the biggest special-purpose individual lender around the world. To change customer support, we will take the greatest ideas and you will potential offered and set these to work with Us citizens that have student loans. Whenever FSA people change towards the the latest running and you can repair environment for the 2019, they will certainly pick a customer service system that is because the capable once the any throughout the private markets. The result would-be an improved experience for college students – our very own customers – and you may significant advantages for 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.
- The fresh 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 locate Higher Lakes Educational Loan Features
« We are bringing together ninety many years of world experience, as well as bringing a good service in order to federal and personal student loan consumers, lenders, and you will schools. With the help of our shared information, we are going to capture an approach containing my review here finest-in-class technology expertise, demonstrated working opportunities, and you will buyers sense designs, in order to make an excellent experience you to assurances all borrowers discover the top installment alternatives for their private items. High Ponds and you can Nelnet actually have the ability to alter beginner mortgage maintenance to own millions of consumers, delivering a routine and you will unrivaled debtor experience and also the most readily useful technology getting education loan servicing. »
Based in Madison, Wisconsin, High Ponds and its moms and dad connected classification was indeed permitting people availability degree given that 1967. Now, Higher Ponds provides step 1,800 professionals. High Lakes Ceo Jeff Crosby told you,
« Now is a fantastic time to own Higher Ponds and you will our teams, plus the customers we have the opportunity to suffice. Great Lakes and you can Nelnet was leadership in the student loan maintenance for decades of the targeting working perfection by assuming i can still create a great deal more so you’re able to serve all of our users. Our values and you can groups fit one another and i am sure i will be able to do a great deal more to alter the new lifestyle of your own individuals, lenders, and colleges we act as a part of a comparable people. »
During 2009, Higher Lakes and you may Nelnet have been provided contracts in order to service authorities-owned student loans with respect to the new You.S. Institution regarding Studies. These agreements are set to end during the .