Nelnet to get Higher Ponds Academic Financing Qualities

This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos revealed her 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 fresh new Master Operating Manager out-of FSA commented:

“The fresh FSA Education loan Program stands for the equivalent of being the premier special-purpose individual lender global. To improve support service, we’ll make better info and you may possibilities offered and set these to work for People in the us with student loans. Whenever FSA people change towards the fresh new running and servicing environment into the 2019, they will select a customer http://www.paydayloansonlinedirect.com/installment-loans-il service program which is because capable because the any regarding the private field. The outcome could well be a much better sense for students – our users – and significant benefits into 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.

• 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).

“We’re bringing together 90 several years of business experience, as well as delivering a good service to government and private education loan consumers, loan providers, and colleges. With our shared info, we’re going to simply take an approach which has had better-in-group technology assistance, proven working prospective, and you may customer experience innovations, to help make a superior experience that assures all the borrowers discover the most readily useful payment options for its individual issues. Great Lakes and you may Nelnet now have the opportunity to transform pupil loan maintenance having an incredible number of borrowers, delivering an everyday and you will unmatched borrower experience and better tech to own education loan repair.”

Based in the Madison, Wisconsin, Higher Lakes as well as mother affiliated classification were helping pupils supply degree once the 1967. Now, Great Lakes have step 1,800 professionals. High Lakes Chief executive officer Jeff Crosby said,

“Now is a fantastic date to own Great Lakes and our staff, as well as the users we have the opportunity to serve. Great Lakes and you may Nelnet were leaders in education loan repair for decades by the concentrating on working perfection and also by thinking we can always perform a lot more to help you suffice the people. The viewpoints and you may communities match one another and i am sure i will be able to perform far more to switch new life of borrowers, lenders, and universities we act as a part of a similar team.”

Nelnet to find Great Lakes Educational Financing Properties

In ’09, Great Lakes and you may Nelnet was given agreements in order to provider bodies-possessed student loans for the newest U.S. Company off Studies. These deals are ready in order to expire in .

According to the business statement, Higher Ponds and you may Nelnet will maintain their collection of names, servicing surgery, and you can operational teams, with Jeff Crosby leading Higher Lakes as the President, each continues to participate for new education loan frequency under the particular current contract towards Institution out-of Education. Through the years, shared attributes communities commonly consist of and you will assistance both Great Lakes and you may Nelnet repair procedures.

Nelnet and Great Lakes have also working together for almost 24 months to grow another type of, world class upkeep program to own bodies-had college loans courtesy a partnership. The newest upkeep platform less than advancement usually use today’s technology to help you effortlessly measure for further regularity, protect consumer advice, and you can assistance increased borrower feel effort. The fresh efficiencies gathered from the leveraging one platform having government-owned money help many a lot more consumers will provide Great Lakes and Nelnet opportunities to purchase solutions to after that enhance debtor experiences.