This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos revealed the girl 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 newest Head Performing Manager from FSA commented:
“The brand new FSA Education loan System is short for the same as as being the prominent special-purpose consumer financial internationally. To alter customer care, we will use the best information and prospective available and place these to work with Americans that have student loans. When FSA people changeover towards the newest handling and you will upkeep environment from inside the 2019, might come across a support program that’s just like the capable due to the fact people about individual market. The result could be a much better sense for college students – our people – and you may meaningful masters to 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 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.
- 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). Lees verder