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).
“The audience is bringing together ninety numerous years of world sense, and getting a good service in order to federal and private education loan consumers, loan providers, and colleges. With our mutual tips, we are going to take an approach with best-in-category technology options, demonstrated operational prospective, and you can buyers feel designs, to manufacture a superior sense you to guarantees all the consumers discover the ideal installment options for its personal circumstances. Higher Ponds and Nelnet have the opportunity to alter student mortgage maintenance to have an incredible number of consumers, bringing a routine and you can unmatched borrower sense additionally the best technology having student loan maintenance.”
Based in Madison, Wisconsin, High Ponds and its moms and dad associated group was basically permitting college students access advanced schooling given that 1967. Today, Great Lakes features 1,800 professionals. Higher Ponds President Jeff Crosby told you,
“Now is an excellent day to possess Higher Lakes and all of our staff, in addition to people we possess the chance to serve. High Lakes and you can Nelnet was in fact management from inside the education loan servicing for decades because of the focusing on working excellence by trusting we can still do a whole lot more in order to suffice the people. All of our philosophy and you may organizations fit both i am also pretty sure we will be able to perform alot more to alter new lifestyle of your own individuals, lenders, and you may universities i serve as part of the same party.”
Nelnet discover Great Ponds Educational Financing Properties
In ’09, Higher Ponds and you may Nelnet have been given contracts to help you service bodies-had student education loans on behalf of the fresh You.S. Company from Studies. Such contracts are prepared so you’re able to expire inside the .
With regards to the business statement, High Ponds and Nelnet will maintain their type of names, servicing operations, and you may operational groups, which have Jeff Crosby leading Higher Lakes as the President, each will continue to compete for brand new student loan regularity around its particular present package on the Company from Training. Through the years, shared attributes organizations will include and service both Great Ponds and you can Nelnet servicing procedures.
Nelnet and you can High Ponds have also working together for nearly 2 years growing a special, world-class repair system for regulators-possessed student education loans by way of a partnership. The servicing platform significantly less than innovation tend to need today’s technology so you’re able to efficiently level for additional regularity, protect consumer suggestions, and you may help improved debtor sense attempts. The fresh efficiencies attained by the leverage a single system getting authorities-owned finance help millions a lot more individuals will provide High Lakes and you will Nelnet chances to invest in techniques to after that augment debtor knowledge.