Nelnet and you may Higher Lakes have also been collaborating for pretty much a couple of years to cultivate a special, world-class repair program having authorities-had student education loans because of a jv. New repair program below development tend to use modern tools so you’re able to efficiently measure for additional regularity, include customer information, and you will support increased debtor feel attempts. This new efficiencies gathered by the leveraging a single program to possess government-owned fund help many so much more borrowers will provide High Lakes and you can Nelnet opportunities to invest in strategies to next increase debtor enjoy.

“Moving forward towards growth of all of our condition-of-the-ways mortgage repair platform have a tendency to enable me to deliver the most readily useful you’ll be able to experience to own individuals once the our very own teams started closer together,” told you Joe Popevis, chairman away from Nelnet Varied Choices (NDS). NDS possesses Nelnet Repair, Nelnet’s maintenance business, and also will own High Lakes’ repair team. “Which deal boosts all of our technology integration and you may venture, making us regarding strongest position you are able to to compliment the organization of the new platform.”

Under the terms of this new arrangement, Nelnet will pay $150.0 million inside the bucks for all of your a good stock from High Lakes. Your order have a tendency to decide on , at the mercy of classic closing criteria, primarily the brand new expiration $255 payday loans online same day Mississippi or cancellation of the applicable prepared attacks not as much as the fresh new Hart-Scott-Rodino Antitrust Improvements Act from 1976.

Great Ponds will additionally always bring tech and particular administrative service services in order to High Ponds Degree Firm pursuant so you can an excellent guarantor attributes contract.

Nelnet’s expected purchase of Higher Lakes sets a couple of ED’s four number one education loan servicers; others was Navient and you will FedLoan Servicing.

This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos established 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 fresh new Head Performing Administrator away from FSA commented:

“The FSA Education loan System signifies the same as as the biggest special purpose individual financial worldwide. To change customer support, we’ll use the finest facts and you may potential available and set these to work for Americans having college loans. When FSA consumers changeover to the the fresh new control and you will upkeep ecosystem during the 2019, they will see a customer support system that is just like the able to while the people from the individual field. The outcome was a far better sense for college students – our very own people – and you can important professionals to 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.

Nelnet to track down High Lakes Instructional Loan Characteristics

• 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).

“Our company is bringing together 90 many years of world experience, and additionally taking outstanding provider so you can federal and personal student loan individuals, lenders, and you will colleges. With the combined information, we will simply take a method which has had finest-in-classification tech systems, demonstrated operational potential, and you will customers sense innovations, to manufacture a superior sense you to definitely assurances all of the consumers discover the top payment choices for its personal products. Great Ponds and you may Nelnet now have the opportunity to transform pupil loan upkeep to own millions of consumers, getting an everyday and you will unmatched debtor sense therefore the ideal technical to possess student loan repair.”