“Now is a superb time for Great Ponds and you will the personnel, therefore the customers we possess the possibility to serve. Great Ponds and you may Nelnet was indeed leaders in education loan repair for many years by the targeting functional brilliance by believing we can invariably manage even more so you’re able to serve our customers. Our opinions and you may organizations fit both i am also sure i will be capable of much more to evolve the new lifestyle of your own borrowers, lenders, and you can universities i act as a part of an identical cluster.”
Nelnet and High Ponds have also collaborating for pretty much 24 months to grow a separate, world class repair system to own authorities-owned figuratively speaking owing to a joint venture
With respect to the providers statement, Great Lakes and you can Nelnet will keep their collection of labels, servicing operations, and you will operational organizations, with Jeff Crosby best High Lakes as the Chief executive officer, and each will continue to participate for new education loan regularity below their respective established bargain towards Service regarding Knowledge. Over the years, mutual features teams have a tendency to include and you can service both the Great Ponds and you can Nelnet upkeep businesses.
New maintenance program significantly less than advancement often incorporate modern tools in order to efficiently size for further volume, include consumer information, and you may service increased borrower experience initiatives. The new efficiencies gathered of the leveraging just one platform to own government-owned fund help hundreds of thousands way more individuals offers Higher Ponds and you will Nelnet chances to invest in solutions to further augment borrower experience.
“Progressing on development of our county-of-the-ways financing repair program tend to permit me to deliver the finest it is possible to experience to possess individuals since all of our organizations been nearer together,” told you Joe Popevis, president out-of Nelnet Diversified Alternatives (NDS). NDS has Nelnet Maintenance, Nelnet’s upkeep organization, and will also own Higher Lakes’ servicing company. “So it deal accelerates our tech integration and you may cooperation, leaving us in the strongest status you can easily to compliment the organization of the the fresh new program.”
According to the terms of the fresh contract, Nelnet pays $150.0 mil into the cash for everybody of your own outstanding inventory from Higher Lakes. Your order will decide on , subject to vintage closing criteria, mostly the brand new conclusion or termination of the relevant waiting symptoms significantly less than the new Hart-Scott-Rodino Antitrust Improvements Operate out-of 1976.
High Ponds might still render technical and you can certain administrative support properties so you can Great Lakes Advanced schooling Business pursuant so you can a guarantor attributes arrangement.
Nelnet’s requested purchase of Great Lakes pairs two of ED’s four primary student loan servicers; others was Navient and you will FedLoan Upkeep.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos launched 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, brand new Chief Functioning Administrator from FSA commented:
“The FSA Education loan Program is short for roughly the same as as the premier special-purpose consumer financial all over the world. To alter customer support, we’ll grab the top facts and you will potential readily available and place these to work with People in america with student education loans. Whenever FSA users transition on the the newest operating and you will repair environment for the 2019, they’ll look for a customer care program that is once the in a position to while the any on the personal markets. The end result could be an improved experience for students – the people – and you can meaningful positives 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.
Nelnet’s expected acquisition of Higher Lakes sets a couple of ED’s four no. 1 education loan online installment loans West Virginia servicers; the remainder try Navient and you may FedLoan Maintenance.
“Moving forward to your development of our state-of-the-ways mortgage maintenance system commonly allow us to provide the greatest you are able to sense to own consumers as our groups started better along with her,” told you Joe Popevis, chairman off Nelnet Diversified Possibilities (NDS). NDS owns Nelnet Servicing, Nelnet’s maintenance providers, and also will individual Great Lakes’ maintenance company. “This purchase speeds up our tech consolidation and cooperation, making united states regarding most powerful position you can to enhance the growth of your the new program.”
Nelnet and you can Higher Ponds have also been collaborating for pretty much 24 months growing a different sort of, world-class servicing system for regulators-had student education loans thanks to a joint venture
According to organization statement, Great Lakes and you may Nelnet will maintain the line of labels, servicing surgery, and you will functional communities, which have Jeff Crosby top Higher Lakes as its President, and each will continue to compete for new education loan frequency significantly less than its particular established package toward Service out of Knowledge. Over time, common attributes communities tend to consist of and assistance both the High Lakes and you will Nelnet upkeep procedures.
Based in the Madison, Wisconsin, High Ponds and its particular moms and dad affiliated classification have been providing people access advanced schooling as 1967. Now, High Ponds provides step one,800 staff. Great Ponds President Jeff Crosby told you,