Beneath the regards to this new contract, Nelnet pays $150.0 mil in dollars for all of one’s a fantastic stock out-of High Ponds. The order often choose , at the mercy of regular closure standards, mostly the newest expiration otherwise cancellation of your own relevant waiting periods significantly less than new Hart-Scott-Rodino Antitrust Advancements Operate off 1976.
High Lakes may also still bring tech and certain management help functions so you can Higher Ponds Degree Firm pursuant so you can a great guarantor features contract.
Nelnet’s expected purchase of Higher Ponds pairs two of ED’s five top student loan servicers; the others try Navient and you will FedLoan Repair.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos launched the lady 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 latest Master Functioning Manager off FSA commented:
“The FSA Education loan Program represents the equivalent of as being the biggest special-purpose consumer financial globally. To improve customer service, we shall do the top http://www.directlenderloans.org/payday-loans-ks/ records and capabilities readily available and put these to work for Us americans having college loans. When FSA users changeover on the handling and you may maintenance environment from inside the 2019, they select a customer care program which is while the capable just like the people on the personal market. The result will be a significantly better experience for college students – all of our consumers – and you will significant masters on 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 iA Institute
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).
Nelnet discover Great Ponds Instructional Financing Qualities
“The audience is joining together ninety years of business experience, and additionally bringing a great provider to government and private education loan individuals, loan providers, and you may colleges. With your combined info, we shall need a strategy with which has most readily useful-in-class tech options, confirmed functional potential, and you can consumer experience designs, to create a superior sense you to guarantees the borrowers discover better payment options for their private facts. High Lakes and you will Nelnet currently have the chance to changes student mortgage repair getting millions of individuals, providing a typical and you can unmatched debtor experience and also the better technology to possess student loan repair.”
Based into the Madison, Wisconsin, Great Ponds and its particular mother associated classification had been providing college students supply advanced schooling once the 1967. Today, Higher Lakes enjoys 1,800 employees. Great Lakes Chief executive officer Jeff Crosby said,
“Today is a fantastic date having Higher Ponds and our very own group, and also the people we do have the opportunity to suffice. High Ponds and you can Nelnet have been management within the student loan maintenance for many years of the emphasizing working brilliance and by thinking i can always perform more so you can suffice the people. Our values and you will communities fit both and i am confident i will be able to do far more to alter the newest lives of the individuals, lenders, and you will schools i serve as an integral part of a comparable cluster.”
In ’09, High Lakes and Nelnet was approved contracts so you can service authorities-possessed student education loans with respect to the brand new You.S. Service out of Knowledge. Such agreements are set so you’re able to expire inside .