This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos announced this lady purpose 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 Working Officer out-of FSA commented:
“New FSA Education loan Program signifies the equivalent of being the premier special-purpose user lender internationally. Adjust customer service, we are going to do the most useful ideas and you will opportunities available and set these to work with Us citizens with college loans. Whenever FSA customers transition with the the latest control and upkeep environment during the 2019, they’ll look for a support program that’s due to the fact capable due to the fact any from the individual sector. The outcome might be a far better experience for students – all of our users – and you can meaningful benefits on 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.
- The fresh 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).
“We are joining together 90 years of world sense, plus providing an excellent provider so you’re able to government and personal education loan borrowers, loan providers, and universities. With your shared resources, we will bring a method which includes finest-in-class technical possibilities, proven working possibilities, and you can customer feel designs, to create an excellent experience one to assurances every consumers get the best fees alternatives for the private items. High Lakes and Nelnet currently have the chance to changes college student financing servicing having scores of borrowers, getting a regular and you may unmatched debtor sense and finest technical to possess student loan servicing.”
Headquartered in the Madison, Wisconsin, Higher Ponds and its father or mother connected classification have been permitting youngsters accessibility advanced schooling once the 1967. Today, Higher Lakes enjoys step one,800 teams. Great Ponds Chief executive officer Jeff Crosby said,
“Today is a great date for High Lakes and you may our very own team, together with customers we possess the possibility to serve. High Lakes and you will Nelnet was indeed management when you look at the student loan maintenance for many years by centering on operational perfection and by trusting we can always manage even more so you’re able to suffice our very own people. Our values and teams match one another i am also pretty sure we are capable of even more to switch the fresh lifetime of borrowers, loan installment loan in Kansas providers, and you will schools i serve as part of a similar team.”
Nelnet to obtain High Lakes Instructional Loan Properties
In ’09, High Lakes and you may Nelnet were approved deals to service regulators-possessed figuratively speaking on behalf of the fresh You.S. Department away from Training. Such agreements are set to help you end when you look at the .
Depending on the team announcement, Great Lakes and you can Nelnet will maintain the collection of brands, maintenance operations, and you may functional groups, that have Jeff Crosby best Higher Lakes as the Ceo, each will continue to participate for new education loan regularity less than the particular existing deal to your Agency of Knowledge. Over time, shared features groups usually consist of and you may assistance both the Great Lakes and Nelnet maintenance businesses.
Nelnet and you can High Lakes have also been working together for almost a couple of years to grow another type of, world class repair program getting bodies-had student loans compliment of a partnership. The new upkeep program below development tend to utilize modern tools so you can effortlessly size for additional volume, manage consumer pointers, and you may service enhanced borrower feel efforts. The brand new efficiencies gathered from the leverage just one program to possess regulators-owned fund help hundreds of thousands a whole lot more consumers gives Higher Ponds and you can Nelnet possibilities to invest in methods to then improve debtor feel.
