Nelnet to get Great Ponds Informative Loan Attributes

This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos launched their 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, new Head Operating Manager of FSA commented:

“The newest FSA Student loan Program signifies the equivalent of being the premier special-purpose user lender worldwide. To improve customer care, we are going to use the most useful information and you can potential readily available and place these to benefit Us citizens having college loans. When FSA consumers change to your the operating and maintenance ecosystem in 2019, they will see a customer support program which is since the in a position to since one on personal markets. The outcome would-be a significantly better experience for students – all of our users – and you will significant benefits 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.

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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 ninety numerous years of world experience, together with bringing the solution to help you federal and personal student loan borrowers, lenders, and you will colleges. With our combined information, we are going to need a method with ideal-in-class tech assistance, confirmed working possibilities, and consumer feel innovations, in order to make an exceptional feel you to definitely assures most of the borrowers find the best cost alternatives for their personal items. High Lakes and Nelnet actually have the opportunity to change college student loan maintenance having countless consumers, bringing a consistent and you can unmatched borrower feel additionally the best technical for student loan servicing.”

Headquartered during the Madison, Wisconsin, Higher Ponds and its parent connected classification had been providing students availableness advanced schooling while the 1967. Today, High Lakes features 1,800 staff. High Lakes President Jeff Crosby said,

“Now is a fantastic big date having Great Ponds and you may our very own employees, together with consumers we do have the possible opportunity to suffice. Higher Ponds and you can Nelnet have been leadership inside student loan repair for many years by the targeting working excellence and by thinking we can still do alot more so you’re able to suffice all of our consumers. All of our viewpoints and you can groups match both i am also sure we will be able to do a lot more to evolve the lifetime of the individuals, lenders, and you can universities i act as part of a similar team.”

Nelnet to locate High Lakes Educational Loan Features

During 2009, Higher Ponds and you may Nelnet have been provided agreements to service government-possessed student education loans on behalf of the latest U.S. Department off Knowledge. These agreements are prepared in order to end inside .

With regards to the business statement, Great Ponds and Nelnet will keep their distinct names, repair procedures, and operational communities, having Jeff Crosby best High Lakes as its Chief executive officer, and every will continue to vie for brand new education loan volume below the particular current bargain on Service out of Training. www.directlenderloans.org/title-loans-sd/ Throughout the years, common services groups have a tendency to consist of and support both the Higher Ponds and you will Nelnet servicing functions.

Nelnet and you can Higher Ponds have also been working together for almost 2 years to develop a separate, world class repair system getting regulators-had student loans courtesy a partnership. The brand new upkeep platform around advancement will need modern technology in order to efficiently scale for further frequency, protect customers advice, and support increased debtor experience effort. The fresh efficiencies gathered of the leveraging just one platform to possess authorities-had fund help millions more borrowers will provide High Ponds and you may Nelnet possibilities to spend money on solutions to after that boost borrower skills.