This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos established the girl 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 Captain Operating Manager from FSA commented:
“The new FSA Student loan System means roughly the same as being the largest special purpose user bank worldwide. To switch customer care, we shall take the finest ideas and you may opportunities available and put them to work for Us americans with student loans. Whenever FSA consumers change on brand new control and you will repair environment from inside the 2019, they are going to find a customer care system that’s just like the in a position to as the people from the individual markets. The end result will be a significantly better experience for college students – the customers – and meaningful positives on 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.
- The newest 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).
“The audience is joining together 90 years of community feel, and providing an excellent service in order to federal and private student loan consumers, loan providers, and you can colleges. With your combined tips, we shall capture an approach who has most readily useful-in-group technical assistance, demonstrated working potential, and you may buyers feel innovations, to create an exceptional feel you to ensures every borrowers find the most readily useful payment alternatives for their individual points. High Ponds and you will Nelnet now have the chance to changes scholar loan upkeep to own countless individuals, bringing a typical and you will unrivaled debtor sense together with greatest technical for education loan repair.”
Headquartered from inside the Madison, Wisconsin, Great Lakes and its particular father or mother affiliated classification was in fact providing pupils availability degree given that 1967. Now, High Ponds provides step 1,800 teams. Great Ponds President Jeff Crosby said,
“Today is a wonderful day getting Higher Lakes and our very own teams, and also the people we do have the opportunity to suffice. Great Lakes and you may Nelnet was in fact frontrunners inside student loan maintenance for a long time of the concentrating on working brilliance and by trusting i can invariably manage so much more to serve our very own users. Our beliefs and you may communities fit one another i am also pretty sure we are able to do even more to improve the new life of individuals, loan providers, and you can schools we serve as a part of a comparable people.”
Nelnet to obtain High Lakes Academic Loan Attributes
During 2009, Higher Ponds and you can Nelnet was approved agreements to help you solution regulators-owned college loans on the behalf of this new U.S. Agencies out-of Education. These types of deals are prepared so you can expire within the .
According to the providers announcement, Great Lakes and you will Nelnet will maintain the collection of labels, maintenance procedures, and you will working communities, which have Jeff Crosby best High Lakes as the Ceo, and every will continue to participate for new education loan frequency lower than its particular existing price with the Agencies away from Training. Through the years, common functions teams have a tendency to incorporate and you can support both Higher Lakes and you can Nelnet repair surgery.
Nelnet and you can Higher Ponds have also been working together for nearly couple of years to develop a different sort of, top notch repair program having government-possessed figuratively speaking due to a jv. The latest repair platform significantly less than creativity have a tendency to utilize modern tools to effectively size for additional frequency, cover buyers pointers, and you will service enhanced debtor feel effort. The efficiencies achieved of the leverage one system having bodies-owned loans supporting many way more individuals can give High Ponds and you can Nelnet chances to put money into methods to next augment debtor feel.