Within the regards to the fresh arrangement, Nelnet will pay $150.0 million inside the bucks for everyone of the stock out of Great Ponds. The transaction tend to settle on , at the mercy of typical closing standards, mainly the fresh termination otherwise termination of the relevant wishing attacks below brand new Hart-Scott-Rodino Antitrust Developments Act of 1976.
Great Lakes will consistently give technical and you will certain administrative assistance functions in order to Great Ponds Advanced schooling Enterprise pursuant so you’re able to a beneficial guarantor functions agreement.
Nelnet’s expected acquisition of High Lakes pairs a couple of ED’s four top education loan servicers; the remainder is Navient and you can FedLoan Servicing.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos announced her 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, new Captain Functioning Administrator out of FSA commented:
“The fresh FSA Education loan Program means the equivalent of being the prominent special-purpose consumer financial worldwide. To evolve support service, we are going to do the greatest details and you may possibilities readily available and place them to work for People in the us that have student loans. Whenever FSA people changeover for the this new running and you can servicing environment in the 2019, they’re going to see a customer support program that’s just like the able to as one in the private field. The end result was a much better experience for students – all of our consumers – and you will important pros to your 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 new iA Institute
Stephanie Eidelman
Nelnet installment loans online Minnesota (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 to get High Lakes Educational Financing Qualities
“We are joining together ninety several years of business experience, together with taking the solution to government and personal student loan borrowers, lenders, and you will universities. With our mutual tips, we are going to bring an approach with better-in-category technology assistance, shown working capabilities, and you can customer sense designs, in order to make an excellent experience you to assurances every consumers discover the ideal installment choices for the personal things. Higher Lakes and Nelnet now have the opportunity to transform college student financing repair having scores of consumers, taking a frequent and unrivaled borrower experience and greatest technical getting student loan servicing.”
Based in Madison, Wisconsin, Great Ponds as well as moms and dad associated category was in fact helping pupils accessibility advanced schooling while the 1967. Now, High Ponds has actually step 1,800 teams. Great Lakes Ceo Jeff Crosby said,
“Today is a fantastic date having Higher Ponds and you will all of our team, and the users we possess the possibility to suffice. High Lakes and Nelnet was frontrunners when you look at the student loan repair for decades by the targeting operational excellence by assuming we can always carry out a great deal more so you can suffice all of our customers. Our very own opinions and you can organizations complement one another i am also confident we are able to perform so much more to evolve the existence of one’s consumers, lenders, and you will colleges we act as part of a similar team.”
During 2009, High Lakes and Nelnet were granted agreements so you’re able to provider government-owned figuratively speaking on the part of the latest You.S. Agency of Studies. These types of deals are prepared so you’re able to end inside the .