Nelnet to acquire Higher Lakes Academic Loan Properties
Underneath the regards to the latest agreement, Nelnet pays $150.0 mil in dollars for everybody of the a fantastic inventory off Higher Ponds. The transaction have a tendency to settle on , susceptible to regular closure criteria, mainly the fresh termination or cancellation of one’s applicable wishing periods not as much as brand new Hart-Scott-Rodino Antitrust Advancements Operate regarding 1976.
High Lakes will even consistently offer tech and you may certain administrative support properties so you’re able to Illinois loans Great Ponds Degree Business pursuant to a beneficial guarantor qualities agreement.
Nelnet’s expected purchase of Higher Ponds sets two of ED’s five number one student loan servicers; the others was Navient and you can FedLoan Upkeep.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos established the woman 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, brand new Head Working Officer off FSA commented:
“The fresh FSA Student loan System is short for the same as as the biggest special-purpose individual lender worldwide. To switch customer care, we shall take the most useful info and you can potential readily available and place them to work with Us citizens with student education loans. Whenever FSA users change on the the latest operating and repair ecosystem when you look at the 2019, they will pick a customer service program which is since capable because people on private industry. The effect could be a significantly better experience for students – our users – and you can important masters with 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.
- This new 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 to get High Ponds Instructional Loan Attributes
“We’re combining 90 numerous years of industry feel, and providing a great provider so you can government and personal student loan individuals, loan providers, and schools. With our mutual resources, we’ll get an approach which has most readily useful-in-classification tech expertise, confirmed operational possibilities, and you may buyers experience designs, to produce an exceptional feel you to definitely assurances all the borrowers discover the most useful cost choices for the private facts. High Lakes and Nelnet have the ability to change student loan repair having scores of borrowers, bringing a typical and you will unmatched debtor feel in addition to greatest technical getting student loan servicing.”
Headquartered from inside the Madison, Wisconsin, High Ponds and its particular mother connected group was permitting students availability degree because 1967. Now, Higher Lakes provides step one,800 staff. Great Ponds Ceo Jeff Crosby told you,
“Now is a wonderful go out to own Great Ponds and you can the teams, and the users we do have the possible opportunity to suffice. Great Ponds and you will Nelnet was basically management into the education loan repair for many years from the emphasizing functional brilliance and by thinking i can still create alot more so you’re able to serve our very own consumers. Our very own viewpoints and groups complement one another i am also confident we will be capable of far more to alter the life of your borrowers, lenders, and schools we serve as an integral part of the same people.”
In 2009, Great Ponds and you can Nelnet was in fact granted deals to service government-had figuratively speaking on the behalf of the latest You.S. Agency regarding Education. These types of agreements are set in order to end when you look at the .