Nelnet to get Great Lakes Educational Financing Services
Nelnet to get Great Lakes Educational Financing Services

In terms of this new arrangement, Nelnet will pay $150.0 billion from inside the dollars for everybody of the an excellent inventory away from Higher Lakes. The order commonly settle on , at the mercy of classic closing requirements, mainly the brand new termination or cancellation of your applicable wishing attacks significantly less than the fresh new Hart-Scott-Rodino Antitrust Advancements Work from 1976.

High Lakes will consistently provide technical and you can particular administrative support qualities so you can High Ponds Degree Firm pursuant to a good guarantor attributes arrangement.

Nelnet's expected purchase of Great Ponds pairs a couple of ED's five top student loan servicers; the remainder try Navient and FedLoan Servicing.

This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos established 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, the latest Captain Working Administrator from FSA commented:

“New FSA Student loan System is short for the equivalent of being the biggest special-purpose individual financial international. Adjust customer service, we'll do the greatest records and you will opportunities offered and put them to benefit People in the us that have student education loans. When FSA customers transition towards the the new processing and you will maintenance ecosystem during the 2019, they're going to see a customer care program which is because the in a position to due to the fact one about individual field. The end result might possibly be a significantly better sense for students – our very own customers – and you may meaningful experts on the 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 https://directlenderloans.org/payday-loans-sd/ 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).

Nelnet to obtain Higher Ponds Academic Loan Services

"We are bringing together 90 several years of globe sense, as well as delivering a great solution so you can federal and personal education loan individuals, lenders, and colleges. With our mutual tips, we'll need an approach that contains greatest-in-classification tech options, shown functional opportunities, and customer experience innovations, to make an excellent experience that guarantees all of the individuals discover better cost options for the private items. Higher Ponds and you may Nelnet have the ability to changes scholar loan servicing to have countless individuals, getting an everyday and you will unmatched borrower experience and also the better technical to possess education loan maintenance."

Based inside Madison, Wisconsin, High Ponds and its particular mother affiliated classification had been enabling pupils supply advanced schooling as 1967. Today, Great Lakes keeps step one,800 staff. Great Lakes President Jeff Crosby said,

"Now is a fantastic time to possess Great Ponds and our very own employees, plus the consumers we possess the chance to serve. High Lakes and Nelnet have been frontrunners inside education loan repair for a long time by emphasizing operational perfection by trusting i can invariably carry out a lot more in order to serve our customers. All of our viewpoints and you will groups fit both and i am confident we will be able to perform a great deal more to evolve the fresh existence of one's consumers, loan providers, and you may universities i act as part of the same people."

Last year, High Ponds and Nelnet was in fact granted deals so you're able to service government-owned figuratively speaking for the brand new U.S. Department regarding Knowledge. These types of deals are set so you're able to expire into the .

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