Nelnet discover Great Ponds Informative Financing Attributes

Nelnet discover Great Ponds Informative Financing Attributes

This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos revealed this lady 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, the fresh Captain Operating Manager out of FSA commented:

“The new FSA Student loan System represents roughly the same as as the prominent special purpose individual lender global. To improve customer care, we’re going to do the greatest records and capabilities offered and place these to work for Americans with college loans. When FSA users transition payday loans in Pennsylvania on the fresh new handling and you can maintenance environment for the 2019, they will look for a customer care system that’s as the capable due to the fact one regarding the personal markets. The outcome could be an improved feel for college students – our people – and you will meaningful professionals towards 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 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).

“We have been bringing together 90 several years of community experience, together with taking an excellent service so you’re able to government and private student loan consumers, loan providers, and you may universities. With this mutual information, we’ll grab an approach containing most readily useful-in-group technical expertise, confirmed working opportunities, and you will buyers sense designs, which will make an exceptional sense you to assures all of the individuals discover the top installment options for the personal factors. Higher Lakes and you may Nelnet now have the ability to change college student financing upkeep to own scores of borrowers, providing a frequent and you will unrivaled borrower sense plus the finest tech getting student loan maintenance.”

Headquartered within the Madison, Wisconsin, Higher Lakes as well as mother associated group had been permitting children access higher education because 1967. Now, Higher Lakes keeps step 1,800 group. Higher Ponds Ceo Jeff Crosby said,

“Today is a great day to possess Higher Ponds and you will our very own group, while the people we do have the possibility to serve. Higher Ponds and Nelnet have been frontrunners into the student loan maintenance for a long time of the centering on working perfection and by assuming we can invariably carry out so much more to help you suffice our very own consumers. Our values and you can communities complement each other i am also convinced we will be capable of way more to improve the fresh lifetime of your consumers, loan providers, and universities we act as an integral part of an equivalent people.”

Nelnet to find High Lakes Educational Financing Qualities

In 2009, Higher Ponds and you will Nelnet was basically given deals in order to service bodies-owned student loans for the You.S. Institution away from Degree. These contracts are prepared in order to expire from inside the .

According to organization announcement, Great Ponds and Nelnet will keep their distinctive line of brands, servicing surgery, and working teams, having Jeff Crosby leading Great Ponds as the Chief executive officer, and every will continue to participate for brand new student loan volume below their particular present offer to the Institution off Training. Throughout the years, shared properties groups will integrate and you will service both the Higher Ponds and you will Nelnet maintenance functions.

Nelnet and you can Great Lakes have also collaborating for nearly two years to cultivate an alternate, top notch maintenance system having bodies-owned student education loans due to a joint venture. The fresh repair platform significantly less than creativity usually need modern tools so you can effectively level for further regularity, protect consumer advice, and you may assistance improved debtor experience efforts. The new efficiencies gained by the leveraging a single program to have regulators-possessed money support many so much more individuals will offer High Ponds and you may Nelnet possibilities to buy ways to after that improve debtor experience.