In regards to the brand new agreement, Nelnet pays $150.0 billion during the cash for everyone of your the inventory from Great Lakes. Your order tend to decide on , subject to traditional closure criteria, generally the new conclusion otherwise termination of the applicable wishing attacks significantly less than the new Hart-Scott-Rodino Antitrust Improvements Work regarding 1976.
Higher Ponds also consistently bring technical and you will particular management help features to Higher Lakes Degree Firm pursuant so you can a guarantor services arrangement.
Nelnet’s expected purchase of Higher Ponds sets a couple of ED’s four top education loan servicers; others try Navient and you can FedLoan Repair.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos launched the lady intent 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 Master Doing work Manager regarding FSA commented:
“The fresh FSA Student loan Program represents the equivalent of being the prominent special-purpose individual financial globally. To switch support service, we’re going to use the finest suggestions and opportunities readily available and place these to work for Us americans having college loans. When FSA consumers change into the running and upkeep environment when you look at the 2019, they will certainly select a support system which is as the capable because the people regarding individual field. The effect could well be a far better experience for students – the users – and you may meaningful positives towards 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.
- New iA Institute
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 locate Great Lakes Instructional Loan Attributes
“We are bringing together 90 numerous years of business experience, and additionally bringing a good service so you’re able to federal and personal student loan individuals, loan providers, and universities. With your mutual tips, we are going to take a method containing best-in-category tech possibilities, proven functional prospective, and you may buyers experience innovations, to make a superior sense you to assures the consumers discover the greatest installment alternatives for its personal points. High Lakes and you will Nelnet have the opportunity to transform student financing repair getting countless consumers, delivering an everyday and you will unrivaled borrower feel additionally the greatest technology having education loan repair.”
Headquartered within the Madison, Wisconsin, Great Ponds as well as moms and dad connected group were permitting students access degree while the 1967. Today, Great Lakes features 1,800 employees. Great Ponds President Jeff Crosby told you,
“Now is a wonderful date to possess Higher Ponds and you will the staff, together with users we do have the possibility to suffice. High Ponds and you may Nelnet were leadership payday loans online Connecticut within the student loan maintenance for a long time by the targeting working perfection by trusting i can invariably perform far more in order to serve our very own people. Our very own philosophy and you may communities complement both i am also pretty sure we will be able to do significantly more adjust the newest lifetime of the individuals, loan providers, and universities we serve as a part of a comparable class.”
During 2009, High Lakes and you will Nelnet was in fact approved contracts so you’re able to services bodies-possessed figuratively speaking on the part of the fresh U.S. Service out-of Studies. These agreements are ready in order to end in .