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Nelnet to find Great Ponds Instructional Loan Services

Nelnet to find Great Ponds Instructional Loan Services

This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos launched their 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 Chief Working Officer out of FSA commented:

“The new FSA Education loan System stands for roughly the same as as being the largest special purpose user lender around the globe. Adjust customer support, we shall use the best ideas and you will capabilities offered and set these to work with People in america that have student education loans. Whenever FSA customers transition towards the the new control and maintenance environment for the 2019, they’ll select a customer care program which is just like the capable as the people in the private field. The outcome would be a much better experience for students – the consumers – and you will significant benefits 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.

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’re bringing together 90 numerous years of community feel, along with providing outstanding solution in order to government and personal education loan individuals, loan providers, and you will colleges. With these combined information, we shall take a method with best-in-classification technology systems, proven operational opportunities, and customer experience designs, to produce an excellent experience you to assures all individuals get the ideal fees options for their individual products. High Ponds and you can Nelnet now have the ability to alter student mortgage maintenance to possess scores of consumers, delivering a frequent and you may unrivaled borrower experience as well as the best technical having education loan upkeep.”

Headquartered from inside the Madison, Wisconsin, Great Ponds and its particular mother associated category have been helping youngsters availability degree just like the 1967. Today, High Ponds keeps step one,800 employees. Great Lakes Ceo Jeff Crosby told you,

“Today is a great time to own High Lakes and you can the team, and customers we do have the chance to suffice. Higher Lakes and Nelnet was frontrunners into the education loan upkeep for a long time by the emphasizing operational perfection by thinking we can still would alot more so you’re able to suffice the users. Our viewpoints and you can teams fit each other and i am sure we are capable of a great deal more to improve the brand new life of one’s borrowers, lenders, and you can colleges we serve as an integral part of a similar team.”

Nelnet to obtain High Lakes Academic Loan Functions

Last year, High Lakes and you can Nelnet was basically provided deals so you can provider government-had student loans with respect to the brand new You.S. Company out of Degree. These types of agreements are prepared in order to expire for the .

According to the organization statement, Great Lakes and you will Nelnet will maintain the collection of brands, repair surgery, and you will operational teams, with Jeff Crosby top High Ponds as the Ceo, and each will continue to participate for brand new student loan volume under the respective established price for the Department of Training. Throughout the years, mutual properties groups often put and you can service the High Ponds and you can Nelnet maintenance businesses.

Nelnet and you will High Lakes have also been collaborating for nearly two years growing another, world-class repair program getting regulators-had figuratively speaking due to a m&a. The latest maintenance system lower than invention usually make use of modern technology so you can efficiently scale for further regularity, manage consumer pointers, and you can service enhanced debtor feel efforts. The brand new efficiencies gained of the leveraging just one system getting regulators-had finance support millions way more borrowers will give High Ponds and you may Nelnet chances to invest in ways to after that improve debtor enjoy.

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