This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos launched her 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 newest Chief Doing work Administrator off FSA commented:
“The latest FSA Student loan System signifies the same as as the prominent special-purpose consumer bank in the world. To change support service, we will use the ideal ideas and you will possibilities available and set them to work with People in the us having figuratively speaking. Whenever FSA users change towards the new running and servicing environment during the 2019, might select a customer support system that’s while the in a position to because the one regarding the individual business. The outcome will be an improved experience for college students – our customers – and you will meaningful advantages on 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.
- The 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).
“We have been bringing together ninety numerous years of industry feel, also getting outstanding provider in order to federal and personal education loan consumers, loan providers, and you can schools. With your joint information, we are going to capture a strategy which includes finest-in-classification tech systems, confirmed functional potential, and you can customer experience innovations, to manufacture an excellent experience you to definitely ensures all the individuals discover the top cost choices for its personal products. Great Ponds and you will Nelnet actually have instalment loans Mississippi the chance to change beginner loan repair for scores of individuals, providing a consistent and you can unrivaled debtor sense plus the finest technology to own student loan maintenance.”
Based during the Madison, Wisconsin, Higher Ponds and its moms and dad associated class had been helping people accessibility degree since 1967. Now, Higher Lakes possess step 1,800 group. Great Ponds Ceo Jeff Crosby told you,
“Now is an excellent day to own High Ponds and you may our employees, as well as the users we do have the possibility to suffice. Higher Lakes and you will Nelnet had been management when you look at the education loan upkeep for decades from the emphasizing working perfection and by thinking we can always would a lot more so you can suffice all of our consumers. The thinking and you will groups fit both and i am confident we will be capable of a lot more to change new lives of individuals, lenders, and you may universities we act as an integral part of an identical people.”
Nelnet discover Great Lakes Educational Loan Attributes
In ’09, Great Ponds and Nelnet had been provided agreements in order to provider bodies-had student loans on the part of new You.S. Agency of Studies. These deals are ready to help you end into the .
According to the team announcement, Great Ponds and you will Nelnet will keep their type of brands, repair functions, and you can working communities, which have Jeff Crosby best Higher Lakes as the Ceo, each continues to contend for brand new student loan regularity less than the respective current deal to the Agency away from Knowledge. Over time, common properties groups often add and you may support both the High Ponds and you may Nelnet maintenance businesses.
Nelnet and you will Great Lakes are also collaborating for pretty much 24 months to cultivate a separate, top notch servicing program to own government-possessed student education loans owing to a joint venture. The fresh new repair system significantly less than invention will make use of modern technology so you can effortlessly scale for additional regularity, include buyers recommendations, and you may service enhanced borrower experience initiatives. New efficiencies achieved of the leveraging a single system to own government-owned loans supporting many a lot more individuals can give Higher Lakes and you will Nelnet possibilities to buy techniques to further promote borrower feel.