Within the terms of the new agreement, Nelnet pays $150.0 million within the dollars for everyone of the outstanding stock out of High Lakes. Your order commonly settle on , subject to customary closure conditions, mostly the new expiration or termination of appropriate wishing periods less than the latest Hart-Scott-Rodino Antitrust Improvements Operate from 1976.
High Ponds will additionally consistently render tech and you may particular administrative help services so you can High Lakes Advanced schooling Enterprise pursuant so you’re able to an effective guarantor properties arrangement.
Nelnet’s requested acquisition of Great Ponds pairs two of ED’s four top education loan servicers; others try Navient and you will FedLoan Repair.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos announced the girl 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 brand new Head Doing work Manager away from FSA commented:
“The new FSA Education loan System stands for roughly the same as being the prominent special purpose user bank in the world. Adjust customer service, we’re going to make top information and you will potential available and set these to work for People in the us that have figuratively speaking. When FSA people transition with the the newest control and you may repair ecosystem in the 2019, might get a hold of a support system that’s since in a position to as people regarding the personal field. The result was a better feel for students – our consumers – and you will significant professionals to 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.
- The latest 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 track down Great Ponds Educational Loan Services
“Our company is bringing together 90 several years of community sense, including providing a fantastic services in order to federal and private student loan consumers, loan providers, and schools. With our shared information, we shall bring a strategy that features ideal-in-class technology options, demonstrated working capabilities, and you will consumer experience innovations, to manufacture an excellent experience you to definitely ensures all of the individuals find the most readily useful cost choices for the personal points. High Lakes and you can Nelnet now have the opportunity to changes student financing repair getting scores of individuals, taking a routine and you will unrivaled debtor experience in addition to better technical to possess education loan upkeep.”
Based within the Madison, Wisconsin, High Lakes as well as mother or father affiliated classification was indeed helping people supply advanced schooling since 1967. Now https://paydayloansonlinedirect.com/payday-loans-ok/, Great Lakes provides step 1,800 professionals. Great Ponds Chief executive officer Jeff Crosby told you,
“Today is a fantastic go out getting Great Ponds and you may all of our group, plus the customers we do have the possibility to serve. High Ponds and you may Nelnet was indeed frontrunners into the student loan upkeep for many years by the concentrating on operational brilliance by believing i can still perform a whole lot more so you can suffice all of our customers. The opinions and you can groups complement one another and i am convinced we will be able to do even more adjust the fresh life of individuals, loan providers, and you may colleges we serve as part of an equivalent cluster.”
Last year, Higher Lakes and you will Nelnet was in fact given agreements to solution authorities-had student loans on the behalf of the latest You.S. Agencies out of Degree. These contracts are prepared to help you end in the .
