“Now is a great go out to own Higher Ponds and you can all of our teams, as well as the people we possess the opportunity to suffice. Great Lakes and you may Nelnet was leadership for the education loan repair for a long time of the targeting functional perfection and also by trusting i can always carry out way more to help you suffice our customers. All of our opinions and you may communities fit both and i am sure we are able to do a lot more adjust this new life of one’s individuals, loan providers, and you can universities we act as part of a similar people.”
Nelnet and you can Great Lakes have also been working together for pretty much 24 months growing a special, world class maintenance program getting regulators-possessed figuratively speaking owing to a joint venture
According to the business statement, High Lakes and you will Nelnet will keep the collection of brands, upkeep functions, and you will operational teams, having Jeff Crosby leading Great Ponds as its President, and every will continue to vie for new education loan volume not installment loans Mississippi as much as the respective existing bargain on the Department of Studies. Over time, mutual attributes communities usually integrate and help both the High Ponds and Nelnet maintenance businesses.
New maintenance system less than innovation tend to use today’s technology so you’re able to effectively measure for further frequency, include customer information, and you will service increased debtor feel effort. The brand new efficiencies attained of the leveraging an individual system to possess bodies-possessed finance help many even more individuals gives High Lakes and you will Nelnet chances to purchase methods to next enhance borrower skills.
“Progressing for the development of our very own county-of-the-artwork loan upkeep system tend to permit me to supply the finest you are able to feel getting individuals while the the groups already been nearer with her,” told you Joe Popevis, president from Nelnet Varied Selection (NDS). NDS has Nelnet Maintenance, Nelnet’s maintenance organization, and will also very own Great Lakes’ servicing company. “This purchase increases the technical combination and you can venture, leaving you on most powerful status you’ll be able to to compliment the organization of your own the brand new system.”
Beneath the regards to the latest agreement, Nelnet pays $150.0 mil inside the bucks for everyone of your own a good stock away from High Ponds. The transaction have a tendency to settle on , at the mercy of typical closing criteria, primarily brand new expiration or termination of your own appropriate wishing symptoms not as much as the newest Hart-Scott-Rodino Antitrust Developments Work of 1976.
High Lakes will additionally consistently render technology and specific management service functions so you can High Lakes Degree Agency pursuant so you’re able to an excellent guarantor functions agreement.
Nelnet’s asked acquisition of High Lakes pairs a couple of ED’s five primary student loan servicers; others was Navient and you will FedLoan Servicing.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos launched the woman 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 Captain Operating Officer from FSA commented:
“The brand new FSA Student loan System signifies the same as as the biggest special-purpose consumer financial around the globe. Adjust customer service, we’ll make the finest ideas and you may possibilities offered and put them to benefit Us americans having student loans. Whenever FSA people changeover on brand new handling and you will maintenance ecosystem for the 2019, they come across a support system which is just like the in a position to while the one from the private industry. The outcome could well be an improved experience for college students – our customers – and meaningful advantages 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.
Nelnet’s requested acquisition of High Ponds sets two of ED’s five no. 1 student loan servicers; the rest was Navient and you can FedLoan Servicing.
“Progressing into growth of our very own county-of-the-ways mortgage repair system commonly enable me to provide the most useful you’ll be able to feel to have consumers because the the organizations started closer together,” said Joe Popevis, president out-of Nelnet Varied Choice (NDS). NDS possesses Nelnet Servicing, Nelnet’s servicing business, and also will individual Higher Lakes’ upkeep company. “It purchase increases our very own technology combination and you can cooperation, leaving united states on the strongest status you’ll to enhance the organization of your own the latest program.”
Nelnet and you may High Lakes are also working together for nearly 24 months growing a different, world class servicing system getting regulators-possessed student loans owing to a joint venture
With respect to the providers announcement, Great Lakes and Nelnet will keep the collection of labels, maintenance operations, and you will working groups, that have Jeff Crosby leading Great Lakes as the Chief executive officer, and every continues to compete for brand new student loan regularity lower than its respective existing package on the Department away from Knowledge. Throughout the years, shared features organizations often put and you may service both Great Ponds and Nelnet servicing procedures.
Based when you look at the Madison, Wisconsin, High Ponds and its moms and dad associated class was in fact providing pupils accessibility advanced schooling just like the 1967. Today, Higher Ponds keeps step one,800 teams. High Lakes President Jeff Crosby said,