This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos revealed the lady 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 fresh Head Doing work Officer off FSA commented:
“The newest FSA Education loan Program represents the same as as the premier special-purpose consumer financial international. To evolve customer support, we’re going to use the top records and you can opportunities offered and put these to work for Americans having college loans. Whenever FSA consumers transition into the fresh new running and you may upkeep ecosystem inside 2019, they will certainly get a hold of a customer care program that is just like the able to since people regarding the private industry. The end result will be an improved experience for students – our consumers – and you will significant experts 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.
- The fresh 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).
“We have been joining together ninety numerous years of world feel, including getting a great solution so you can government and personal education loan consumers, loan providers, and you may colleges. With this joint resources, we shall just take an approach that has had most useful-in-classification tech solutions, shown operational capabilities, and customer feel innovations, to produce an exceptional sense one to guarantees most of the borrowers get the ideal repayment choices for its personal facts. Great Lakes and you may Nelnet have the chance to transform beginner mortgage upkeep for scores of consumers, getting an everyday and unmatched debtor experience in addition to better technical having education loan servicing.”
Headquartered inside the Madison, Wisconsin, Higher Ponds and its parent connected class were providing youngsters supply higher education because 1967. Now, Higher Lakes possess step 1,800 personnel. Great Ponds Chief executive officer Jeff Crosby said,
“Today is a superb date getting Higher Ponds and our professionals, additionally the consumers we have the opportunity to suffice. High Ponds and Nelnet were leadership in student https://paydayloansonlinedirect.com/installment-loans-oh/ loan servicing for decades from the concentrating on operational brilliance and also by thinking i can still manage alot more to help you suffice our users. The viewpoints and you will teams complement each other and i am pretty sure i will be able to perform so much more to switch new lifestyle of your own borrowers, loan providers, and you may schools i act as part of a similar class.”
Nelnet to get Great Ponds Instructional Financing Services
Last year, High Ponds and you may Nelnet was given deals so you’re able to solution bodies-possessed student education loans for the U.S. Company off Training. Such contracts are set so you can expire in the .
With regards to the company statement, Higher Ponds and Nelnet will maintain their line of brands, servicing procedures, and you may operational organizations, with Jeff Crosby best Great Ponds as the Chief executive officer, and each continues to compete for brand new education loan frequency under the particular current offer toward Agencies out of Training. Through the years, mutual characteristics communities have a tendency to include and you will service the High Ponds and you will Nelnet maintenance procedures.
Nelnet and Great Lakes are also working together for nearly two years to cultivate an alternate, top notch servicing program getting regulators-owned figuratively speaking by way of a m&a. The newest servicing platform less than development will use today’s technology in order to efficiently measure for further frequency, include customer advice, and you may assistance improved borrower feel attempts. The newest efficiencies achieved because of the leverage just one system for regulators-possessed financing supporting many more borrowers will offer Great Lakes and you will Nelnet chances to invest in techniques to further increase borrower knowledge.
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