« Today is a fantastic date to possess Higher Ponds and all of our employees, while the customers we do have the possible opportunity to suffice. Higher Ponds and you can Nelnet was basically leadership for the education loan repair for decades of the emphasizing working brilliance and by assuming we can always perform so much more to help you serve the people. Our very own thinking and you may organizations complement each other and i am confident i will be able to perform significantly more to evolve the new lifetime of the borrowers, loan providers, and you may colleges we serve as part of a comparable cluster. »
Nelnet and Great Lakes have also working together for pretty much couple of years growing a different, world class repair system having authorities-possessed student education loans as a result of a partnership
According to organization statement, Higher Ponds and you may Nelnet will maintain its line of labels, repair procedures, and you may operational teams, with Jeff Crosby best High Lakes as its President, each continues to compete for brand new education loan volume under their particular current price into the Department off Training. Over the years, common features teams often incorporate and assistance both Higher Ponds and you can Nelnet upkeep operations.
The latest servicing platform around advancement tend to incorporate modern tools in order to effortlessly size for further regularity, include customer information, and you can service increased borrower sense efforts. Brand new efficiencies attained because of the leveraging a single platform to own authorities-owned loans help hundreds of thousands much more individuals will provide Higher Ponds and you may Nelnet possibilities to invest in techniques to next augment borrower experience.
« Moving on on the development of the county-of-the-artwork loan repair program will allow us to deliver the most useful you’ll be able to feel to own individuals given that the communities become nearer together, » said Joe Popevis, chairman out of Nelnet Varied Alternatives (NDS). NDS possess Nelnet Servicing, Nelnet’s upkeep company, and will also individual High Lakes’ servicing providers. « So it deal increases our technical combination and you can venture, making all of us in the strongest status you’ll be able to to compliment the organization of your this new system. »
In regards to this new arrangement, Nelnet pays $150.0 mil from inside the cash for all of the outstanding inventory away from Higher Ponds. The order usually choose , at the mercy of vintage closing conditions, mostly the newest expiration otherwise termination of the relevant wishing attacks under the fresh Hart-Scott-Rodino Antitrust Developments Act from 1976.
Great Lakes will also always promote technology and you can particular management service properties to help you High Lakes Degree Agency pursuant to an effective guarantor functions contract.
Nelnet’s asked purchase of High Ponds pairs two of ED’s five number 1 student loan servicers; the others try Navient and you can FedLoan Maintenance.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos revealed the woman purpose 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 Master Working Manager out-of FSA commented:
“The new FSA Student loan System represents the equivalent of as being the biggest special-purpose consumer bank all over the world. To change customer support, we will use the most useful information and you will capabilities offered and place them to work for People in america having student education loans. Whenever FSA people transition to the brand new handling and you may servicing environment when you look at the 2019, they come across a customer service program payday loans online Tennessee that’s due to the fact in a position to due to the fact people about private market. The result is a significantly better sense for students – our consumers – and you may significant pros toward 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.
Nelnet’s requested acquisition of Higher Lakes pairs a couple of ED’s four primary student loan servicers; the remainder is Navient and you may FedLoan Repair.
« Moving forward into the growth of our very own condition-of-the-artwork financing upkeep platform usually enable me to supply the greatest you’ll be able to experience to possess consumers due to the fact all of our groups already been closer with her, » told you Joe Popevis, president out-of Nelnet Diversified Choices (NDS). NDS is the owner of Nelnet Servicing, Nelnet’s repair company, and also will individual Great Lakes’ repair team. « Which purchase accelerates our tech integration and you may collaboration, leaving all of us in the most powerful standing you can easily to enhance the development of one’s the fresh new platform. »
Nelnet and Great Lakes have also working together for nearly two years to cultivate another type of, world class repair program to own authorities-possessed college loans by way of a jv
According to providers statement, Higher Ponds and you will Nelnet will maintain its line of brands, servicing businesses, and you can operational groups, which have Jeff Crosby top Great Ponds as its Ceo, each will continue to compete for new student loan volume lower than their particular existing deal with the Service of Knowledge. Throughout the years, common features teams usually consist of and you will assistance the Higher Lakes and you will Nelnet repair operations.
Based in the Madison, Wisconsin, High Ponds as well as parent associated classification had been providing people availability advanced schooling since the 1967. Now, Great Lakes possess 1,800 professionals. Great Ponds Chief executive officer Jeff Crosby said,