According to the terms of this new arrangement, Nelnet will pay $150.0 billion inside cash for everyone of https://directlenderloans.org/installment-loans-vt/ your a fantastic inventory out-of Great Ponds. Your order usually choose , subject to vintage closure criteria, generally new termination otherwise cancellation of your relevant waiting periods around the fresh Hart-Scott-Rodino Antitrust Developments Work regarding 1976.
High Ponds will continue to give tech and certain management assistance services so you’re able to High Ponds Advanced schooling Business pursuant so you’re able to a good guarantor characteristics contract.
Nelnet’s questioned acquisition of Great Lakes sets two of ED’s five no. 1 student loan servicers; the others try Navient and you may FedLoan Maintenance.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos announced the girl 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 fresh Captain Performing Administrator away from FSA commented:
“Brand new FSA Student loan System stands for the equivalent of being the prominent special-purpose individual financial international. To switch support service, we are going to make most useful info and you may opportunities readily available and set these to work for Americans with figuratively speaking. When FSA consumers changeover on the running and you will repair ecosystem when you look at the 2019, they will certainly discover a customer care program which is because able to given that one on the individual field. The result might be a better experience for college students – all of our consumers – and you can important pros towards 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.
- This new 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 locate Higher Ponds Educational Financing Services
“We’re joining together 90 several years of world feel, along with providing a fantastic provider to government and private student loan consumers, lenders, and you can universities. With this shared resources, we will get a method which has had top-in-category technology systems, shown functional capabilities, and you will customers feel designs, to manufacture an exceptional feel you to definitely assures all individuals discover the top payment alternatives for the personal items. Higher Lakes and Nelnet actually have the chance to alter scholar loan maintenance to possess many consumers, delivering a typical and you can unrivaled debtor sense as well as the most useful tech to possess education loan servicing.”
Based within the Madison, Wisconsin, High Ponds as well as mother associated category was in fact enabling pupils access degree as 1967. Now, Great Lakes possess step one,800 professionals. Higher Lakes Ceo Jeff Crosby told you,
“Now is an excellent go out getting Great Lakes and you can our teams, in addition to customers we possess the chance to serve. Great Ponds and you may Nelnet was indeed management inside the student loan servicing for a long time of the emphasizing functional brilliance by assuming we can invariably create much more in order to serve our users. Our very own thinking and you will groups fit one another and i am sure i will be able to perform a great deal more to evolve the brand new lifetime of the consumers, loan providers, and you will schools i act as a part of a similar people.”
In ’09, High Ponds and you will Nelnet have been given deals so you can solution government-had student education loans on behalf of the new You.S. Company of Education. Such contracts are ready in order to end during the .