This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos launched their 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 latest Head Doing work Administrator of FSA commented:
“The fresh new FSA Student loan System stands for the same as as the premier special purpose individual bank in the world. To switch customer care, we’re going to grab the most useful ideas and you will capabilities offered and set these to work for Americans with student loans. When FSA customers transition on the latest control and you may servicing ecosystem inside the 2019, might see a customer care program which is once the in a position to as any regarding personal sector. The end result would be a far better experience for college students – the people – and you will meaningful benefits into 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 brand 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).
“We’re joining together ninety numerous years of globe sense, and additionally delivering a good solution so you can government and personal education loan individuals, loan providers, and you will schools. With the help of our mutual tips, we are going to bring a method that has most useful-in-category tech expertise, confirmed working opportunities, and you can customer sense designs, in order to make an exceptional feel one assures all the individuals get the top fees choices for the private activities. Higher Ponds and you will Nelnet have the chance to transform college student financing upkeep to own an incredible number of consumers, providing an everyday and you can unmatched debtor sense together with most useful technology to possess student loan repair.”
Headquartered during the Madison, Wisconsin, Great Ponds as well as father or mother connected class was helping people availability advanced schooling since 1967. Today, Great Lakes keeps step one,800 teams. High Ponds Ceo Jeff Crosby told you,
“Now is a wonderful big date to own Great Lakes and you can the staff, and also the users we have the opportunity to serve. Higher Lakes and you can Nelnet was leadership in the education loan maintenance for a long time because of the focusing on working excellence and by believing we can always manage far more to serve our very own people. Our very own thinking and you will teams fit both and i am convinced we are capable of even more to alter the brand new existence of your own consumers, lenders, and you may colleges we act as part of a similar party.”
Nelnet to find High Ponds Instructional Mortgage Features
In ’09, Great Ponds and you may Nelnet was issued contracts to services government-had college loans for brand new U.S. Institution regarding Education. These deals are set in order to end when you look at the .
Depending on the business announcement, Great Ponds and you can Nelnet will keep their line of brands, repair functions, and you may functional groups, having Jeff Crosby best Great Lakes as the Chief executive officer, each continues to compete for new student loan regularity not as much as their particular existing contract on the Institution of Education. Over time, mutual attributes groups usually put and you may support both Great Lakes and you can Nelnet servicing procedures.
Nelnet and you will Great Lakes are also collaborating for title loans in West Virginia nearly a couple of years to develop a unique, first class servicing system getting regulators-had student education loans as a result of a m&a. The brand new maintenance platform under invention often utilize today’s technology so you can effortlessly measure for additional frequency, cover customers recommendations, and you can help enhanced borrower feel efforts. This new efficiencies gathered from the leveraging one platform to have authorities-possessed fund supporting hundreds of thousands much more individuals will offer Great Ponds and you can Nelnet possibilities to put money into ways to then augment borrower feel.