“Today is a fantastic big date getting High Lakes and you can all of our group, in addition to customers we do have the possibility to suffice. Higher Ponds and Nelnet have been frontrunners into the education loan repair for many years by the focusing on functional perfection and also by assuming we can invariably perform significantly more in order to suffice the customers. Our very own philosophy and you will teams fit each other i am also confident i will be able to do a lot more to evolve the newest lives of one’s borrowers, lenders, and you will schools i act as an integral part of an equivalent team.”
Nelnet and you can Great Ponds have also been working together for pretty much 24 months growing a different, world class maintenance program to possess authorities-owned student loans compliment of a jv
With respect to the business statement, High Lakes and you may Nelnet will maintain the distinct brands, upkeep operations, and operational communities, that have Jeff Crosby best Higher Lakes as its President, each will continue to vie for brand new student loan volume below the respective existing package with the Company of Knowledge. Through the years, mutual attributes groups often feature and you may help both Great Lakes and Nelnet maintenance operations.
The upkeep program lower than advancement usually need modern technology to efficiently level for additional frequency, cover customer advice, and you may assistance increased borrower sense initiatives. Brand new efficiencies gathered because of the leveraging one system to have bodies-possessed loans supporting many even more consumers deliver High Ponds and you can Nelnet possibilities to invest in techniques to subsequent increase debtor experiences.
“Progressing towards the growth of the condition-of-the-art financing repair program commonly permit me to provide the best you can feel to possess borrowers just like the our organizations come closer with her,” told you Joe Popevis, chairman of Nelnet Varied Solutions (NDS). NDS possess Nelnet Upkeep, Nelnet’s repair team, and also will individual High Lakes’ upkeep organization. “It purchase boosts the technology combination and collaboration, leaving us on strongest position you can to compliment the growth of your the latest system.”
Underneath the terms of this new contract, Nelnet pays $150.0 mil in the bucks for all of one’s outstanding stock out of Higher Ponds. The order often settle on , subject to traditional closure requirements, mainly new termination otherwise termination of your relevant waiting episodes below the fresh Hart-Scott-Rodino Antitrust Developments Work away from 1976.
Higher Ponds will always bring technical and certain administrative service attributes to Higher Lakes Higher education Company pursuant so you can a guarantor characteristics agreement.
Nelnet’s asked acquisition of High Lakes pairs a couple of ED’s four top student loan servicers; the remainder are Navient and FedLoan Repair.
This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos revealed the girl 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, new Head Doing work Officer away from FSA commented:
“The brand new FSA Education loan Program is short for the same as being the prominent special-purpose individual lender in the world. To switch customer support, we’ll do the top info and you will capabilities readily available and put them to benefit Americans having student loans. Whenever FSA people changeover towards the fresh processing and you may upkeep environment during the 2019, they select a support system that’s just like the in a position to as the people in the private industry. The effect could be an improved experience for college students – our very own users – and you may important positives 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.
Nelnet’s expected acquisition of High Lakes pairs a couple of ED’s four top https://paydayloansonlinedirect.com/installment-loans-sc/ student loan servicers; the remainder is Navient and you will FedLoan Upkeep.
“Moving forward towards the growth of our very own county-of-the-art mortgage maintenance system will permit us to supply the top possible experience for individuals as the the organizations been closer together,” told you Joe Popevis, chairman from Nelnet Diversified Choices (NDS). NDS has Nelnet Repair, Nelnet’s repair business, and also will individual Great Lakes’ servicing providers. “This deal accelerates the tech combination and collaboration, leaving us on the most powerful position it is possible to to compliment the organization of one’s the fresh new system.”
Nelnet and you will Higher Ponds are also collaborating for pretty much two years to develop a separate, top notch maintenance program to have regulators-had college loans using a partnership
According to providers announcement, Great Lakes and Nelnet will maintain its line of brands, servicing surgery, and you will functional organizations, that have Jeff Crosby best Higher Lakes as the President, and every will continue to contend for new education loan frequency under its particular established price towards Service away from Knowledge. Over time, common functions communities commonly include and assistance both Higher Lakes and you may Nelnet repair businesses.
Headquartered when you look at the Madison, Wisconsin, Great Lakes and its father or mother associated classification was in fact providing children supply higher education because 1967. Today, High Ponds keeps step 1,800 employees. Higher Ponds Ceo Jeff Crosby told you,