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Nelnet discover Great Ponds Instructional Financing Qualities

Nelnet discover Great Ponds Instructional Financing Qualities

Underneath the terms of the fresh new arrangement, Nelnet pays $150.0 million when you look at the bucks for everyone of your own a great inventory out of High Ponds. The transaction commonly decide on , susceptible to conventional closure conditions, mainly the termination otherwise termination of your own relevant waiting episodes lower than directlenderloans.org/installment-loans-mi the fresh new Hart-Scott-Rodino Antitrust Advancements Work off 1976.

High Ponds also still provide tech and you can particular administrative assistance attributes in order to Higher Ponds Higher education Corporation pursuant so you can good guarantor characteristics arrangement.

Nelnet’s asked acquisition of High Ponds sets two of ED’s four no. 1 education loan servicers; the rest try Navient and you may FedLoan Repair.

This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos announced the woman 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, new Master Functioning Officer off FSA commented:

“The FSA Education loan Program signifies the equivalent of as being the premier special-purpose user bank in the world. Adjust customer service, we are going to do the top suggestions and you may prospective offered and put these to work with People in america that have student loans. When FSA users change to your this new processing and you may servicing ecosystem in the 2019, they’re going to find a customer care program which is as the in a position to as the any on personal market. The outcome will be a far better sense for students – the consumers – and you can meaningful professionals 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.

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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 acquire Higher Ponds Informative Financing Services

“We have been bringing together ninety years of business feel, in addition to taking an excellent service to government and personal student loan individuals, lenders, and you can schools. With the help of our combined info, we’ll capture a method which includes better-in-class technology options, demonstrated working capabilities, and customer sense innovations, to create an exceptional sense one to assurances all borrowers select the most useful installment choices for the personal facts. Higher Lakes and you will Nelnet currently have the opportunity to change beginner financing servicing having many consumers, delivering a frequent and you can unrivaled debtor feel as well as the ideal technology for education loan repair.”

Based in Madison, Wisconsin, High Lakes and its particular mother associated classification was in fact providing students availableness higher education as 1967. Now, Higher Lakes have step 1,800 group. Great Lakes Ceo Jeff Crosby told you,

“Today is an excellent time to possess Higher Ponds and you may our teams, together with consumers we possess the possible opportunity to serve. Great Lakes and Nelnet were frontrunners when you look at the education loan repair for many years because of the centering on functional perfection by believing i can still perform way more in order to serve our very own users. The viewpoints and you can groups match each other and i am pretty sure i will be capable of significantly more to switch new existence of the individuals, lenders, and colleges we serve as part of an equivalent party.”

In 2009, Great Lakes and you can Nelnet were issued contracts so you’re able to solution authorities-had student loans on the part of the U.S. Service out-of Studies. This type of deals are prepared so you’re able to expire from inside the .

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