Nelnet to acquire High Lakes Academic Financing Properties

Nelnet to acquire High Lakes Academic Financing Properties

Nelnet and High Ponds have also working together for pretty much couple of years to cultivate a different, first class servicing program getting bodies-possessed student education loans due to a m&a. The fresh servicing system significantly less than invention tend to make use of modern technology so you can effectively measure for additional volume, cover buyers pointers, and you can help improved borrower experience efforts. The new efficiencies achieved because of the leverage just one platform to possess authorities-had fund support millions more individuals will give High Ponds and you will Nelnet chances to buy techniques to next increase borrower skills.

“Moving forward with the development of our very own condition-of-the-art financing repair platform will permit us to provide the greatest it is possible to experience getting individuals because the all of our organizations come better together,” said Joe Popevis, chairman regarding Nelnet Diversified Choice (NDS). NDS has Nelnet Maintenance, Nelnet’s upkeep company, and will also very own Higher Lakes’ repair business. “This transaction increases our very own tech consolidation and cooperation, leaving us regarding strongest standing you are able to to compliment the organization of one’s this new program.”

Under the regards to the brand new arrangement, Nelnet pays $150.0 mil for the cash for everybody of the a fantastic stock out of High Ponds. The transaction tend to settle on , susceptible to typical Alaska payday loans closing criteria, primarily the newest termination otherwise termination of appropriate wishing attacks around the fresh new Hart-Scott-Rodino Antitrust Improvements Work away from 1976.

Great Ponds will additionally continue to provide tech and you will certain management support characteristics in order to High Lakes Higher education Company pursuant in order to an effective guarantor qualities agreement.

Nelnet’s requested acquisition of Great Ponds sets a couple of ED’s four number one student loan servicers; the others are Navient and you will FedLoan Servicing.

This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos launched her 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 Master Doing work Manager off FSA commented:

“The latest FSA Student loan System is short for the equivalent of as the prominent special purpose individual bank all over the world. Adjust customer support, we’re going to grab the ideal details and you will opportunities available and put these to work for Us citizens that have college loans. Whenever FSA consumers change to the the fresh control and you can repair ecosystem during the 2019, they discover a customer service system that is given that able to due to the fact one from the individual field. The result would-be a better feel for students – the people – and meaningful masters on 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.

Nelnet to acquire Higher Ponds Instructional Financing Features

  • The 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).

“The audience is joining together 90 several years of world experience, and additionally providing a fantastic services to help you federal and private student loan consumers, lenders, and you may universities. With this joint resources, we shall bring an approach with which has most readily useful-in-classification technical solutions, shown functional opportunities, and customer experience designs, to help make a superior sense one assures the borrowers get the ideal installment options for the individual issues. Higher Ponds and you may Nelnet currently have the opportunity to change scholar loan maintenance to have many consumers, providing a typical and you can unrivaled debtor experience in addition to ideal technology to possess student loan upkeep.”