This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos launched the woman 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 installment loan Alaska, the brand new Head Operating Officer of FSA commented:
“The fresh FSA Student loan Program represents the equivalent of as being the premier special-purpose user bank all over the world. To evolve customer care, we shall use the top suggestions and capabilities available and set these to work for Us citizens that have college loans. When FSA customers change on brand new control and you will repair ecosystem from inside the 2019, they will come across a customer support program which is because able to as people throughout the individual field. The result might possibly be a much 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
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 bringing together 90 many years of world experience, along with delivering a good provider to help you government and personal student loan consumers, loan providers, and you may universities. With your combined tips, we’re going to bring a strategy containing ideal-in-group technology assistance, shown working opportunities, and customer sense innovations, to manufacture an excellent experience one to guarantees every consumers discover top fees alternatives for the personal affairs. Higher Lakes and you can Nelnet actually have the chance to change student mortgage maintenance to own scores of consumers, taking a frequent and you may unrivaled debtor experience while the better technology to have student loan servicing.”
Headquartered in Madison, Wisconsin, High Lakes and its own father or mother associated group have been enabling college students availableness degree since the 1967. Today, Great Lakes have step one,800 team. Great Ponds Chief executive officer Jeff Crosby said,
“Now is an excellent time to have Higher Lakes and you can the group, and the users we have the opportunity to serve. Higher Lakes and Nelnet was basically leaders during the education loan maintenance for a long time by emphasizing working perfection and by assuming i can always would more to suffice our very own people. All of our thinking and you will groups complement one another i am also pretty sure i will be able to perform a great deal more to evolve brand new lifetime of one’s consumers, loan providers, and you can colleges i serve as a part of a comparable group.”
Nelnet to acquire Great Lakes Educational Loan Qualities
In ’09, High Ponds and you may Nelnet were given deals to solution regulators-owned student education loans on behalf of the brand new You.S. Department regarding Studies. This type of contracts are ready so you can expire into the .
According to the business statement, High Ponds and Nelnet will maintain the line of labels, servicing surgery, and you can operational groups, that have Jeff Crosby leading Great Lakes as its Ceo, and every will continue to contend for brand new student loan frequency less than its particular present package towards the Agencies out of Degree. Through the years, common attributes communities tend to consist of and you will support both the Higher Ponds and you may Nelnet upkeep procedures.
Nelnet and you will Higher Ponds are also working together for pretty much 2 yrs to grow a special, first class servicing system to possess authorities-had student education loans because of a joint venture. The new repair program below innovation usually utilize today’s technology to effortlessly measure for further regularity, protect customer information, and you may service enhanced debtor feel efforts. The latest efficiencies gathered by leveraging a single system getting government-possessed loans support hundreds of thousands a great deal more consumers will give Great Ponds and you will Nelnet possibilities to invest in techniques to then augment debtor skills.