Nelnet to locate Higher Lakes Informative Loan Functions Leave a comment

Nelnet to locate Higher Lakes Informative Loan Functions

This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos revealed this lady 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, brand new Captain Functioning Manager from FSA commented:

“The FSA Education loan Program is short for roughly the same as as the premier special purpose user financial around the world. To alter customer care, we’re going to make the finest details and you may capabilities available and place these to work with People in the us that have college loans. When FSA users changeover to your the latest processing and you can servicing environment in the 2019, they are going to look for a support system which is because the able to as people throughout the private markets. The result was a significantly better experience for college students – the customers – online installment loans Tennessee and you can meaningful benefits to 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.

  • 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).

“Our company is bringing together 90 many years of globe feel, plus bringing a good service to help you federal and personal student loan borrowers, loan providers, and you may universities. With your joint tips, we will get a method that has better-in-classification tech systems, shown operational capabilities, and you will customer feel designs, to create an excellent experience one guarantees most of the consumers discover the best payment choices for its individual situations. Higher Lakes and you may Nelnet currently have the chance to transform beginner mortgage maintenance to have countless consumers, delivering a frequent and unrivaled debtor sense as well as the finest technical for student loan upkeep.”

Based from inside the Madison, Wisconsin, Higher Lakes and its moms and dad associated classification was basically helping college students availableness higher education while the 1967. Now, Higher Lakes keeps step 1,800 personnel. Higher Ponds Ceo Jeff Crosby said,

“Today is a superb day to own Great Lakes and you will our staff, together with users we possess the opportunity to serve. Great Lakes and you will Nelnet was in fact frontrunners from inside the student loan maintenance for many years by emphasizing working excellence by believing we can always perform way more in order to suffice the people. The opinions and you will organizations match one another and i am sure we are able to perform more to change brand new lifetime of your own individuals, lenders, and you will schools we act as part of a similar class.”

Nelnet locate High Ponds Academic Loan Properties

Last year, Higher Lakes and you may Nelnet had been issued agreements to services regulators-had figuratively speaking with respect to the newest U.S. Service from Training. These types of contracts are ready to end for the .

Depending on the team statement, Great Ponds and Nelnet will keep their collection of brands, maintenance procedures, and you may operational organizations, with Jeff Crosby best High Lakes as its Ceo, each will continue to participate for brand new student loan volume below the particular current bargain into Agencies off Training. Through the years, shared attributes organizations commonly put and service both the Higher Ponds and Nelnet servicing businesses.

Nelnet and High Lakes have also collaborating for almost a couple of years growing another, first class maintenance system to own authorities-possessed college loans thanks to a jv. The latest servicing program around invention will utilize today’s technology so you can effectively level for further regularity, manage customer advice, and assistance improved borrower experience attempts. Brand new efficiencies gathered from the leveraging a single program to possess regulators-possessed fund supporting millions even more borrowers will offer High Ponds and you can Nelnet possibilities to put money into methods to further boost borrower experience.