Underneath the terms of the latest contract, Nelnet pays $150.0 billion in the dollars for everyone of your the inventory out-of High Ponds. The transaction tend to choose , susceptible to vintage closure requirements, online payday loan Texas generally the newest termination otherwise termination of appropriate prepared periods significantly less than this new Hart-Scott-Rodino Antitrust Improvements Work of 1976.

Higher Ponds will continue to give technology and you can specific management support attributes to High Ponds Degree Corporation pursuant in order to an excellent guarantor features contract.

Nelnet’s asked purchase of High Lakes sets two of ED’s four number 1 student loan servicers; others was Navient and FedLoan Upkeep.

This transaction comes just a few months after U.S. Secretary of Education (ED) Betsy DeVos launched the woman 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 new Master Performing Manager out of FSA commented:

“The FSA Education loan System stands for the same as being the biggest special-purpose individual lender around the world. Adjust support service, we’ll grab the greatest info and you will opportunities available and set them to benefit Americans with college loans. Whenever FSA users transition with the the brand new running and you will upkeep ecosystem into the 2019, they will certainly discover a customer care system that’s because able to since any on the private business. The effect might possibly be a much better feel for college students – the users – and important professionals into the 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.

• The newest 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).

Nelnet to get Higher Lakes Educational Financing Characteristics

«We are joining together 90 numerous years of business sense, including providing a fantastic service to government and private education loan consumers, loan providers, and you can schools. With the help of our shared info, we are going to grab a method with most useful-in-classification tech solutions, shown working prospective, and you may customers sense innovations, to create an exceptional experience you to definitely ensures the individuals discover ideal fees alternatives for the private products. Higher Ponds and you can Nelnet actually have the opportunity to transform scholar mortgage maintenance to have countless individuals, taking a frequent and you will unrivaled borrower feel and also the better tech to possess student loan servicing.»

Headquartered from inside the Madison, Wisconsin, Great Ponds as well as mother affiliated group were providing college students availableness higher education once the 1967. Now, High Ponds keeps step one,800 group. Great Ponds Chief executive officer Jeff Crosby told you,

«Now is a wonderful time to own Higher Ponds and you will our employees, plus the consumers we possess the possible opportunity to serve. High Lakes and Nelnet have been management inside the education loan upkeep for a long time by the centering on working excellence by assuming we can still manage more in order to suffice all of our users. All of our values and you may groups match both i am also confident i will be able to perform far more to switch the brand new lifetime of one’s borrowers, lenders, and you will universities we act as an integral part of a comparable team.»

During 2009, Higher Lakes and you will Nelnet was indeed given contracts to services government-had student loans on the behalf of the brand new U.S. Agencies from Degree. This type of agreements are ready in order to end during the .