Nelnet has acquired $1.9 billion worth of Federal Family Education Loan Program or FFELP consolidation loans from Greystone & Co.
The transaction gives the firm ownership interest in GCO SLIMS Trust-1 (SLIMS Trust) and company rights to the residual interest in GCO Education Loan Funding Trust-I (Trust-I).
A Nelnet press release stated that it will also become master servicer and administrator for Trust-I and administrator for the SLIMS trust. The firm expects the purchase to be immediately accretive to base net income.
With this transaction, Nelnet increases its student loan portfolio to more than $25 billion, and the added student loan and debt will be included in the company’s consolidated financial statements, according to the statement.