Conduent (ACS) Education: What Is It?

Conduent (ACS) Education: What Is It?

Campus-based, private, and federal student loans were all serviced by Conduent Education Services, formerly known as ACS Education Services. On September 1, 2019, it stopped operating, and all of its loans were given to new loan servicers.

Definition and Examples of Conduent Education Ownership

Over the years, Conduent has undergone numerous name changes and ownership swaps. Affiliated Computer Services (ACS), which included the student loan division ACS Education Services, commonly known as ACS Education Solutions or ACS Student Loans, was bought by Xerox in 2009. At the time of this acquisition, ACS had a contract with the U.S. Department of Education to service federal student loans.

In 2012, the Department of Education declined to extend ACS’s servicing agreement. Other federal student loan servicers received the direct loans that ACS had been managing. Some Federal Family Education Loans (FFEL), Perkins Loans, and private student loans were still being serviced by ACS Education Services.

“Servicing” involves loan consolidation, billing, payment processing, processing requests for deferment or forbearance, and assisting borrowers with account adjustments including changing repayment plans.

How the Termination of Conduent Loans Worked

The Massachusetts Attorney General claimed that ACS Education Services had handled borrowers’ requests for income-based repayment plans improperly during an inquiry that was started in 2015. The debtors would have been able to get cheaper monthly payments as a result. Additionally, according to a 2016 statement from the AG, the servicer “engaged in harassing debt collection techniques,” with some borrowers receiving an excessive number of phone calls.

As a result of this inquiry, ACS consented to pay Massachusetts fines totaling $2.4 million. Additionally, it consented to put a halt to unethical and abusive debt collection techniques and to take corrective actions, like crediting improperly assessed late fees.

In 2014 and 2015, the U.S. Consumer Financial Protection Bureau (CFPB) looked into ACS. Some student loan accounts weren’t properly updated, it was discovered. The main balances were off. The CFPB claimed that ACS lacked the necessary infrastructure and staff to handle repayment adjustments like deferments, forbearances, and income-based repayment programs.

2015 saw an agreement on a remedy plan between ACS and the CFPB. It includes appropriately modifying pertinent loans or compensating debtors. For the mistakes, the CFPB penalized ACS $3.9 million. According to Conduent, “the corporation never admitted nor denied liability.”

In 2017, Xerox divested itself of a number of commercial ventures and established the publicly traded enterprise Conduent Incorporated. After that, ACS changed its name to Conduent Education Services, which took over student loan servicing starting in 2017.

Conduent made the decision to begin closing down all FFEL loan servicing activities. Conduent informed The Balance that “the company opted to quit the student loan servicing industry, as previously indicated in our public disclosures.” It finished leaving this business in 2018.

The student loan division of Conduent is no longer in business. All student loans from Conduent that were once serviced have been moved to other services.

Do I Need to Pay My Conduent Loans?

What does all of this entail for the prior borrowers of Conduent? Depending on the type of loan, borrowers should proceed in one of two ways.

  • For Federal Perkins Loans and other campus-based loans: The college that provided these loans to the borrowers ought to have notified them of the change in student loan servicer. If you haven’t already, get in touch with the college or school that issuing the loan for details.
  • For FFEL and private student loans: It is encouraged for borrowers to search for these loans on the Federal Student Aid website’s National Student Loan Database System (NSLDS). To review your student loans, log in using your FSA credentials. To view details, including your new servicer and their contact information, click on a loan number.

In accordance with the CFPB’s consent decree, Conduent must modify loan balances. It must compensate any impacted debtors. If you think this pertains to you but your loans weren’t modified, get in touch with your new student loan servicer and talk about the situation with them. You might also want to make sure your credit report is accurate by requesting a free copy, checking your loan balance, going over your past payments, and checking your credit report.

Key Takeaways

  • Student loan servicing has been discontinued by Conduent, formerly known as ACS Education Services.
  • The corporation must alter principal balances and compensate impacted customers in order to comply with the CFPB’s decision to stop using unfair loan servicing practices.
  • If you had Conduent service your student loans, get in touch with them or search up your loan details on the Federal Student Aid website. You can learn where your loans have been transferred from this.

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