Conduent Education Services (previously ACS Education Services) was a student loan firm that serviced campus-based, non-public, and federal student loans. It shut down operations on September 1, 2019, and all of its loans had been transferred to different loan servicers.
If you’re a borrower who had student loans previously that had been owned or serviced by ACS or Conduent, you may be confused by this information. Here’s the historical past behind the shutdown of its student loan providers, how the shutdown impacts you, and what occurred to your student debt.
Don’t wait to verify in your ACS or Conduent student loans. If you don’t know their standing or the place they ended up, you threat falling behind on student loan funds. You’ll should be proactive in tracing these student loans to make sure you can proceed to make on-time funds and hold these accounts in good standing.
What Is Conduent?
Conduent has gone via many identify adjustments and possession transfers. Back in 2009, Xerox acquired Affiliated Computer Services (ACS), together with the student loan arm, ACS Education Services—additionally referred to as ACS Education Solutions or ACS Student Loans. 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 selected to not renew ACS’s servicing contract. Direct loans serviced by ACS had been transferred to different federal student loan servicers. ACS Education Services continued to service some Federal Family Education Loans (FFEL), Perkins loans, and personal student loans.
“Servicing” consists of consolidating loans, billing debtors, processing funds, processing deferment or forbearance functions, and serving to debtors make account adjustments, reminiscent of switching compensation plans.
ACS Investigations and Fines
After an investigation initiated in 2015, the Massachusetts Attorney General alleged that ACS Education Services had did not correctly deal with debtors’ functions for income-based compensation plans, which might have helped them safe decrease month-to-month funds. In a 2016 assertion, it additionally claimed that ACS “engaged in harassing debt collection practices,” with some debtors receiving extreme cellphone calls from the servicer.
ACS agreed to pay $2.4 million in fines to Massachusetts on account of this investigation. It additionally agreed to finish unlawful and abusive debt assortment practices and to make reparative efforts reminiscent of crediting wrongfully charged late charges.
In 2014 and 2015, the U.S. Consumer Financial Protection Bureau (CFPB) investigated ACS. Some student loan accounts weren’t correctly up to date and had incorrect principal balances. The CFPB alleged that ACS lacked a correct system and manpower for processing adjustments to compensation (reminiscent of deferment, forbearance, or income-based compensation plans).
ACS and the CFPB agreed upon a remediation plan in 2015, which included correctly adjusting related loans or making restitution to debtors. The CFPB fined ACS $3.9 million for errors. “The company neither admitted nor denied liability,” Conduent informed The Balance.
The CFPB’s consent order requires Conduent to regulate loan balances and make restitution to any affected debtors. If you imagine this is applicable to you however your loans weren’t adjusted, contact your new student loan servicer and focus on the matter with them. It might also be smart to verify in your loan steadiness and assessment your earlier funds, in addition to to request a free copy of your credit report to make sure it’s correct.
In 2017, Xerox shed a number of enterprise pursuits and created the publicly traded Conduent Incorporated. This is when ACS grew to become Conduent Education Services, which dealt with student loan servicing from 2017 ahead. But Conduent moved to begin winding down all student loan servicing operations for FFEL loans.
“As previously communicated in our public disclosures, the company decided to exit the student loan servicing business and completed its exit from this business in 2018,” Conduent confirmed with The Balance by way of e mail. Today, Conduent’s student loans enterprise is not in operation. All Conduent student loans that had been beforehand serviced have been transferred to different providers.
Does Conduent Have My Student Loans?
If Conduent not manages student loans, what does that imply for the debtors with whom it beforehand labored? According to its web site, Conduent signifies debtors ought to proceed as follows:
- For Federal Perkins Loans and different campus-based loans: Borrowers ought to obtain contact from the faculty via which they acquired these loans, indicating their change of student loan servicer. If they haven’t, they need to attain out to the loan-issuing faculty or college for info.
- For FFEL and personal student loans: Conduent advises debtors to lookup these loans via the National Student Loan Database System (NSLDS) by way of the Federal Student Aid web site. Log in along with your FSA credentials and assessment your student loans. You can click on on a loan quantity to view particulars reminiscent of your new servicer and its contact info.
- Conduent, previously referred to as ACS Education Services, is not servicing student loans.
- The CFPB ordered the corporate to right unfair loan servicing practices by adjusting principal and repaying affected debtors.
- If you had your student loans serviced via Conduent, contact your lending establishment or lookup your loan info on the Federal Student Aid web site to grasp the place your loans have been transferred.