Conduent Education Services (formerly ACS Education Services) was a student loan servicer that provided support for campus-based, private, and federal student loans. On September 1, 2019, it ceased operations, and all of its loans were relocated to other loan servicers.
Conduent Education Ownership: Definition and Examples
Over the years, Conduent has undergone numerous name changes and ownership transfers. In 2009, Xerox purchased Affiliated Computer Services (ACS), including the student loan division, ACS Education Services, also known as ACS Education Solutions or ACS Student Loans. At the time of the acquisition, ACS had a contract with the US Department of Education to service federal student loans. In 2012, the Department of Education decided not to renew ACS's servicing contract. ACS direct loans were transferred to other federal student loan servicers. ACS Education Services still serviced some Federal Family Education Loans (FFEL), Perkins loans, and private student loans.Note:
Consolidating loans, billing borrowers, processing payments, processing deferment or forbearance applications, and assisting borrowers with account changes, such as switching repayment plans, are examples of "servicing."How Conduent Loan Termination Worked
The Massachusetts Attorney General launched an investigation in 2015, alleging that ACS Education Services failed to handle borrowers' applications for income-based repayment plans properly. This would have assisted borrowers in obtaining lower monthly payments. In a 2016 statement, the AG also claimed that ACS engaged in "harassing debt collection practices," with some borrowers receiving excessive phone calls from the servicer. As a result of the investigation, ACS agreed to pay Massachusetts $2.4 million in fines. It also agreed to end illegal and abusive debt collection practices and make reparatory efforts such as crediting incorrectly charged late fees. In 2014 and 2015, the Consumer Financial Protection Bureau (CFPB) investigated ACS. It was discovered that it did not correctly update some student loan accounts. It had incorrect principal balances. According to the CFPB, ACS lacked a proper system and human resources for processing repayment changes such as deferment, forbearance, or income-based repayment plans. ACS and the CFPB in 2015 agreed on a remediation plan. It included making appropriate loan adjustments or making restitution to borrowers. For the errors, the CFPB fined ACS $3.9 million. Conduent told The Balance, "Neither the company admitted nor denied liability," ACS and the CFPB 2015 agreed on a remediation plan.Note:
In 2017, Xerox divested several business interests and formed the publicly-traded company Conduent Incorporated. 6 That's when ACS changed its name to Conduent Education Services, which took over student loan servicing in 2017. Conduent announced plans to phase out all FFEL loan servicing operations. "The company decided to exit the student loan servicing business, as previously communicated in our public disclosures," Conduent confirmed to The Balance. "In 2018, it completed its exit from this business." Conduent's student loan division is no longer in business. All previously serviced Conduent student loans have been transferred to other services.Do I Have to Pay Off My Conduent Loans?
What does this all mean for the borrowers with whom Conduent previously collaborated? Borrowers should take one of two steps depending on their loan type. Borrowers who received Federal Perkins Loans or other campus-based loans should have received notification from the college through which they received these loans, indicating their change of student loan servicer. Contact the loan-issuing college or school for more information if you haven't already. Borrowers should look up FFEL and private student loans on the Federal Student Aid website using the National Student Loan Database System (NSLDS). To review your student loans, sign in with your FSA credentials. You can view loan details by clicking on a loan number, such as your new servicer's contact information. According to the CFPB's consent order, Conduent must adjust loan balances. It must compensate any affected borrowers. If you believe this applies to you, but your loans have not been adjusted, contact your new student loan servicer and discuss the situation with them. You should also check your loan balance, review your previous payments, and obtain a free copy of your credit report to ensure its accuracy.Important Takeaways
- Conduent, formerly ACS Education Services, no longer handles student loan servicing.
- The Consumer Financial Protection Bureau (CFPB) ordered the company to correct unfair loan servicing practices by adjusting principal balances and repaying affected borrowers.
- If you had your student loans serviced by Conduent, contact your lending institution or look up your loan information on the Federal Student Aid website. This will show you where your loans have been moved.
