What is ACS Ed Services? History and What Happened to Your Loans
ACS Ed Services closed in 2019 after numerous complaints and lawsuits. Your loans were transferred to new servicers like Nelnet, Navient, and MOHELA. If debt collectors are harassing you about student loans, you can demand validation and respond to lawsuits to protect your rights.
Answer Your LawsuitACS Ed Services was once a leading student loan servicing company. The company ceased operations after multiple lawsuits and complaints. Your pending loans were transferred to new servicers.
Understanding what happened helps you manage your student loan debt. You can find your new servicer and protect your rights.
Being Sued Over Student Loan Debt?
Don't ignore the summons. You must respond within the deadline to avoid a default judgment. Our partner Solo helps you answer debt collection lawsuits and negotiate settlements.
Respond to LawsuitWhat Happened to ACS Student Loans?
ACS got acquired by Conduent first. On September 1, 2019, it ceased all student loan services.
Your pending accounts were transferred to other loan servicers:
- Aspire Resources Inc.
- CornerStone
- ESA/EdFinancial
- FedLoan Servicing (PHEAA)
- MOHELA
- Navient
- Nelnet
- OSLA Servicing
- Sallie Mae
After the transition, confusion occurred among borrowers. But your loan terms and payment options did not change.
Student loan debt collectors harassing you? You can stop their calls with a debt validation letter. Our partner Solo helps you respond to collectors and lawsuits.
Brief History of ACS Ed Loans
In 2009, Xerox acquired Affiliated Computer Services for $6.4 billion. ACS Education Services came with the purchase.
The Department of Education (DOE) had contracted with ACS to service federal student loans. Due to numerous complaints from borrowers, DOE did not renew the contract in 2012.
ACS was allowed to continue servicing pending Perkin loans and private student loans. They also handled Federal Family Education Loans (FFEL).
In 2017, Xerox created Conduent Inc., a publicly traded company. ACS Ed Services changed to Conduent Education Services.
Conduent Inc moved to close all student loan servicing operations. They completed the exit in 2018. The closure became official on September 1, 2019.
Which Loans Did ACS Ed Services Handle?
ACS Ed Services used to service three types of loans:
FFEL Program Loans
The program was discontinued in 2010. The pending loans were serviced by ACS until DOE transferred them elsewhere.
Campus-Based Loans
Campus-based loans include Nursing Student Loans (NSL) and Health Professionals Student Loans (HPSL). Federal Perkins Loans (FPL) were also in this category.
Private Loans
Private loans came from other lenders and not the government. The repayment plan depends on the initial lender.
Borrowers with FFEL and campus-based loans can qualify for income-based repayment options. Your current loan servicer determines eligibility.
Complaints Against ACS Services
ACS Ed Services received countless complaints about how they handled student loans. Piling evidence of malpractice contributed to losing the DOE contract.
ACS made millions of losses from paying damages to borrowers. By the end of 2017, the company was bleeding money.
The Consumer Financial Protection Bureau (CFPB) received most of the complaints. They investigated ACS in 2014 and 2015.
CFPB found that ACS lacked proper workforce and systems. Processing forbearance, deferment, and income-based repayment plans was poorly handled. CFPB fined the company $3.9 million for these errors.
Real Complaints from Borrowers
The CFPB database contains numerous complaints against ACS Ed Services. Here are examples edited for clarity:
“I have been paying this loan since 2002 until last year. I have not seen the debt amount reduce. It’s almost twenty years later. It looks like I never paid anything. I checked with the college, and they told me to wait. I am still being charged interest for non-payment.”
“My student loans were bought by ACS Conduent. Each time I contacted the servicer, they would steer me to forbearance. They did not give me proper information regarding loan options. They often took extra time processing my paperwork. This kept me in forbearance longer.”
How to Find Your New Loan Servicer
You should have received information about your new servicer. The communication came from the college your loan was sent to.
Reach out to the school if you have not received this information. For Federal Perkins loans or campus-based loans, they have your details.
For FFEL or Private Student Loans
Check the loan in the National Student Loan Database. You can access it on the Federal Student Aid website.
Log in using your student credentials. Click on the loan number button to view the new servicer. Their contact information will be displayed there.
All ACS loans were transferred to new loan servicers. Your repayment plan no longer lies with ACS. You can continue making monthly payments as you used to. Minimal changes to terms and repayment plans occurred.
Can You Refinance Your ACS Ed Services Student Loan?
Yes, you can refinance your ACS student loan. Carefully planned refinancing can reduce your interest rate.
Refinancing helps you save money. You can also cut the repayment period.
Federal loans become private loans once you refinance them. You lose access to federal protection. Income-driven repayment plans, loan forgiveness, and forbearance disappear.
Steps for Refinancing Your Student Loan
- Calculate how much you need to fully pay the loan.
- Confirm with the loan servicer that your records are accurate.
- Check your credit score to ensure you qualify for a lower interest rate.
- Shop for the best rates and terms from various lenders.
- Apply for a loan from the most favorable company.
- Start repaying your new loan immediately after clearing the previous one.
Switching from ACS and the DOE servicer may relieve long-standing worry. No more being taken back and forth with inaccurate loan figures.
How to Handle Student Loan Debt Collectors
Debt collectors may be calling about your student loan debt. You can fight back and win.
If you’re dealing with a debt collector’s first call or a lawsuit, help is available. You can challenge the collectors’ claims. Our partner Solo helps you respond to debt collection lawsuits.
You have rights when dealing with debt collectors. You can demand they validate the debt. You can also negotiate a settlement for less than you owe.
Getting sued over student loan debt requires immediate action. You must respond to the lawsuit within the deadline. Failing to respond leads to a default judgment against you.