Start My Answer

What is ACS Ed Services?

Dena Standley | February 12, 2024

Dena Standley
Legal Expert, Paralegal
Dena Standley, BA

Dena Standley is a seasoned paralegal with more than 20 years of experience in legal research and writing, having received a certification as a Legal Assistant/Paralegal from Southern Technical College.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.

Summary: ACS Ed Services was once a leading student loan servicing company that ceased operations after exchanging hands and losing several lawsuits. How did the decline occur? What happened to the pending loans? How do borrowers access their new loan servicers? Today, SoloSuit will answer these questions for you and show you how to fight off student loan debt collectors.

ACS Ed Services (also known as Conduent Education Services) was once among the largest loan servicing companies contracted by the Department of Education. At some point, it was the leading student loan company with a record of receiving a $2 billion federal contract.

Sued for debt? Respond to the lawsuit.

Respond with SoloSuit

Get Started

What happened to ACS student loans?

First, ACS got acquired by Conduent. Then, on September 1, 2019, it ceased all its student loan services. The pending accounts were transferred to other loan servicers, such as:

  • Aspire Resources Inc.
  • CornerStone
  • ESA/EdFinancial
  • FedLoan Servicing (PHEAA)
  • MOHELA
  • Navient
  • Nelnet
  • OSLA Servicing
  • Sallie Mae

After the transition, confusion occurred among borrowers, but the loan terms and payment options did not change. In this article, we will give you the history of ACS Ed Services, the loans they provided, how to find your new loan provider, and another option available for clearing your student loan debt.

But first, are student loan debt collectors harassing you? You can stop their calls using our Debt Validation Letter. Learn how to draft one in the following video:

Here's a brief history of ACS Ed loans

In 2009, Xerox acquired Affiliated Computer Services for $ 6.4 billion, including the student loans department called ACS Education Services or ACS Education Solutions. Before the acquisition, the Department of Education (DOE) had a contract with ACS to service federal student loans.

Due to numerous complaints from borrowers over the years, DOE did not renew the loan servicing contract in 2012. But they were allowed to continue to service the pending Perkin loans, private student loans, and Federal Family Education Loans (FFEL).

Fast forward to 2017, Xerox discarded several business interests and created Conduent Inc., a publicly traded company. ACS Ed Services changed to Conduent Education Services. Conduent Inc then moved to close down all student loan servicing operations and completed the exit in 2018, and it became official on September 1, 2019.

Which loans did ACS Ed Services handle?

ACS Ed Services used to service three types of loans:

  1. FFEL program loans: Although it was discontinued in 2010, the pending loans were serviced by ACS until DOE transferred them to another loan servicer.
  2. Campus-based loans: These loans include Nursing Student Loans (NSL), Health Professionals Student Loans (HPSL), and Federal Perkins Loans (FPL).
  3. Private loans: These are loans taken from other lenders and not the government. The repayment plan for these loans depends on the initial lender and not ACS.

To date, borrowers with FFEL and campus-based loans can qualify for income-based repayment options—regardless of the current loan servicer.

Complaints against ACS Services

ACS Ed Services has had countless complaints about how they handled student loans since 2012. The piling evidence of malpractice from debtors contributed to losing the contract with DOE and closing down the student loan department. ACS made millions of losses from paying out damages to borrowers by the end of 2017.

The Consumer Financial Protection Bureau (CFPB) received most of the complaints. Consequently, they investigated ACS in 2014 and 2015. They found that ACS lacked a proper workforce and systems for processing repayments such as forbearance, deferment, and income-based repayment plans. As a result, CFPB fined the company $3.9 million for these errors.

The following are examples of the complaints consumers submitted to the CFPB database against ACS Ed Services (edited for clarity).

“I have been paying this loan since 2002 until last year and have not seen the debt amount reduce. It's almost twenty years later, and 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, and each time I contacted the servicer, they would steer me to forbearance. They did not give me proper information regarding loan options that would suit me. They often took extra time processing my paperwork, keeping me in forbearance longer.”

How do I find my new loan servicer to make ACS loan payments?

If you had a Federal Perkins loan or campus-based loan, you should have received information from the college the loan was sent to informing you of the change in student loan servicer. Reach out to the school if you have not received this communication.

If you have FFEL or private student loan, check the loan in the National Student Loan Database on the Federal Student Aid website. You must first log in using your student credentials and click on the loan number button to view the new servicer and their contact information.

Since all ACS loans were transferred to new loan servicers, your repayment plan no longer lies with them. However, you can continue making monthly payments as you used to, with minimal changes to the terms and repayment plan.

Can I refinance my ACS Ed Services student loan?

Yes, it is possible to refinance your ACS student loan. Carefully planned refinancing can reduce your interest rate, help you save money, and cut the repayment period. Notably, federal loans become private loans once you refinance them—you lose access to federal protection, such as income-driven repayment plans, loan forgiveness, and forbearance.

The following are the steps for refinancing your student loan:

  1. Calculate how much you need to fully pay the loan, and confirm with the loan servicer that your records are accurate.
  2. Check your credit score to ensure you qualify for a lower interest rate than what you currently pay.
  3. Shop for the best rates and terms from various lenders.
  4. Apply for a loan from the most favorable company.
  5. Start repaying your new loan immediately after clearing the previous one.

Switching from ACS and the loan servicer DOE transferred you to may relieve the long-standing worry of being taken back and forth and receiving inaccurate loan figures.

SoloSuit can help with outstanding student loans

If you have debt collectors calling nonstop about a student debt you owe, SoloSuit can help you fight back and win. Our mission at SoloSuit is to assist debtors in handling their debt, both in and out of court, without hiring lawyers or debt management specialists.

Whether you are dealing with a debt collector’s first call or a debt collection lawsuit, SoloSuit has resources and services available to help you challenge the collectors’ claims, force a suit out of court, and move on with your life.

>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate

>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)

How to Answer a Summons for debt collection in all 50 states

Here's a list of guides on how to respond to a debt collection lawsuit in each state:

The Ultimate 50 State Guide

Guides on how to resolve debt with every debt collector

Are you being sued by a debt collector? We’re making guides on how to resolve debt with each one.

Resolve your debt with your creditor

Some creditors, banks, and lenders have an internal collections department. If they come after you for a debt, Solosuit can still help you respond and resolve the debt. Here’s a list of guides on how to resolve debt with different creditors.

Settle your medical debt

Having a health challenge is stressful, but dealing medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Guides on arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Stop calls from debt collectors

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Federal debt collection laws can protect you

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Get debt relief in your state

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt collection laws in all 50 states

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt state guides

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote a guide on each state’s statutes. Check it out below.

Statute of Limitations on Debt Collection by State (Best Guide)

Check the status of your court case

Don’t have time to go to your local courthouse to check the status of your case? We’ve created a guide on how to check the status of your case in every state, complete with online search tools and court directories.

How to stop wage garnishment in your state

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in all 50 states.

Other wage garnishment resources

How to settle a debt in your state

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created a guide on how to settle your debt in all 50 states. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

How to settle with every debt collector

Not sure how to negotiate a debt settlement with a debt collector? We are creating guides to help you know how to start the settlement conversation and increase your chances of coming to an agreement with every debt collector.

Other debt settlement resources

Personal loan and debt relief reviews

We give a factual review of the following debt consolidation, debt settlement, and loan organizations and companies to help you make an informed decision before you take on a debt.

How to repair and improve your credit score

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt.

How to resolve student loan debt

Struggling with student debt? SoloSuit’s got you covered. Below are resources on handling student loan debt.

Civil law legal definitions

You can represent yourself in court. Save yourself the time and cost of finding an attorney, and use the following resources to understand legal definitions better and how they may apply to your case.

Get answers to these FAQs on debt collection

How-to debt guides

Learn more with these additional debt resources


Contents