What Is Conduent (ACS) Education?

Definition & Examples of Conduent

Young woman working on student loan applications at laptop on living room floor

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Conduent Education Services (formerly ACS Education Services) was a student loan company that serviced campus-based, private, and federal student loans. It shut down operations on September 1, 2019, and all of its loans were transferred to other loan servicers.

If you’re a borrower who had student loans in the past that were owned or serviced by ACS or Conduent, you might be confused by this news. Here’s the history behind the shutdown of its student loan services, how the shutdown affects you, and what happened to your student debt.

Don’t wait to check on your ACS or Conduent student loans. If you don’t know their status or where they ended up, you risk falling behind on student loan payments. You’ll need to be proactive in tracing these student loans to ensure you can continue to make on-time payments and keep these accounts in good standing.

What Is Conduent?

Conduent has gone through many name changes and ownership transfers. Back in 2009, Xerox acquired Affiliated Computer Services (ACS), including the student loan arm, ACS Education Services—also called 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 chose not to renew ACS’s servicing contract. Direct loans serviced by ACS were transferred to other federal student loan servicers. ACS Education Services continued to service some Federal Family Education Loans (FFEL), Perkins loans, and private student loans. 

“Servicing” includes consolidating loans, billing borrowers, processing payments, processing deferment or forbearance applications, and helping borrowers make account changes, such as switching repayment plans.  

ACS Investigations and Fines 

After an investigation initiated in 2015, the Massachusetts Attorney General alleged that ACS Education Services had failed to properly handle borrowers’ applications for income-based repayment plans, which would have helped them secure lower monthly payments. In a 2016 statement, it also claimed that ACS “engaged in harassing debt collection practices,” with some borrowers receiving excessive phone calls from the servicer.

ACS agreed to pay $2.4 million in fines to Massachusetts as a result of this investigation. It also agreed to end illegal and abusive debt collection practices and to make reparative efforts such as crediting wrongfully charged late fees.

In 2014 and 2015, the U.S. Consumer Financial Protection Bureau (CFPB) investigated ACS. Some student loan accounts weren’t properly updated and had incorrect principal balances. The CFPB alleged that ACS lacked a proper system and manpower for processing changes to repayment (such as deferment, forbearance, or income-based repayment plans).

ACS and the CFPB agreed upon a remediation plan in 2015, which included properly adjusting relevant loans or making restitution to borrowers. The CFPB fined ACS $3.9 million for errors. “The company neither admitted nor denied liability,” Conduent told The Balance.

The CFPB’s consent order requires Conduent to adjust loan balances and make restitution to any affected borrowers. If you believe this applies to you but your loans were not adjusted, contact your new student loan servicer and discuss the matter with them. It may also be wise to check on your loan balance and review your previous payments, as well as to request a free copy of your credit report to ensure it is accurate.

In 2017, Xerox shed several business interests and created the publicly traded Conduent Incorporated. This is when ACS became Conduent Education Services, which handled student loan servicing from 2017 forward. But Conduent moved to start 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 via email. Today, Conduent's student loans business is no longer in operation. All Conduent student loans that were previously serviced have been transferred to other services.

Does Conduent Have My Student Loans?

If Conduent no longer manages student loans, what does that mean for the borrowers with whom it previously worked? According to its website, Conduent indicates borrowers should proceed as follows:

  • For Federal Perkins Loans and other campus-based loans: Borrowers should receive contact from the college through which they received these loans, indicating their change of student loan servicer. If they haven’t, they should reach out to the loan-issuing college or school for information. 
  • For FFEL and private student loans: Conduent advises borrowers to look up these loans through the National Student Loan Database System (NSLDS) via the Federal Student Aid website. Log in with your FSA credentials and review your student loans. You can click on a loan number to view details such as your new servicer and its contact information.

Key Takeaways

  • Conduent, formerly known as ACS Education Services, is no longer servicing student loans.
  • The CFPB ordered the company to correct unfair loan servicing practices by adjusting principal and repaying affected borrowers.
  • If you had your student loans serviced through Conduent, contact your lending institution or look up your loan information on the Federal Student Aid website to understand where your loans have been transferred.

Article Sources

  1. CNET. "Xerox Buys ACS for $6.4 billion." Accessed July 9, 2020.

  2. Federal Student Aid. "Loan Servicing Contracts," Download ACS Education Solutions Contract. Accessed July 9, 2020.

  3. Consumer Financial Protection Bureau. "Student Loan Servicing." Accessed July 9, 2020.

  4. Mass.gov. "AG Healey Secures $2.4 Million, Significant Policy Reforms in Major Settlement With Student Loan Servicer." Accessed July 9, 2020.

  5. Consumer Financial Protection Bureau. "Consumer Financial Protection Bureau Settles with Conduent Education Services." Accessed July 9, 2020.

  6. Xerox. "Xerox Completes Separation of Conduent, Begins New Chapter as Focused Industry Leader in Digital Print Technology." Accessed July 9, 2020.

  7. Conduent. "Borrower Login, Important Information." Accessed July 9, 2020.