Conduent overview: What student loan borrowers need to know
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Conduent Education Services, formerly known as ACS Education Services, was a company that serviced private, campus-based and federal student loans. It closed on Sept. 1, 2019, and transferred its loans to other servicers. If Conduent was previously your loan servicer, here’s everything you need to know.
What was Conduent and what did it do?
Conduent was a student loan servicer, a company acting as a middleman between the original lender and the borrower. Conduent sent student loan bills to borrowers, collected payments, helped borrowers enroll in payment plans and hardship programs, reported information to the credit bureaus and handled customer service.
But the company has gone through several changes through the years. In 2009, Xerox purchased Affiliated Computer Services (ACS), which provided various business and information technology services. The arm that managed private and federal student loans was known as ACS Education Services.
The Department of Education dropped ACS’ loan servicing contract in 2013, though ACS continued to service some Federal Family Education Loans (FFEL), Perkins Loans and private student loans. ACS Education Services joined Conduent Business Services in January 2017.
Both ACS and Conduent have been the target of several lawsuits, complaints and fines over the years. In 2016, the Massachusetts attorney general fined ACS $2.4 million for failing to enroll borrowers in income-driven repayment applications, charging excessive late fees and using abusive debt collection practices.
Conduent settled with the New York attorney general’s office in January 2019. The state cited steering borrowers toward expensive loan options, misreported information to the credit bureaus and misapplied payments among its reported grievances.
In the same year, the Consumer Financial Protection Bureau announced a $3.9 million settlement with Conduent because the company engaged in unfair borrower practices.
The company also settled with the Department of Education in 2022, agreeing to pay $7.9 million over allegations that they had submitted false claims to the department.
What happened to my Conduent student loans?
If Conduent Education Services previously managed your student loans, the company transferred them to a new loan servicer. When your loan is transferred to a different servicer, your loan terms and balance stay the same. However, the way you make payments may change.
It’s important to find out who is servicing your student loans so you can make payments on time and keep your account in good standing. Missing payments can hurt your credit, making it difficult to qualify for financial products later on.
How do I find out who services my student loans?
Conduent’s website explains where to find out who services your student loans. It depends on the type of loan you have:
- Perkins Loans and other campus-based loans: You should have received information from the school that originally made the loan regarding the change in student loan servicers. But if you missed the letter, you can reach out to the loan-issuing college and ask who’s servicing the account and how to contact the new servicer.
- Federal student loans: Federal student loan borrowers can log in to the Federal Student Aid website using their FSA ID to find out who services their student loan. You can also log in to the National Student Loan Data System and look under “Financial Aid Review” to find contact information for your current servicer.
- Private student loans: There’s no national database for private student loans, but you can check your credit reports to see which company is listed as your loan holder. The company that originally disbursed the money to you might also have information about who’s currently servicing your account.
The bottom line
Conduent Education Services is no longer managing student loan accounts. If the company previously serviced your loan, you’ll need to know where to send your payments now. You can log in to the Federal Student Aid website, check your credit reports or contact your original lender to find out where your loans have been transferred.