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. Here’s what to know if your Conduent student loans have been moved.

What was Conduent and what did it do?

Conduent was a student loan servicer, which is a type of company that acts 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 generally handled customer service.

But the company has gone through several changes through the years. Back in 2009, Xerox purchased Affiliated Computer Services (ACS), a company that 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.

After the acquisition, Conduent settled with the New York attorney general’s office in January 2019. Among several reported grievances, the state said that Conduent steered borrowers toward expensive loan options, misreported information to the credit bureaus and misapplied payments.

In the same year, the Consumer Financial Protection Bureau (CFPB) announced a $3.9 million settlement with Conduent. The CFPB says that the company engaged in unfair borrower practices such as failing to adjust principal balances, which led to borrowers paying off loans with inaccurate balances.

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. It’s important to find out who is servicing your student loans so you can make payments and keep your account in good standing. Missing payments can have a negative impact on 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 go 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.

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Written by
Kim Porter
Contributing writer
Kim Porter is a personal finance expert who loves talking budgets, credit cards and student loans. In addition to serving as a contributing writer for Bankrate, Porter also writes for publications such as U.S. News & World Report, Credit Karma and Reviewed.com. When she's not writing or reading, you can usually find her planning a trip or training for her next race.
Edited by
Student loans editor