Conduent Education, formerly known as ACS Education Services, no longer services student loans. As a result, borrowers may experience confusion over how to proceed now that their Conduent student loans have been moved to other servicers.
ACS Education Services was renamed Conduent Education Services in January 2017. (Conduent is a spinoff of Xerox, which acquired ACS Education as part of its purchase of Affiliated Computer Services in 2010.)
For those with ACS student loans, there wasn’t supposed to be much change. However, the transition didn’t go as smoothly as expected. Reports of loan balance discrepancies and issues related to income-driven repayment were reported by borrowers and scrutinized by government agencies.
Conduent took over servicing on ACS student loans, including Perkins loans, Federal Family Education Loans and private student loans. (ACS in 2013 lost its federal contract to service direct loans.) Loan servicing is the administration of loans originated by someone else. For example, colleges and universities made Perkins loans, but then Conduent loan servicing took over managing the account, including receiving payments and updating information.
As of Sept. 1, 2019, Conduent Education stopped servicing student loans. Loans have been sent to other companies for management. Borrowers needed to check into their Conduent student loans to see where to send payments.
ACS and Conduent student loans have been the target of complaints and fines. The New York attorney general’s office in January 2019 announced a $9 million settlement with Conduent Education, citing claims that the company steered borrowers toward expensive options, such as forbearance, instead of helping them with income-driven repayment.
Additionally, the Consumer Financial Protection Bureau (CFPB) in May 2019 reported a settlement with Conduent for $3.9 million. The CFPB pointed to the practice of not updating principal balances in a timely manner and other issues that led to borrowers paying off loans with inaccurate balances, as well as keeping borrowers from consolidating their loans.
Ahead of the acquisition, an investigation into ACS by the Massachusetts attorney general found irregularities and problems that resulted in fines totaling $2.4 million. The state alleged that ACS — in addition to not properly processing income-driven repayment applications — charged excessive late fees and used abusive debt collection practices.
As of Feb. 26, 2020, Conduent Education had an overall satisfaction rating of 1 out of 5 stars — based on 329 ratings — on ConsumerAffairs, which collects reviews from consumers. (Note that Conduent doesn’t participate in ConsumerAffairs’ accreditation program, so the company doesn’t respond to consumer complaints on the site.)
ConsumerAffairs gives more weight to recent consumer reviews. It only includes consumer reviews from the past 12 months in its overall satisfaction rating when there are more than 30.
If your loans were previously serviced by Conduent, the company provides instructions on its website for what to do depending on the type of loan you have.
- Perkins loan: Contact the school that made the loan to find out more information about who’s servicing the loan and how to get in contact with the new servicer.
- Federal student loans: Use the National Student Loan Data System to find out your current servicer. Your lender information should be listed under “Financial Aid Review.” You should be able to get contact information from there.
If you have private student loans that were formerly serviced by Conduent, you might need to check your credit report to see what company is listed or contact your original lender to see if they have information about your current servicer. Calling the Conduent phone number or using a Conduent email (if you can find one) won’t make a difference.
It’s important to find out who is servicing your Conduent student loans because missing payments can have serious consequences. If you miss federal loan payments, you might be ineligible for certain federal benefits and programs. Missing payments on both federal and private student loans can negatively impact your credit, making it difficult to access financial services later.
You can’t pick your servicer with federal student loans — your servicer is assigned to you. However, if you decide to consolidate your loans, you can choose your servicer for your direct consolidation loan.
If you want more control over your servicer, you need to refinance your student loans, which means turning federal student loans into private loans. While you might be able to qualify for a lower interest rate and payment when you refinance, there are some things to know. When you refinance, you lose access to protections such as income-driven repayment, automatic deferment (in some cases) and Public Service Loan Forgiveness. If these are programs you think you’ll need, refinancing might not be the best choice for you.
However, depending on your situation, refinancing may be a good choice. It allows you to choose a different student loan servicer, as well as potentially save you money on interest. Carefully consider your options and compare student loan refinancing offers before you move forward.
Ben Luthi contributed to this report.
Interested in refinancing student loans?Here are the top 6 lenders of 2020!
|Lender||Variable APR||Eligible Degrees|
|1.99% – 6.65%1||Undergrad & Graduate|
|1.99% – 7.10%2||Undergrad & Graduate|
|2.99% – 6.44%3||Undergrad & Graduate|
|2.39% – 6.01%||Undergrad |
|1.99% – 6.43%4||Undergrad & Graduate|
|3.18% – 6.07%5||Undergrad & Graduate|
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1 Important Disclosures for Laurel Road.
Laurel Road Disclosures
All credit products are subject to credit approval.
Laurel Road began originating student loans in 2013 and has since helped thousands of professionals with undergraduate and postgraduate degrees consolidate and refinance more than $4 billion in federal and private school loans. Laurel Road also offers a suite of online graduate school loan products and personal loans that help simplify lending through customized technology and personalized service. In April 2019, Laurel Road was acquired by KeyBank, one of the nation’s largest bank-based financial services companies. Laurel Road is a brand of KeyBank National Association offering online lending products in all 50 U.S. states, Washington, D.C., and Puerto Rico. All loans are provided by KeyBank National Association, a nationally chartered bank. Member FDIC. For more information, visit www.laurelroad.com.
As used throughout these Terms & Conditions, the term “Lender” refers to KeyBank National Association and its affiliates, agents, guaranty insurers, investors, assigns, and successors in interest.
Assumptions: Repayment examples above assume a loan amount of $10,000 with repayment beginning immediately following disbursement. Repayment examples do not include the 0.25% AutoPay Discount.
Annual Percentage Rate (“APR”): This term represents the actual cost of financing to the borrower over the life of the loan expressed as a yearly rate.
Interest Rate: A simple annual rate that is applied to an unpaid balance.
Variable Rates: The current index for variable rate loans is derived from the one-month London Interbank Offered Rate (“LIBOR”) and changes in the LIBOR index may cause your monthly payment to increase. Borrowers who take out a term of 5, 7, or 10 years will have a maximum interest rate of 9%, those who take out a 15 or 20-year variable loan will have a maximum interest rate of 10%.
KEYBANK NATIONAL ASSOCIATION RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE.
This information is current as of June 23, 2020. Information and rates are subject to change without notice.
2 Important Disclosures for Splash Financial.
Splash Financial Disclosures
Splash Financial loans are available through arrangements with lending partners. Your loan application will be submitted to the lending partner and be evaluated at their sole discretion. For loans where a credit union is the lender, or a purchaser of the loan, in order to refinance your loans, you will need to become a credit union member.
The Splash Student Loan Refinance Program is not offered or endorsed by any college or university. Neither Splash Financial nor the lending partner are affiliated with or endorse any college or university listed on this website.
You should review the benefits of your federal student loan; it may offer specific benefits that a private refinance/consolidation loan may not offer. If you work in the public sector, are in the military or taking advantage of a federal department of relief program, such as income based repayment or public service forgiveness, you may not want to refinance, as these benefits do not transfer to private refinance/consolidation loans.
Splash Financial and our lending partners reserve the right to modify or discontinue products and benefits at any time without notice. To qualify, a borrower must be a U.S. citizen and meet our lending partner’s underwriting requirements. Lowest rates are reserved for the highest qualified borrowers. This information is current as of May 1, 2020.
Fixed APR: Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Fixed Rate options range from 2.88% (without autopay) to 7.27% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Rates are subject to change without notice. Fixed rate options without an autopay discount consist of a range from 2.88% per year to 6.21% per year for a 5-year term, 3.40% per year to 6.25% per year for a 7-year term, 3.45% to 5.08% for a 8-year term, 3.89% per year to 6.65% per year for a 10-year term, 4.18% per year to 5.11% per year for a 12-year term, 4.20% per year to 7.05% per year for a 15-year term, or 4.51% per year to 7.27% per year for a 20-year term, with no origination fees. The fixed interest rate will apply until the loan is paid in full (whether before or after default, and whether before or after the scheduled maturity date of the loan).
Variable APR: Annual Percentage Rate [APR] is the cost of credit calculating the interest rate, loan amount, repayment term and the timing of payments. Variable rate options range from 1.99% (with autopay) to 7.10% (without autopay) and will vary based on application terms, level of degree and presence of a co-signer. Our lowest rate option is shown with a 0.25% autopay discount. Our highest rate option does not include an autopay discount. The variable rates are based on the Variable rate index, is based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of April 27, 2020, the one-month LIBOR rate is 0.43763%. The interest rate on a variable rate loan is comprised of an index and margin added together. The margin is a fixed amount (disclosed at the time of your loan application) added each month to the index to determine the next month’s variable rate. Variable rate options without an autopay discount consist of a range from 2.01% per year to 6.30% per year for a 5-year term, 4.00% per year to 6.35% per year for a 7-year term, 2.09% per year to 3.92% per year for a 8-year term, 4.25% per year to 6.40% per year for a 10-year term, 2.67% per year to 4.56% per year for a 12-year term, 3.44% per year to 6.65% per year for a 15-year term, 4.75% per year to 6.93% per year for a 20-year term, or 5.14% per year to 7.10% for a 25-year term, with no origination fees. APR is subject to increase after consummation. Variable interest rates will fluctuate over the term of the borrower’s loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a co-signer. The maximum variable rate may be between 9.00% and 16.00%, depending on loan term. The floor rate may be between 0.54% and 4.21%, depending on loan term. These rates are subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
3 Important Disclosures for SoFi.
4 Important Disclosures for Earnest.
To qualify, you must be a U.S. citizen or possess a 10-year (non-conditional) Permanent Resident Card, reside in a state Earnest lends in, and satisfy our minimum eligibility criteria. You may find more information on loan eligibility here: https://www.earnest.com/eligibility. Not all applicants will be approved for a loan, and not all applicants will qualify for the lowest rate. Approval and interest rate depend on the review of a complete application.
Earnest fixed rate loan rates range from 3.19% APR (with Auto Pay) to 6.43% APR (with Auto Pay). Variable rate loan rates range from 1.99% APR (with Auto Pay) to 6.43% APR (with Auto Pay). For variable rate loans, although the interest rate will vary after you are approved, the interest rate will never exceed 8.95% for loan terms 10 years or less. For loan terms of 10 years to 15 years, the interest rate will never exceed 9.95%. For loan terms over 15 years, the interest rate will never exceed 11.95% (the maximum rates for these loans). Earnest variable interest rate loans are based on a publicly available index, the one month London Interbank Offered Rate (LIBOR). Your rate will be calculated each month by adding a margin between 1.82% and 5.50% to the one month LIBOR. The rate will not increase more than once per month. Earnest rate ranges are current as of June 15, 2020, and are subject to change based on market conditions and borrower eligibility.
Auto Pay discount: If you make monthly principal and interest payments by an automatic, monthly deduction from a savings or checking account, your rate will be reduced by one quarter of one percent (0.25%) for so long as you continue to make automatic, electronic monthly payments. This benefit is suspended during periods of deferment and forbearance.
The information provided on this page is updated as of 6/15/2020. Earnest reserves the right to change, pause, or terminate product offerings at any time without notice. Earnest loans are originated by Earnest Operations LLC. California Finance Lender License 6054788. NMLS # 1204917. Earnest Operations LLC is located at 302 2nd Street, Suite 401N, San Francisco, CA 94107. Terms and Conditions apply. Visit https://www.earnest.com/terms-of-service, email us at [email protected], or call 888-601-2801 for more information on our student loan refinance product.
© 2020 Earnest LLC. All rights reserved. Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by or agencies of the United States of America.
5 Important Disclosures for CommonBond.
Offered terms are subject to change. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900). If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.19% effective June 10, 2020.