ACS Loan Serving, also known as ACS Educational Services (and owned by Xerox believe it or not), is one of the largest loan servicing operations contracted by the Department of Education. In recent years, because of complaints with ACS Loan Servicing, most of their Direct Loans were transferred to other Federal loan servicers by the Department of Education. However, ACS still handles Federally backed bank-based loans (such as loans that are owned by Wells Fargo and other banks).
What many student loan borrowers don’t realize is that ACS Loan Servicing doesn’t actually “own” your loans. They are just a loan servicing company – meaning they are supposed to handle the customer service stuff, like:
- Handle payments and credit your account appropriately
- Administer student loan programs related to your loan
- Take your customer service calls and handle them correctly
- Process forgiveness programs, income-based repayment programs, and more that you may qualify for
- Report your loans to the credit bureaus accurately
- Seek repayment for defaulted loans
However, there have been problems, and borrowers are sometimes left feeling trapped.
If you’re not quite sure where to start or what to do, consider using a DIY student loan help service like LoanBuddy. In just a few minutes, you can understand the best repayment plan and forgiveness options you may qualify for. Check out LoanBuddy here >>
ACS Loan Servicing Problems
ACS has been dealing with problems related to it’s handling of student loans as far back as 2012. Due to complaints about their handling of student loans, the Department of Education transferred many of their loans to other servicers. You see, the Department of Education owns the Direct Loans, so they can decide who your loan servicer will be – and there are many others. Since ACS was having so many problems, the Department of Education cut ties.
More recently, the State of Massachusetts sued ACS and they agreed to a settlement, due to the fact that “ACS . . . regularly undermined the opportunity for students to access appropriate repayment plans”. Basically, what this means for borrowers is that they would try to call and change their repayment plan to an income-based repayment plan, and ACS would tell them “no”, even if that wasn’t correct.
As a result, borrowers felt stuck in high cost repayment plans they couldn’t afford.
Student Loan Borrower Problems With ACS Education Services
ACS has been mentioned a few times before on our site. Borrowers, when feeling frustrated with their loan servicer, have no place to vent their frustrations except online.
Check out this comment from SJ from a year ago (and their website isn’t any better today even though they’re owned by a big “tech” company):
How To Get Help Dealing With ACS
If you don’t know who your loan servicer is, you can find all your student loan information, and do many things with your loans for free at StudentLoans.gov.
You could also file a complaint with the CFPB here: consumerfinance.gov/complaint/
Finally, if you are able to, you should look at refinancing your student loans away from ACS Loan Servicing. It doesn’t always make sense to refinance Federal student loans into private loans, but for some people looking to save money, it does.
You can do this in a variety of ways, but I recommend looking using Credible, a student loan refinancing marketplace where you can receive offers from multiple lenders after filling out one short form.
Try it out: Credible. It’s free and you can get an estimate of how much you can save by refinancing in less than a minute. Plus, you’ll get up to a $750 bonus for using Credible with our link!
If you’re not quite sure where to start or what to do, consider hiring a CFA or CFP to help you with your student loans. We recommend The Student Loan Planner to help you put together a solid financial plan for your student loan debt. Check out The Student Loan Planner here.
Warning
Remember, student loan servicing companies like Nelnet can and do report you to the credit bureaus for non-payment of your student loans. But, from the stories shared above, they sometimes make mistakes. That’s why I urge you to check your credit score for free using Credit Karma. They will show you your credit score for free, and then you can know if something is wrong. Plus, there are no gimmicks — it’s truly free.
Contacting ACS Directly
Before you go on thinking that ACS Loan Servicing is a scam and you have no recourse, make sure that you take the steps below.
Contact ACS Educational Services (they make it confusing, so make sure you send stuff to — or call — the right location):
Website: https://www.acs-education.com
If you have an FFEL Loan (Stafford, PLUS, SLS):
- Phone: (800) 835-4611
- Address:
ACS
P.O. Box 7051
Utica, NY 13504-7051
If you have Campus-Based Loan (Perkins, Nursing Student Loan, National Health Professional Loan):
- Phone: (800) 826-4470
- Address:
ACS Inc.
Campus Products and Services
P.O. Box 7060
Utica, NY 13504-7060
Share Your Story
Have you had a challenging experience with ACS Loan Servicing as your student loan provider? Has their customer service not been of service? Please share your story below — and even better if you found a resolution!
Danyell Johnson says
In short, we have been paying ACS for over 2 years under the Income Based Repayment Plan. They make it VERY difficult to even be approved for this plan as they say they do not receive documents that have been faxed multiple times and even emailed. Then this past year we were given a payment amount that turned out to be less than the interest on the loan each month. So when I paid said amount I was charged a $127 late charge because no money had gone to the principle. The repayment plan began in July 2016 and after calling every month, finally in March 2017 someone finally told me the late charges were due to no payment made to principle. All other calls was given different answers of some type. I then asked how much I would need to pay to not receive a late charge and could not get a concrete dollar amount. ACS operators are usually very difficult to understand and there is often a significant language barrier.
Thank you so much for writing this article! I am in the process of renewing my IBR plan for this year and have already faxed the forms twice and just emailed them today. Ugg!
Robert Farrington says
This is one of the key reasons that we recommend you mail your forms certified mail with a return receipt so you have proof of delivery.
Jena Chapman says
This story is nearly identical to mine! I’ve spent the majority of the last 8 months going back and fort trying to get an affordable payment. Submitting forms and then they say they didn’t get it or I didn’t fill it out properly. Then I get different answers as to how it should be filled out. Today, while attempting to begin a forgiveness program for first responders, I was informed that this is not a federal student loan. It’s a private loan? There’s no way. This new company is supposed to be helping me get to the bottom of it. Wish I had done this search sooner.
Victoria says
Yes, they told me the same. They referred to FFEL as “private-federal loans”. Umm, no.
Steve says
I graduated from law school in 2004. I have been paying my student loans to American Education Services (AES) ever since. On July 12, 2017, I received a payment coupon book from ACS with 14 payment coupons for $40.00 payments to the law school I was graduated from. This is coming out of the blue. 13 years after graduation ACS is demanding payment for student loans that I don’t believe I owe. Does the statute of limitations for contracts, or laches apply to this situation? This seems unreal.
Robert Farrington says
First, did your loans move servicers? Sometimes, your loans get transferred to a new servicer – so check that.
Second, pull your own credit report and validate what debts you have there.
Third, if this debt is incorrect, you can get a student loan lawyer to help you contest it (or you could do it yourself, but you might not feel comfortable).
Amber meyer says
I had around $9,000 in fed loans and paid and never missed a payment for 7 years.The loans were supposed to be paid off in 10 years but I had to put my loans in forbearance 3 years ago.After paying for 7 years my loans were still close to $8000 I just don’t understand and I’ve called and get no answers.i recently called to start making payments again and was told I’m eligible for the loan forgiveness program and because I’m tight on money now I went with it but It just doesn’t seem right!I have to make 3 payments of $199 for three months then my payments will be $0 for 300 months YES 300 months that’s a long damn time but only asking as I make under $30,000 a year.So I have to promise to be poor for 20 something years or I have to pay it all back.????? Had anyone else heard of this?
Robert Farrington says
Sounds like you’re paying a third party company for help instead of working directly with your loan servicer? If so, you will find this article helpful: https://www.thecollegeinvestor.com/16429/is-your-student-loan-repayment-company-a-scam/
As for your loan balance growing, a long forbearance can add a lot of interest to your loan. Just because you’re not required to make payments doesn’t mean interest stops. Your loan basically re-grew the entire time you didn’t pay.
Kelly says
Unfortunately , I think we are all getting tricked by this servicer companies as I just had my loan servicer changed from ACS to Nelnet, and I received a statement bill from Nelnet claiming I owed $48,000 dollars, double of what I borrowed. From that website I learned of the department of education website where you can log on and review your student Fafsa report that shows a history of your student loans and grants received when in school and the payments paid during the repayment period (that is the money we pay to them for the loan) and found that not even one dollar of my payments have ever been reported by ACS, not even one, before the 10 years on the Income Based Repayment Plan, I was on a set plan that I had paid for 6 years $237 dollars each month on a fixed 3.25% repayment plan, so why is it that not even one dollar is showing on the Federal Department of Education website showing any of those payments? I spoke to an agent for the department and they said that all the information they receive is from third parties, I believe I was told that the information is received electronically, I asked what evidence they have received as to prove the statements given to them are verified and they said what ever documents they have it will be in your file for you to view on line or private information owned by the servicer and you need to contact them. So I looked on my forms posted and the only form they have is a FRAUD student loan contract created by someone who was not me and they used my name in an electronic signature to claim I authorized the loan. I never authorized any such loan, so my 20 grand loan that should have been almost paid off is now close to a 50 thousand dollar loan and there is no one to account for our payments or crediting our accounts and we never agreed to this kind of loans when we received them by our school. I am thinking these servicer are turning our grants into loans and adding the grants up as loans received, it might actually be our schools doing it to balance their own books. I am not sure where it begins but I do know that the corruption can end with us speaking out and telling our states attorney general of the fraud and harm coming to us. As we can’t get rid of this loans ever and have freedom. This taking our money and not accounting for the money that is given through this servicer is theft and fraud. I do not think they are actually servicing anything except themselves to our money.
Secondly, I thought well at least I only have 10 more years to go then it will all be forgiven due to the income based repayment plan, but no, they didnt report even one year of the enrollment, luckily for me I kept a copy of each years statement of income to continue my enrollment in the program so I have evidence with proof of delivery and acceptance from ACS as to receiving the certified mail. It is still going to require a lawsuit to fix this so I would like everyone to remember to send all recertification by certified mail with receipt of delivery, and fax with receipt of fax delivery and their letter sent in return by email or mail that states that ACS is in receipt of your recertification under the IBR plan. That way you are at least able to negotiate with them, report them or sue them.
Betty Pool says
I retired 4 years ago and after making payments of $300 a month for years I requested a IBR hoping to lower my payments since I now make only $30,000 being retired. Well you got a IBR in August 2014, with zero payments a month. I was told as long as my income didn’t increase I would be at zero payments but at the end of the loan period I could owe $99,000 in interest. My original loan was 42,000 and now was down to about $35,000. At the time of was 66 years old.
Fast forward to the pass 3 years. In 2015 I had to keep sending in my income for one reason or another. 5 times and still they kept my payments at zero. That same year they thought for some reason I had made $50,000 and were going to charge me $50 a month in payments . That got settled . Then in 2016 I had no problems with my paperwork and payments still at zero.
Then 2017 the nightmare began. I started in March and it went on till a July fighting with them. To make a long story short now I’m having to pay $170 a month. It started in an July . Seems the only explanation I can get is that they had made a mistake for 3 years. Bull! My expenses have been based since getting the IBR on having no payments. To say this now has put me in a bind is an understatement. I have requested validation and all I get is an email from a supervisor,who never returns ny calls, that a letter has been sent out for me to explain how to go to the ACS site and see the chart as to where my income is, like I haven’t already done that. Again I was told my the person I talked today the IBR messed up. That’s not good enough. I’m willing to roll over on this because this has effected me greatly. I still make only $30,000. Do I have other recourse?
Robert Farrington says
There is nothing “secret” about what your payment would be. You can use the Department of Education’s repayment estimator here: https://studentloans.gov/myDirectLoan/mobile/repayment/repaymentEstimator.action
Put in your information and see what your payment should be. If you’re still having issues and there is a discrepancy, you can file a complaint with the CFPB: consumerfinance.gov/complaint/
Jamie says
Hi everyone!
Here is my story..Ill keep it short.
I consolidated my student loans with ACS in 2007 for $56k loan
Over the last 10 years Ive paid a total of $41,620
As of today, 9/27/17, my balance due is $54k (10 years later, no budge!!!)
Yes, you read that right!
I want to cry every month making this payment.
I just recently refinanced through SoFi with a fixed rate, thank GOD! I am hoping to have this loan paid off in ANOTHER 20 years…but at least I know Im now in good hands…I only wish I could get my $40k back!!!
What a waste…we live and learn I guess…I always spread the word about ACS to help others, I hope you can do the same…good luck to you all!!
Anon says
When you consolidate you can have up to a 30 year term on your loan, which is great because it will give you a lower payment, but is shitty because you’ll pay waaay more interest. I mean, it works the same way as a mortgage. If you look at your amortization schedule you pay most interest the first half of term, and mostly principle the 2nd half.
Matt Decker says
I have almost the same story. ACS has really screwed me. I just filed a complaint with the Dept. of Education ombudsman. Something can’t be right here, so I’m hoping they will find something and actually help me. I’ll try to remember to update this thread when I hear back from the ombudsman.
Robert says
All I received all summer was that I was being changed to Conduent. ACS told me they sent out a letter stating my ibr was running out in 90 days (which in believe is a lie), now I’m stuck with a $800 bill until it’s paid off and will be reported as being late to the credit bureaus until it’s paid off. Out of my 3 loan providers (great Lakes and nelnet), acs is the only one I have trouble with and don’t use the online ibr help from fasa.org. They are literally ruining my credit right now.
Anon says
I worked at ACS for 10 years in the IBR department. It sounds like a lot of the issues above are from not understanding how the plan works (or not being able to get the right information from a customer service agent). Bottom line, when you choose to lower your payment to something like a graduated repayment plan that increases every 2 years but starts off with a nice low payment, you’re basically paying only interest for quite some time. Also, when you go into forbearance for 3 years, all the interest that built up over that time will be added to your pbo once the forbearance is over, therefore you’ll be accruing interest on interest.
Heidi says
What is really scary is ACS acquired Xerox, not the other way around. I worked at Xerox HQ in Wilsonville, OR for years and don’t get me started on the issues with paycheck deductions, vacation and sick time and other screwy things that suddenly started when ACS took over. Their reps were in Guam and did nothing to help, It was so Mickey Mouse it was almost laughable. They appear to just be a very unethical and questionable company and I now look down on Xerox because of it.
Jeff says
I have been paying on a loan every month for ten year. It comes directly out of my bank account. The original loan was for 8,000. I have paid over 22,000 and they say that I owe 17,000. I owe more than twice the amount of the original loan. My loan has been transferred to another company. Why would I pay another company? Nelnet, ACS and now Navent, I would not be surprised they’re all the same company.
Robert Farrington says
What type of repayment plan are you on? Have you ever gone into forbearance or even default?
Cocoabean says
I have worked for 20 years for a public defender. My loans were serviced by ACS from prior to Oct 2007 until Oct 2012. I SHOULD be eligible for PSLF (public service loan forgiveness) or TEPSLF. However, NO RECORD OF MY ACS PAYMENTS!!!! In fact the Dept of Education has me listed in forbearance from 2005 until 2007. Back in 2007 or 2008, ACS told me that the graduated plan I was in was the cheapest plan and it would make me eligible for PSLF. Which of course, is not close to accurate. Thankfully, in 2011, I had the apparent normal problem (at least normal with ACS) of having my student loans listed twice on my credit report. When I was re-financing my house, the mortgage company thought I owed double the student loans. So, to fix that problem I went directly to the Department of Education and obtained a printout of my loan payments. Again, thankfully, I saved that printout. So I have proof of the payments. 10 more payments were missing before i was transferred to OSLA. Thankfully, I had automatic debit. I was able to obtain my bank statements and prove the missing 10 payments. Smooth sailing with OSLA. PHEAA keeps changing the number of months they count for PSLF. First it was 36 (the time I was with OSLA) then 56 adding the 20 months with PHEAA (after i re-certified my employment in June). Recently, PHEAA sent me another letter for no reason — I am down to 20 months. PHEAA’s explaination is that I was in the wrong re-payment plan. I was clearly in IBR. Why they took the 36 months away is still a mystery. So far, I am one of the 99% rejected for PSLF. Apparently, only 96 people have obtained PSLF. My goal is to be the 100th person to receive PSLF. I am going to get the PSLF if it kills me. It is a little shocking just how bad the situation is.
Robert Farrington says
Remember, to get PSLF, you need to meet three criteria for all payments:
1. Direct Loans
2. Income-Driven Repayment Plan
3. Qualifying Employment
Even TEPSLF only considers incorrect repayment plans that met certain criteria.
Also, the program started in October of 2007. At the time, most loans were FFEL, ICR was the only repayment plan, and so not many people were eligible. It’s not until 2011 that IBR came into existence and Direct Loans were common. It’s only estimated that maybe 1,000 people will get it in 2019 – simply because they didn’t meet the criteria. By 2020, that number will start rising significantly, with 2021 being a big year of eligibility.
You need to check the dates of all your payments to ensure they all match this criteria. You can pull the information off the NSLDS and look at your own data to see.
Sandy says
I had a Parent Plus loan thru ACS back to 2005. I turned my account over to Mohela a number of years ago. I have consistently made payments. I believe I am now eligible for a Public Service Loan Forgiveness. But, I cannot get my records from ACS to verify that between them and Mohela that I have paid 120 payments. I have tried calling number posted here but it is out of service. Anyone know how to get hold of them?
Robert Farrington says
Your parent PLUS loan by itself is not eligible because you can’t have a qualifying payment plan. You needed to re-consolidate to a direct loan and make payments under ICR. Here’s a guide: https://thecollegeinvestor.com/17101/options-if-you-cant-afford-your-parent-plus-loans/
Laurie Neely says
I paid off my student loan with ACS/Nelnet in 2017, yet my credit report says that it is still an open account, and I still owe $9,340. Who do I contact about this now? I even got a letter from them saying it was paid – so what is this?
Robert Farrington says
It’s very possible it’s an error, but are you sure it’s not a second loan?
First, I would check the NSLDS and see what the government says.
Then, I would follow this guide to dispute your credit report: https://thecollegeinvestor.com/20604/student-loan-lender-messes-up-credit-report/
Sherri says
I saw an article about ACS and I began looking very closely to my new loan through Nelnet student Loans. ACS did not document any payment from 2004 to 2017. When I started with ACS I owed $38,343.24 I know owe $51,549.67. 13 years!!!!
Is there anyone out there can help navigate through this unbelievable situation. The sad part is now I am retired and living off retirement pay and social security. I will never be able to pay this off. I will go my grave owing for my education.
Robert Farrington says
Do you have copies of your payment record? Statements? How did you not notice that your payments weren’t posting correctly for 13 years?
If you have records and can prove it, you can start with the Department of Education’s Ombudsman’s office. But be prepared to provide proof of everything, payment amounts, statements, etc.
JK says
I have been doing 10 year Public Service Loan Forgiveness (PSLF). Right now, 112 of 117 qualifying payments have been certified. My Direct Loans were serviced by ACS for 5 months and these are the 5 months that were not certified despite making these payments on time and under a qualifying plan. I wonder how many other PSLF loan foregiveness applicants are being denied because of ACS?!?
Robert Farrington says
If you have the record of payments (like a bank statement), you can appeal the count of loans. Submit the documentation to prove you made the paymnet.
Crystal says
I have student loans with Navient and ACS. I inquired with both of them about programs to help with repayment at the same time, I tried to make sure I was not showing as deliquent. Out of confusion I did get delinquent with ACS though. They send so many letters for any phone call that I got out of the habit of opening them. I didn’t realize I did a forbearance for Navient and not ACS.
The loan went to collections with a 3rd party and I started recieving calls. I wanted to get back to dealing with ACS because the 3rd party would only accept a large payment to get the process going and maybe after that I might be eligible for other options. Twice I sent dispute letters. I talked to the 3rd party (Delta Management) on the phone about my dispute. They always said they would check into but never did anything. Then a couple weeks I continued to get calls like I never disputed. In one conversation with Delta I was told that $30,000 in fees for them was added to my amount owed. I got a student loan so I could avoid predatory antics and not this was very predatory. I am in the process of seeing if I can consolidate with Navient (whom I have never had a problem) without going through ACS. I can’t contact ACS. Even the number above is no longer in use.
The loan is now in default and for the first time since I became an independent contractor (10 years ago) I was due to recieve a tax return. The IRS sent it to Educational Credit Management Corp. They only has an automated number that directs me to Delta Managment. What are disputes for? No one is looking at them. I contacted the Tax Payer Advocate and was told they can’t do anything. There is no one to talk to except Delta and they are not addressing disputes. I am at a loss.