Xerox Education Services, formerly known as ACS, has a troubled history with errors in its student loan portfolio.
One of the country’s largest student loan servicers has agreed to pay $2.4 million to settle charges that it failed to process struggling borrowers’ applications for loan relief and harassed borrowers during the debt collection process.
Xerox Education Services, formerly known as ACS Education Services, “systemically” failed to properly process applications for the income-based repayment debt relief option, the attorney general’s office alleged. Some $400,000 of the settlement money will go to borrowers in Massachusetts who Xerox prevented from enrolling in the program, in which monthly debt payments are fixed at a percentage of a borrower’s income.
The settlement is the first of its kind between a state attorney general and...