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ACS Education Services class action overview:
- Who: ACS Education Services has made a $3.25 million settlement deal with student loan borrowers.
- Why: The settlement would end claims the company failed to provide required certificates to student loan borrowers after informing them they could prepay their loans at any time.
- Where: The proposed settlement was filed in a New York federal court
Student loan lender ACS Education Services has agreed to a $3.25 million settlement with borrowers to end claims it made false promises about the terms of its student loans.
In a memorandum filed by a certified class of student loan borrowers July 22 in a New York federal court, the borrowers asked the court to approve the deal.
Plaintiff Jeffrey Chery said in the memo that the deal with Conduent Education Services—which does business as ACS—is an “excellent” result for the class.
Claims first filed in 2018
The borrowers first filed the class action lawsuit against ACS in 2018, alleging it “deceptively informed” borrowers issued loans under the Federal Family Loan and Education Program (FFLEP) that they could prepay their loans “at any time,” including through consolidation.
However, when student loan borrowers submitted requests to consolidate, the company allegedly did not timely provide loan verification certificates that were necessary to facilitate the requests.
“Plaintiff claims this left borrowers unable to consolidate and avail themselves of federal benefits, including under the Public Service Loan Forgiveness program.”
The settlement would benefit all student loan borrowers who submitted an application to consolidate one or more loans under the FFLEP into a direct, consolidated loan since Jan. 18, 2012, but didn’t receive a loan verification certificate within 10 days.
Chery said the class includes nearly 3,000 borrowers. Class members who have claims of less than $750 will automatically receive a cash award from the net settlement amount without needing to submit a verification. Those with claims greater than $750 must submit a timely and valid verification to receive a cash award.
Chery is seeking a service award of $25,000, while his lawyers are seeking up to about a third of the settlement fund.
Meanwhile, in January, one of the country’s largest student loan companies Navient inked a $1.85 billion deal to settle claims it preyed on students to write loans that saddled them with crushing debt that was near-impossible to pay off.
Just a few months later, in June, the U.S. Department of Education (DOE) agreed to a class action settlement which will cancel the student loan debt of around 200,000 students whose claims had been stalled.
Have you had problems with your student loan provider? Let us know your experience in the comments!
The plaintiffs are represented by Fletcher W. Moore and Justin A. Kuehn of Moore Kuehn PLLC and Lawrence P. Eagel of Bragar Eagel & Squire PC.
The Conduent Education Services Class Action Lawsuit is Chery v. Conduent Education Services LLC et al., Case No. 1:18-cv-00075, in the U.S. District Court for the Northern District of New York.
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17 thoughts on$3.25M student loan class action over prepayment settled
Please add my claim in this class action. I have excessive student loan debt.
Is there any way of becoming a part of AES student loan lawsuit? I have been with them for years and they’re always putting me in forbearance and I just found out yesterday whenever I was trying to find out about my consolidation over the Mohela that they gave me excessive for balances. I told the gentleman I was speaking to on the phone that I never requested forbearance’s several times they were always putting me in forbearance even when I was consolidating they put me in forbearance for 3 months. I have always felt like they were not there to help me I was a single mom with three children barely surviving and telling them my situations and they would always give me the solution of deferment or forbearance and I just don’t feel like it’s right
AES informed me that it was not required to comply with federal forgiveness for public service guidelines years ago. Consequently they didn’t record/report my payments as required. A few years into my payments I got frustrated enough and called the Department of Ed. DofE confirmed that AES was lying but instead of addressing the violation of federal guidelines they told me to start my eligibility clock and report the payments myself. I was cheated. It’s a blessing to learn that others are not.
Please add me
Aes set my daughter in a repayment plan because she lost her job and now we find out the messed up and kept charging her normal payments and reported to the credit bureau of late payments- when they told us not to make any payments- now we owe $$$$$$
Please add my claim in this class action. I have excessive student loan debt.
Add me
Please add me. I have lots of student loan debt and can’t afford it. I am not on poverty level.
now on poverty level
Add me
I’m still receiving emails about loan repayment from nelnet student loan
Add me please. I feel my loan record is inaccurate and misleading.
Conduent Education Services Class Action Lawsuit is Chery v. Conduent Education Services LLC et al., Case No. 1:18-cv-00075, in the U.S. District Court for the Northern District of New York
I have had this issue.