ACS Student Loan Lawsuit


The state of Massachusetts filed a class-action lawsuit against ACS Student Loans last week. The case was brought against the lender for allegedly steering borrowers into unsuitable repayment plans. ACS was alleged to have put borrowers in “forbearances,” which essentially allow borrowers to delay making payments for a certain period. But forbearances often increase the cost of the loans. In addition, ACS steered a large number of borrowers into forbearances, which only temporarily defer payments. Furthermore, these pauses can be extended for a shorter time, increasing the loan’s cost.

The ACS Student Loan lawsuit is centered on a problem that arose from the way ACS serviced loans.

The company failed to inform borrowers about their options for consolidation, which forced borrowers to delay consolidation for three years. In addition, borrowers potentially lost valuable years of qualifying service for Public Service Loan Forgiveness, as well as other better repayment options. Whether the lawsuit is successful depends on the facts surrounding the ACS Student Loans case.

The department also aims to protect the consumer by launching an investigation into ACS’s practices. The Department of Education and the Consumer Financial Protection Bureau have yet to comment on the case. However, they did confirm that the ACS Student Loans lawsuit has merit. This action is an attempt to regain the trust of borrowers. Moreover, a class-action suit filed against ACS Student Loans has the potential to reach a huge settlement for borrowers.

The U.S. Consumer Financial Protection Bureau is currently investigating ACS.

ACS was found to have failed to properly process repayment changes. It lacked the proper system and manpower to handle changes in the loans. Ultimately, the CFPB and ACS reached a remediation plan in 2015. Under the plan, the ACS will adjust the loans and make restitution to borrowers who were impacted by these errors.

In addition to the misinformation, ACS also failed to provide its borrowers with information that would enable them to enroll in income-driven repayment plans. This led to a delay of up to three years of their repayments. In addition, ACS misrepresented the eligibility requirements for public service loan forgiveness, which means that a federal student can receive a debt cancellation after 10 years of on-time payments. The borrowers benefited from this decision.

A lawsuit against ACS has been filed against the company for mishandling student loans.

The Department of Education transferred many of its student loans to other services to prevent further problems. Because of this, the government has shielded ACS from state consumer protection laws. The Department of Education has not responded to the complaint. Further, the ACS Student Loans lawsuit is a class-action suit against the company for wrongfully charging late fees.

The ACS student loan lawsuit claims that the lender misrepresented the available options for loan consolidation and improperly prevented borrowers from pursuing them. The company failed to provide borrowers with the necessary account information to help consolidate their loans, which could have helped them qualify for programs such as Public Service Loan Forgiveness and the College Repayment Guarantee program. These benefits were lost by ACS. Instead, the company has agreed to settle the case.

In the case of ACS student loans, the plaintiffs sought to avoid paying interest on their student loans.

Because of this, a bankruptcy case against the ACS Student Loans group could result in a million dollars in damages. A broader class action can be filed by consumer-loan litigation. The plaintiffs in the ACS student loan lawsuit claimed that the firm had misrepresented the PSLF benefits to borrowers.

The lawsuit is based on the fact that ACS misled borrowers about the availability of income-driven repayment plans that would have lowered their monthly payments and eventually lead to loan forgiveness. In addition, ACS also hid information about eligibility for the Public Service Loan Forgiveness program, which allows borrowers to cancel their federal student loans after ten years of on-time payments. The settlement imposed by the court against ACS was a huge victory for the plaintiffs in the class-action lawsuit.

2 thoughts on “ACS Student Loan Lawsuit

  1. I have no record of my payment to ACS from 2002-2016, this maybe the cause of me to be denied student loan forgiveness. I have requested, via service rep through Navient, the records because they are the loan provider I refinanced through. On their web site they show me starting my loan payment as of 2016. no records before that, loan service provider said she will send a request to get the records and I have to wait, and they will physically have mailed me. She sounded like she wasn’t even sure she could get them. I have sent a FOIA via email to the department of education for the missing records. Do you have information to me I’m beyond frustrated? getting through to PSFL, is very difficult to discuss this with them after my denial letter. The hold time extends into hours, and I eventually hang up

  2. I recently found out that I am not eligible for PSLF or the Biden cancelation because Navient claims that these are private loans! Now Navient is telling me I should refinance with Mohela ? to get qualified for PSLF. I don’t trust any of these servicers and the US government should be ashamed about the lack of any accountability for these programs!

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