Servicers Accused of Purposely Delaying Student Loan Consolidation Process

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A student loan borrower has filed suit against Conduent Education Services, LLC (formerly known as ACS, Access Group, Inc.) and Access Funding 2015-1, LLC over the loan servicers’ alleged failure to submit timely loan consolidation forms, robbing the plaintiff of “nearly a year of qualifying payments” toward a loan forgiveness program.

The plaintiff claims the defendants serviced nine of his student loans and filed an application to consolidate them, requiring the servicers to complete a Loan Verification Certificate (LVC) for each one. The defendants, according to the complaint, delayed submitting the documentation for “many months,” despite the plaintiff’s continuous follow-up calls. As a result, the suit alleges, the plaintiff lost “up to 10 qualifying payments” toward the Public Service Loan Forgiveness Program.

The complaint argues that the defendants’ conduct was a result of “systematic and internal issues,” noting the Department of Education’s warning that there could be “a disincentive for servicers” to perform their part of the consolidation process for lack of financial motivation.