BOSTON (Legal Newsline) — Massachusetts Attorney General Maura Healey announced Nov. 22 that ACS Education Services (ACS) will pay $2.4 million after allegations it failed to properly process struggling Massachusetts students’ applications for federal repayment plans intended to lower monthly payments.
The company also allegedly engaged in harassing debt collection practices.
ACS, a national loan servicer that handles millions of
student loan accounts nationally, purportedly charged excessive
late fees, failed to protect some active-duty service members and made excessive
“To address this student debt crisis, we need students to be
on repayment plans that will help them succeed, not fall further into debt,” Healey
“ACS failed to meet this standard and regularly undermined the opportunity
for students to access appropriate repayment plans. This conduct increases the
already high cost of education, damages credit and prevents students and their
families from achieving long-term economic security.”
Deputy division chief Shennan Kavanagh and assistant
attorneys general Samantha Shusterman and Jared Rinehimer, all of Healey’s
Consumer Protection Division, handled the case for the state. Arwen Thoman,
investigations supervisor in the Insurance and Financial Services Division,