A loan servicer has agreed to pay nearly $8 million to resolve allegations that the company submitted some false claims.
"The United States expects servicers participating in federal loan programs to accurately report amounts owed to the Department of Education," said Acting Assistant Attorney General Brian M. Boynton of the Justice Department's Civil Division.
Conduent Education Services LLC, fka Xerox Education Services LLC, dba ACS Education Services LLC, is a contractor that serviced student loans for lenders under the Federal Family Education Loan Program.
The contractor agreed to pay $7.9 million to resolve allegations that it violated the False Claims Act by submitting or causing the submission of false claims to the Department of Education. "Holding loan servicers accountable is a top priority for the Biden-Harris Administration, so I am pleased that improper conduct at Conduent Education Services got the oversight and investigation it deserved," Under Secretary of Education James Kvaal said.
Prior to this settlement, CES paid $1.4 million to the Department of Education under a remediation plan to partially resolve the allegations and received a credit for that payment under the settlement agreement.
