NextStudent partnered with Affiliated Computer Services (ACS) in 2006 to outsource student loan consolidation processing, customer service and loan management. ACS provided electronic application workflows that reduced paperwork and improved turnaround. ACS was acquired by Xerox in 2010 and its services business became Conduent after a 2017 spinoff. The outsourcing model that benefited NextStudent then still applies today, but technology and regulatory expectations have advanced toward cloud-based, API-driven servicing and stronger consumer protections.
NextStudent's 2006 decision to outsource
In 2006 NextStudent chose Affiliated Computer Services (ACS) to handle its student loan consolidation process. NextStudent outsourced application intake, customer service and loan management to ACS to reduce internal paperwork and speed response times. At the time ACS was known for business process outsourcing and for adopting electronic application workflows that simplified processing for borrowers.What ACS provided
ACS handled consolidated loan applications, servicing functions and customer support on behalf of NextStudent. Its electronic application platform reduced manual steps and cut turnaround time, which improved operational efficiency for NextStudent and made it easier for borrowers to apply.Why the partnership mattered
The deal gave NextStudent the capacity to scale without hiring large internal teams. Outsourcing routine servicing and paperwork let NextStudent focus on borrower outreach and loan sourcing while relying on ACS for day-to-day servicing operations.Where ACS went next
Affiliated Computer Services was acquired by Xerox in 2010 and its business-process-services operations later became part of Conduent when Xerox spun off its services division in 2017. Those corporate changes reflect a larger industry trend: consolidation of outsourcing providers and a shift toward modern cloud and API-driven servicing platforms.How the servicing landscape has changed since 2006
Today, loan servicing emphasizes digital portals, APIs, automated verification and stronger consumer-protection controls. Many lenders and servicers that once relied on paper or legacy systems have migrated to more integrated, real-time systems. Outsourcing remains common for scaling servicing operations, but vendors and lenders must now navigate tighter regulations and increased expectations for transparency and data security.Takeaway
NextStudent's move to partner with ACS in 2006 illustrates a common strategy: use a specialist outsourcer to handle operational work so the lender can focus on customers and growth. The underlying advantages - reduced paperwork, faster processing and access to specialized IT - remain relevant, even though the vendor landscape and technologies have evolved.[Note: verification items follow the article.]
- Confirm whether NextStudent currently uses Conduent, Xerox or another servicer for loan servicing and consolidation (check NextStudent website or recent filings).
- Verify any awards or recognitions referenced historically for NextStudent if they will be cited in further reporting.
FAQs about Acs Loan Consolidation
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What happened to ACS after the partnership?
Does outsourcing still make sense for loan servicers?
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How did electronic applications change the process?
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