ACS Becomes Primary Education Loan Servicing Provider for Student Loan Finance Corporation
Company Expands Student Loan Servicing Capacity with New Servicing Center
in Aberdeen, South Dakota
DALLAS, June 25 /PRNewswire-FirstCall/ -- Affiliated Computer Services, Inc. (NYSE: ACS) today announced a seven-year contract with Student Loan Finance Corporation (SLFC) to provide education loan servicing for SLFC's federally guaranteed and private student loan portfolio. SLFC is a secondary market for student loans, providing liquidity for financial institutions and low default rates for institutions of higher education. The total contract is valued at $67M. The contract between ACS and SLFC expands what has been a more than 10-year relationship and makes ACS the primary education loan servicing provider for SLFC. Under the terms of the agreement, ACS is converting the Federal Family Education Loan Program and private loan portfolio previously serviced by SLFC to the ACS loan servicing system. "It was very important to us that our loans and those of our lender clients be serviced at the level of quality that we ourselves were providing," said Norg Sanderson, president and chief executive officer for SLFC. "ACS stands out as a provider who delivers not only superior caliber student loan services, but also exceptional expertise combined with economies of scale derived from a leading-edge loan servicing and origination system." ACS will handle more than 240,000 borrowers on behalf of SLFC, delivering a comprehensive range of student loan services including inbound/outbound call center services, payment processing, entitlement processing, claim filing, pre-default collections, skip tracing and originations. It has opened a loan-servicing center in Aberdeen, South Dakota and will add approximately 130 SLFC employees to staff that center. This will enable ACS to expand its servicing center capacity while leveraging the significant expertise of SLFC loan servicing employees, said Richard K. Schnacker, senior managing director, ACS Vertical Markets. He said the strong work ethic of Aberdeen employees together with their industry expertise made the decision to open a center in Aberdeen an easy one. "We are committed to supporting the servicing and origination needs of our clients, and to working in partnership to determine how best to do so," said Schnacker. "ACS' financial stability and industry expertise form a solid foundation from which we provide meaningful support to our clients, and continue our commitment to the student loan business." Sanderson said that working with ACS will allow SLFC to reduce operating expenses while maintaining jobs for their excellent employee base in Aberdeen. "In a time of fluctuation in the student loan industry, ACS remains a strong and viable partner for those who are seeking to solidify their business," he said. About SLFC Based in Aberdeen, South Dakota, Student Loan Finance Corporation (SLFC) provides secondary market and servicing for student loans, and ensures that anyone who wants to pursue post-secondary education has access to timely, adequate financing and experienced helpers. SLFC works closely with students, as well as their lenders and schools, to alleviate education loan headaches. SLFC specializes in servicing the Federal Family Education Loan Program and alternative education loans. For more information, visit http://www.slfc.com. About ACS ACS, a global FORTUNE 500 company with 63,000 people supporting client operations reaching more than 100 countries, provides business process outsourcing and information technology solutions to world-class commercial and government clients. The company's Class A common stock trades on the New York Stock Exchange under the symbol "ACS." Learn more about ACS at http://www.acs-inc.com. The statements in this news release that do not directly relate to historical facts constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to numerous risks and uncertainties, many of which are outside the Company's control. As such, no assurance can be given that the actual events and results will not be materially different than the anticipated results described in the forward-looking statements. Factors could cause actual results to differ materially from such forward-looking statements. For a description of these factors, see the Company's prior filings with the Securities and Exchange Commission, including our most recent filing. ACS disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future event, or otherwise.RELATED LINKS
SOURCE Affiliated Computer Services, Inc.