Edu-Serv Technologies Inc., based in St. Paul, Minn., will discontinue servicing education loans made under the Federal Family Education Loan Program and portions of its private loan business by Dec. 31.
Company officials, who have an office at 1128 W. 2400 South, said the action is being taken because of smaller than anticipated FFELP and private loan servicing volumes that cannot adequately cover costs associated with servicing the loans.EduServ is a third-party servicer and currently services FFLEP and private loan portfolios on behalf of lenders, secondary markets and other holders. It also services campus-based loan programs for universities and colleges.
The decision impacts only FFELP and portions of its private loan business. The company will continue to operate its campus-based division in Winston-Salem, N.C.
UNIPAC Service Corp., Aurora, Colo., is working with EduServ to streamline the transfer of loans for those customers who select UNIPAC as their successor servicer.