Introduction
The Pennsylvania Higher Education Assistance Agency (commonly known as PHEAA) is the parent company of AES and a leading provider of federal student loan services. An extensive quantity of federal student loans is included. The Office of Federal Student Aid reports that as of June 2021, PHEAA served more than $400 billion in federal student loans belonging to more than 8.5 million borrowers.
Through AES and FedLoan Servicing subsidiaries, PHEAA can offer nationwide student loan services. Though they share a parent company, AES and FedLoan are two separate student loan servicers. PHEAA's private and federal student loan portfolios are managed by AES, responsible for the FFEL Program before it was phased down. Regarding federally owned student loans, FedLoan Servicing is the company to contact. This includes Direct Student Loans.
Is American Education Services A Good Loan Servicer?
American Education Services and its parent firm PHEAA had 1,745 complaints lodged against them in the CFPB's Complaint Database in 2021. The PHEAA has also been the subject of several class action lawsuits. The plaintiffs in these cases claim that PHEAA violated their civil rights by concealing information about the eligibility conditions for the Public Service Loan Forgiveness programme, changing grants into loans, and prolonging the payback durations of student loans. Still, despite all of this, PHEAA's government contract was renewed until 2022.
What To Consider Before Refinancing Aes Student Loans
To lower the monthly cost of their American Education Services student loans, borrowers may be interested in refinancing their loans to a lender offering a lower interest rate. The fixed interest rates offered by the federal government might be both beneficial and detrimental. However, refinancing is the way to go if you want to switch interest rates on your student loans.
Applying for a new refinancing loan through a student loan refinancing firm is the procedure through which existing student loans can be refinanced. Many different businesses and banks provide this service or provide refinancing. If everything goes right, refinancing can save you hundreds of dollars and provide you with a lower interest rate and loan conditions.
Review Your Financial Situation Before Contacting AES
Now, take a look at your bank balances and debts. You may wish to get in touch with AES and request a deferment or forbearance if you are having temporary financial difficulties making your loan payments.
If you have a federal loan administered by AES and anticipate financial hardship for the foreseeable future, you can learn about your repayment alternatives there. You could have fewer options if you're applying for a private loan. Debt consolidation and debt settlement are the only two options available. (Unlike federal loans, for which there are repayment schemes, private loans do not have such options).
What Can American Education Services Help You With?
If you need assistance with repaying your student loans, AES is here to help.
- One's account can be accessed to make changes, get essential tax documents, and see relevant billing and interest statements.
- It is possible to automate your student loan payments, enrol in income-driven repayment, modify your payment settings, postpone or accelerate your payments, and pay off your loan early.
- Deferment and forbearance, lower payments, postponing payments, and federal debt consolidation are all options available through financial hardship programmes.
- The Public Service Loan Forgiveness (PSLF) programme, the Teacher Loan Forgiveness (TLF) programme, and the Military Spouse Loan Forgiveness (MSLF) programme are all examples of loan forgiveness options.
How To Get Information About Your AES Student Loans
It's simple to verify whether or not AES is your student loan servicer, even if it's been a while since you took out loans. To keep track of your financial aid, including federal student loans, you should sign in to the National Student Loan Data System (NSLDS). Your FSA ID gives you access to your student loan balances, repayment histories, and servicer information. If you have an AES student loan and check your credit reports, you should find a notation that AES has reported your loan information to the credit reporting companies.
What If I'm Having Trouble Paying AES?
Understanding your repayment alternatives is crucial if you are experiencing financial difficulties. The repayment choices available will vary depending on whether you have a federal or private loan, all managed by AES. When NCT is the lender, the loan is considered confidential. However, if you are still unclear, you can check the NSLDS to verify if your loan is included.
Conclusion:
Loans for Federal Family Education Use (FFEL) and some private student loans are serviced by AES. If AES is your loan servicer, you can only change servicers by refinancing or consolidating your loans. Neither AES nor the Pennsylvania Higher Education Assistance Agency (PHEAA) is a government agency and private business.
