American Education Services (AES) Review 2022

American Education Services (AES) is a private and federal student loan servicer that handles student loans from a wide variety of lenders. If you have a Federal Family Education Loan, there’s a good chance it’s serviced through AES.

You don’t typically get to choose your loan servicers. However, if you ended up with AES and have questions, you’re in the right place. Let’s walk through everything there is to know about American Education Services.

What Is AES?

AES, or American Education Services, is a student loan servicer. Student loan servicers are companies that handle the repayment and administration of student loans for lenders. They don’t typically offer loans themselves.

AES was founded way back in 1963 to help service the Federal Family Education Loan Program (FFELP) and has been operating ever since. These days, it services both private student loans and federal student loans to millions of students at thousands of schools.

In addition to loan servicing, AES also provides several other financial services, including loan guarantees, financial aid processing, and various student aid and outreach programs.

How Does AES Work?

American Education Services doesn’t offer loans itself. Instead, as a student loan processor, it handles the billing and various other services around student loans. AES works with both federal student loan providers, such as the U.S. Department of Education, as well as private lenders.

In practice, that means that if your loan is handled by American Education Services, it could be either federal or private. This has implications for your repayment options since federal loans like the Federal Family Education Loan or Direct Subsidized Loans have special payment plans available.

In either case, though, you’ll receive your statements from AES, and then make your loan payments to them each month. The company offers a number of payment options, which we’ll discuss later in the article.

AES offers most of the basics you’ll find with student loan servicers. They’ll take your payment in a number of ways, and will generally work with you if you need a little help making your payments.

Let’s walk through each of these services in detail and see how AES stacks up.

Choice of Payment Methods

As mentioned above, you can make your AES student loan payments with a variety of methods: direct debit, online payments, payments via the American Education Services mobile app, payment over the phone, payment by mail, and even payment via third-party bill pay services. Let’s run through each of these methods:

Direct Debit Payment

Direct debit payments are automated monthly payments on a schedule. Simply set this up on the American Education Services website and the amount of your monthly student loan payment will be automatically debited each month, even if the due date falls on a weekend or holiday.

This is handy because you don’t need to worry about remembering to make the payment. These payment plans also sometimes qualify for a small interest rate reduction (up to 0.25%), which is always nice.

Online Payment

If you don’t like the automated nature of the direct debit option, you can still pay electronically online on your own terms. You’ll need to input your bank account details, but you can save this information for future monthly payments, so you don’t need to input it every time.

The disadvantage of these online payments is that you need to remember to actually log in and make the payment. However, that’s also the big advantage — not everyone is comfortable with automatic withdrawals, and some pay schedules aren’t regular enough to make them realistic. This gives you another relatively simple option.

Payment Via Mobile App

If you prefer to handle things on your smartphone, that’s also an option with American Education Services. In fact, you may prefer this option simply because the AES mobile app is surprisingly easy to use. Just log in (you can use FaceID or a fingerprint scanner if your phone has one), head to the “Pay” tab, and enter your details. You can also use the app to view your student loan details and get an idea of where your account stands.

Finally, the app makes it easy to set up automatic payments. This is handy if you want to worry about your payments less or take advantage of that interest rate reduction.

Payment By Phone

If you prefer to make your student loan payments over the phone (or don’t have a choice), that’s an option with AES. Call 1-800-233-0557 and provide the requested information. You’ll need your AES account number and date of birth to identify yourself, along with your bank account number and routing number for the payment. Fortunately, you can save the bank information, so you’ll only need to provide it once.

The caveat with AES phone payments is that your payment will be spread evenly across all of the student loan debt on your account, so you’ll have to make sure you pay enough to cover the minimum required payments. If you only want to pay on a single loan, you’ll have to use the online method.

Payment Via Mail

If you’re feeling really old-fashioned, you can mail your payment in via check or money order. Make the check out to American Education Services and address it to:

American Education Services, P.O. Box 65093, Baltimore, MD 21264-5093

The check should include your AES account number.

Third-party Bill Pay

Finally, you can make your student loan payments through a bill pay service, such as those offered by many banks. If you’re going to go this route for making your payments, just note that AES can’t offer any interest rate reductions or other incentives for payments made through third-party services. It’s also important to make sure the bill pay service has the correct address for AES.

Payment Reduction Options

If you can’t make your monthly payments, or things are a little tight, you have options. However, which options you have available depends on whether you have private student loans or federal student loans. Unfortunately, there’s not much AES can do about this.

If your American Education Services student loans are through private lenders, you can contact AES directly to discuss repayment options. It’s not guaranteed, but sometimes you can negotiate a payment plan similar to the federal options, which we’ll get into next. At the very least, you might be able to put a pause on payments until you can get into better financial shape (see the section on deferment and forbearance below). It never hurts to ask.

Student loan borrowers with a federal loan have a lot more options. The federal Standard Repayment Plan is 10 years of fixed payments. However, federal loans are eligible for a number of repayment plans, including the following:

Graduated Repayment Plan

The Graduated Repayment Plan lets student loan borrowers make smaller payments towards the beginning of their loan repayment period, with payments increasing over time. The idea is that your income is more likely to be lower when you first start repaying, whereas over time the payments increase to match your income.

Income-Based Repayment (IBR)

The IBR program bases your payments around your income and family size. Depending on when you secured the loan, your payment will be either 10% or 15% of your discretionary income.

Additionally, the loan will be eligible for forgiveness after 20 or 25 years (again, depending on when the loan was secured). This is an excellent option for families with lower incomes.

Revised Pay As You Earn Repayment Plan (REPAYE)

The REPAYE plan is somewhat similar to the IBR plan, but with fewer restrictions. With this plan, you’ll make payments of 10% of your discretionary income.

This plan also offers loan forgiveness after a period of time — 20 years for an undergraduate student loan, and 25 years for graduate or professional student loans.

Income-Contingent Repayment (ICR)

ICR plans allow you to pay either 20% of your discretionary income or what you would pay on a fixed, 12-year repayment plan — whichever is lower. Federal student loans under an ICR plan are eligible for forgiveness after 25 years.

Deferment and Forbearance Options

American Education Services student loans are also eligible for deferment or forbearance. These two options are available for all federal student loans and some private student loans.

Deferment

This is a process where payments are temporarily stopped on your loan account. Your loan may or may not accrue interest during the deferment period, depending on whether it’s federally subsidized.

Forbearance

This is similar to deferment, but you are always responsible for the interest that accrues during forbearance.

Qualifying for either deferment or forbearance generally requires that you have a significant financial hardship, such as unemployment, and that you’re enrolled at least half-time as a student. If you have a private student loan, you may have additional requirements.

Other AES Services

AES offers a number of other services, including financial aid services for schools and various solutions for lenders, such as a library of common forms.

AES Review: The Pros and Cons

These pros and cons can help you understand more about AES since you don’t really have a choice in selecting a loan servicer.

Frequently Asked Questions About American Education Services (AES)

If you still have questions about AES, don’t worry — we’ve got answers.

Penny Hoarder contributor Dave Schafer has been writing professionally for nearly a decade, covering topics ranging from personal finance to software and consumer tech.