Are Aes Loans Eligible For Forgiveness

Millions of federal and private student loan borrowers have their loans serviced by American Education Services. If you have AES student loans, you might have inquiries regarding this organization and how it can support you during the repayment process. You should be aware of the following if you have student loans with AES.

Are private education

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loans eligible for this loan forgiveness? No. Private education loans are not eligible for debt relief. If you refinanced federal loans into a private education loan, the refinanced private education loan is not eligible for debt relief.

What is American Education Service?

The Pennsylvania Higher Education Assistance Agency (PHEAA) established AES as a student loan servicer and guarantor to manage FFEL Loans and private student loans. AES does not give borrowers student loans in its capacity as a servicer. Instead, while the account is active, it serves as a go-between for the loan holder and the borrower. When a borrower defaults on a federal student loan, AES steps in as a guarantor and agrees to cover the debt.

AES and FedLoan Servicing, two distinct businesses owned by PHEAA, are not equivalent. AES services FFEL Loans and private student loans. The Department of Education’s loans are managed by FedLoan, which also oversees the Public Service Loan Forgiveness Program.

Are AES student loans federal or private?

Private student loans and federal student loans made through the Federal Family Education Loan Program (FFEL) are serviced by AES for a number of organizations, including:

  • Coronado Student Loan Trust
  • Goal Financial
  • Key Bank
  • National Collegiate Student Loan Trust (NCT)
  • Private lenders like SunTrust Bank or PNC Bank frequently made loans under the FFEL Program. Despite the fact that banks made the loans rather than the Department of Education, they are federal student loans.

    Checking your account on the Federal Student Aid website, studentaid, is the best way to determine whether your AES student loans are federal or private. gov. You can view each federal student loan you took out once you log in. Compare that list against your loans with AES. Any student loan listed on AES but not studentaid. gov is a private student loan.

    AES Federal Student Loan Abbreviations

  • STFFRD: Subsidized Stafford
  • UNSTSD: Unsubsidized Stafford
  • CNSLDN: Consolidation
  • SUBCNS: Subsidized Consolidation
  • UNCNS: Unsubsidized Consolidation
  • CUBSPC: Subsidized Spousal Consolidation
  • UNSTC: Unsubsidized Spousal Consolidation
  • STCNFL: Regular Spousal Consolidation
  • SLS: Supplemental Loan for Students
  • GSL: Guaranteed Student Loan
  • What American Education Services can help you do:

    AES can assist you in examining your repayment options, such as: In addition to managing your online account where you can request tax forms, loan balance payoff letters, and billing and interest statements,

  • Lowering monthly payments on federal student loans by placing you in an income-driven repayment plan (IBR or ICR) and on private student loans by offering you a temporary interest rate reduction.
  • Qualifying for student loan forgiveness under various programs provided by the federal government, including Public Service Loan Forgiveness, Teacher Loan Forgiveness, and student loan discharge due to total and permanent disability and death.
  • Removing a co-signer after making consecutive qualifying student loan payments and the primary borrower demonstrating they have a good credit score and income.
  • Temporarily pausing payments with deferments and forbearances.
  • What American Education Services cannot help you do:

  • Consolidate student loans. The consolidation process turns FFEL and Perkins Loans into a Direct Consolidation Loan owned by the Department of Education. You can consolidate your loans for free at
  • Negotiate student loan settlements. Unfortunately, AES won’t waive any of the interest that’s been added to your account or agree to settle your student loan debt for the original loan amount or less if you pay the loan balance in full today. You have to default on student loans before you can negotiate a settlement. When you default, your account will be moved from AES to a collection agency. At that point, you should be able to negotiate a settlement.
  • Refinance loans for a lower interest rate. If you have a good income and a blemish-free credit report,student loan refinancing may allow you to get a new loan with a more extended repayment period, better loan terms, and a lower interest rate. Plus, some private lenders are allowing you to refinance and maintain many of the federal benefits you would lose if you refinance federal student loans.
  • AES Student Loan Forgiveness Programs

    Are AES loans eligible for loan forgiveness? The following student loan forgiveness programs may be available to borrowers of federal student loans serviced by AES:

  • Closed School Discharge: wipes out the balances for student loan borrowers who attended a school that closed while they were in attendance or shortly after they left.
  • Income-driven repayment: promises to discharge your remaining debt after making 25 years of payments under one of the IDR payment plans (e.g., the income-based repayment plan).
  • Public Service Loan Forgiveness: forgives the balance owed on Direct Loans if you work full-time for a government or nonprofit entity and make 120 qualifying payments. If you have federal loans with AES, you will likely need to apply for student loan consolidation to qualify for PSLF. For a limited time, the U.S. Department of Education is giving borrowers credit for payments made before the consolidation.
  • Teacher Loan Forgiveness: allows teachers working in Title I schools to eliminate up to $18,500 of federal student loan debt after 5 years.
  • Total and Permanent Disability: cancels your entire student loan debt if a medical doctor, or the SSA, VA determine that medical issues prevent you from working.
  • The private student loans provided by AES services are not eligible for loan forgiveness. But under various Department of Education programs, the federal student loans it services may be forgiven.

    Are my loans stuck with AES?

    The Department of Education sometimes moves loans from one servicer to another based on performance and contracts. The department is overhauling its servicing platform, following announcements from FedLoan and Navient that the companies were calling it quits on federal student loan servicing. The departures will cause more than 15 million borrowers to move to new servicers — a process that hasn’t in the past always gone smoothly.

    Here are two steps you can take to reduce account errors:

  • Download your payment history from your online account or ask your servicer to mail you a copy.
  • Update your contact information with your most recent address, phone number, and email address.
  • Before your loans are transferred to or from AES, you will be notified. Your options for student loan repayment and forgiveness will stay the same with the new servicer despite the changes. But the quality of customer service may be different.

    If you’re dissatisfied with AESs performance, you can move your loans to a new servicer by consolidating at

    Federal student loan servicers:

  • Aidvantage (formerly Navient)
  • Edfinancial Services
  • FedLoan Servicing
  • Great Lakes
  • Nelnet
  • OSLA
  • American Education Services — services Federal Family Education Loans only.
  • Default Resolution Group only handles federal students loans in default.
  • More info: How to Delete Student Loans From Credit Report Legally

    Will AES student loans be forgiven?

    It’s unlikely that the president will waive the federal student loan AES services. Joe Biden, the president, ran for office on a platform that included loan forgiveness. The Biden administration has announced loan forgiveness for several borrowers of student loans under current programs since taking office. He has not yet exercised his executive authority to eliminate a debt of $10,000 in student loans.

    It seems less and less likely that he will use that power as time goes on. But even then, since AES student loans are not owned by the University, they would not be discharged. S. Department of Education. The loans that AES provides are either private student loans that are not owned by the federal government or federal student loans that are owned by a guaranty agency.

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    How to make payments to AES

    Borrowers can access their accounts at and make payments online. They can also pay through the mobile app, by phone at 800-233-0557, or by mailing a check or money order payable to American Education Services to: American Education Services P.O. Box 65093 Baltimore, MD 21264-5093

    The simplest and most dependable way to make your payments on time to AES is through direct debit and autopay. Every month on a specific date, direct debit causes an automatic withdrawal from your bank account.

    AES’s parent company, PHEAA, has been subject to multiple lawsuits by states for allegedly mismanaging the PSLF program. For instance, in 2019, the New York attorney general sued the company, alleging it failed to properly inform applicants of the PSLF program’s requirements, resulting in a nearly 99% denial rate. PHEAA settled a lawsuit with Massachusetts’ attorney general earlier this year, which raised much of the same allegations.

    FedLoan Servicing recently declared that it would not be renewing its agreement with the Department of Education. AES has not made a similar announcement.

    About American Education Services

    Stafford Loans, Unsubsidized Stafford Loans, Federal PLUS Loans, and Federal Consolidation Loans are all types of student loans that are serviced by AES. In June 2010, the Obama administration ended the FFEL program. However, millions of borrowers have outstanding balances on those loans.

    AES is not a government agency. But it is a quasi-nongovernmental organization, as is its parent company, Pennsylvania Higher Education Assistance Agency. PHEAA was initially established as a state agency by the Commonwealth of Pennsylvania. However, the business is now privately owned and subject to little legal regulation.

    In addition to, AES and PHEAA run You Can Deal With It, a website that helps educate borrowers on their student loan repayment options.

    Call AES at 800-233-0557 from 7:30 a.m. to noon, seven days a week. m. to 9:00 p. m. ET. Additionally, you can contact American Education Services P by mail. O. Box 2461 Harrisburg, PA 17105-2461.


    Fax: 717-720-3916

    How to Complain About American Education Services

    Start by submitting a complaint to the AES directly if you’re experiencing problems with the company that you haven’t been able to resolve.

    Another option is to file a complaint with the Federal Student Aid Feedback Center.

    You can also file a complaint with the Department of Education’s highest customer service office, the FSA Ombudsman. Call 877-557-2575.

    You can file complaints about American Education Services if your problem is not resolved by:

    Need help with American Education Services? Let’s talk

    To discuss your options, call me for a free 10-minute consultation. I’ve spent years assisting individuals like you with their student loans.

    Let’s talk. I can assist you in figuring out how to successfully pay off your student loan debt.


    Do AES loans qualify for loan forgiveness?

    The private student loans provided by AES services are not eligible for loan forgiveness. But under various Department of Education programs, the federal student loans it services may be forgiven.

    Is AES considered a federal student loan?

    FFEL loans are processed by American Education Services (AES), a federal loan servicer. Although the FFEL program has been terminated, AES continues to assist borrowers with their repayments and also manages some private student loans on behalf of other lenders.

    How do I know if my loan qualifies for loan forgiveness?

    You must have federal student loans and make less than $125,000 (or $250,000 per household) annually to be eligible for forgiveness. Borrowers who fit that description may be eligible for a $10,000 debt cancellation. You may be eligible to receive up to $20,000 in forgiveness if you were also awarded a Pell Grant during your education.

    Can my AES loan be forgiven if Im fully disabled and have been for 10 years?

    If you are totally and permanently disabled, which is defined as being unable to work due to a physical or mental impairment that has persisted for at least five years or is anticipated to cause death, your student loans may be forgiven.