Credible takeaways
- American Education Services (AES) services both federal FFEL loans and some private student loans.
- As a loan servicer, AES helps borrowers with tasks like making payments, applying for deferment or forbearance, and managing repayment plans.
- AES has faced lawsuits over mishandled borrower requests and improper debt collection.
- The only way to change loan servicers with AES is by refinancing or consolidating, depending on your type of loan.
American Education Services (AES) is one of the largest student loan servicers in the country. It manages both federal and private student loans for millions of borrowers. If your loans are serviced by AES, here’s what you need to know about how it works, including how to make payments, what types of loans it handles, and what issues other borrowers have reported.
Current private student loan rates
What is American Education Services?
American Education Services (AES) is a student loan servicer created by the Pennsylvania Higher Education Assistance Agency (PHEAA) in 1963. It was originally established to manage loans through the Federal Family Education Loan (FFEL) Program, but now services some private student loans as well.
AES handles loan servicing for millions of students and thousands of schools, providing loan guarantees, financial aid processing, outreach, and other student aid services.
What does American Education Services do?
American Education Services is a student loan servicer, meaning it manages loans on behalf of other lenders. AES doesn’t issue loans — it handles billing, payment processing, and customer service for loans it acquires from the U.S. Department of Education and some private lenders.
In addition to collecting payments, AES helps borrowers with:
- Changing payment due dates
- Managing federal repayment plans, including income-driven repayment options
- Applying for loan discharge or forgiveness
- Exploring deferment or forbearance options if you can’t afford payments
- Operating You Can Deal With It, which offers advice on how to deal with common financial situations for college students and recent graduates
How to make payments on your AES student loan
If your loans are serviced by AES, you can choose from several payment methods offered by AES to make your monthly payments, including:
- Check by mail: You can mail a check to AES, but be sure to send it at least 5 to 7 business days before your due date to avoid late payments.
- By phone: Payments can be made over the phone during AES’s regular business hours, Monday through Friday. Phone payments are typically posted to your account within 2 business days.
- Mobile app: If you download the AES mobile app, you can make payments directly through the app. Payments submitted this way are credited the same day.
- Online: You can log in to your AES account to make a one-time payment or schedule up to 8 future payments in advance. Online payments are usually credited within 2 business days.
- Direct debit: You can sign up for automatic payments from your checking or savings account. This ensures your payment is made on time each month and may qualify you for an interest rate reduction, depending on your lender.
Refinancing your AES student loan
You can refinance a student loan serviced by AES, but what that means depends on the type of loan you have.
If you have an FFEL loan serviced by AES, refinancing would mean replacing it with a new private loan. This would make the loan ineligible for federal benefits like income-driven repayment, deferment, forbearance, and forgiveness programs. If you rely on those protections, refinancing may not be the right move.
If you have a private student loan through AES, refinancing simply means replacing your existing private loan with a new one from a different lender. You won’t lose federal protections because they don’t apply to private loans.
Refinancing your student loan could help you:
- Lower your interest rate.
- Reduce your monthly payments.
- Pay off your loan more quickly.
“Refinancing may not make sense if you can’t qualify for a lower rate than what you’re currently paying. If your credit score isn’t strong enough to qualify for a lower rate, I recommend that you apply with a cosigner with strong credit and a steady income to help you access better rates and terms.”
— Kelly Larsen, Student Loans Editor, Credible
AES reviews
Most student loan borrowers don’t get to choose their loan servicer. If AES manages your loans, it’s important to understand how it operates and where it may fall short.
Like many servicers, AES has received a wide range of reviews from borrowers. Some customers report positive experiences with customer service and account management. Others, however, have shared frustrations around billing issues, confusing communication, and difficulty getting accurate information from representatives.
You can browse borrower complaints and feedback through third-party sites like the Better Business Bureau, Consumer Affairs, or the Consumer Financial Protection Bureau.
While every borrower’s experience is different, it’s a good idea to stay on top of your account and keep records of any communication with AES.
Lawsuits against American Education Services
In 2024, the Consumer Financial Protection Bureau (CFPB) filed two lawsuits against Pennsylvania Higher Education Assistance Agency (PHEAA), which AES operates under.
The first lawsuit claims AES mishandled thousands of borrower requests between 2015 and 2021 — including forbearance, deferment, cosigner release, and loan forgiveness — often ignoring or delaying responses, especially during the COVID-19 pandemic.
The second alleges AES illegally collected payments on private student loans that had been discharged in bankruptcy. The CFPB says AES failed to identify these loans properly and continued to treat them as active debts. However, in February 2025, the CFPB dropped the case and will no longer pursue enforcement.
How to change loan servicers
If your loans are serviced by AES, your options for switching servicers depend on the type of loan you have:
- Private student loans: The only way to change servicers is to refinance with a new lender. This pays off your existing loan and replaces it with a new one, typically from a private company that will handle future servicing.
- Federal FFEL loans: You can consolidate your FFEL loans into a Direct Consolidation Loan through the U.S. Department of Education. This transfers your loans to a federal servicer and may give you access to additional repayment or forgiveness options.
How to contact American Education Services
AES has continuously evolved to meet the needs of its borrowers. You can reach AES online, by phone, or by mail. Their hours of operation are Monday through Friday, from 7:30 a.m. to 9:00 p.m. (ET).
- Email: To ensure borrower privacy and security, AES requires you to sign into your account to send a secure email to AES representatives.
- Phone: You can reach AES by phone at 800-233-0557.
- Mail: You can send general correspondence to American Education Services, P.O. Box 2461, Harrisburg, PA 17105-2461
- Social media: In addition to using their social channels to publish and distribute informative content for borrowers, you can reach out to AES representatives via Facebook and X, formerly known as Twitter.
- Live chat: Live chat is available within each student’s account, offering students an instant way to communicate with AES loan counselors.
FAQ
Is American Education Services a federal student loan?
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Is American Education Services a good loan servicer?
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What types of student loans does American Education Services service?
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Can I lower the interest rate on my AES student loan?
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