Consolidate College Debt with AES
One of Many Services Offered
**Please Note**: The Federal Family Education Loan Program has been replaced by the Direct Loan Program. As a result, a few of AES’s services may be discontinued.This page has been retained for archival reference.
American Educational Services (AES) provides a stable of federal and private student loans as well as federal and private consolidation loans. For customers with federal loans the AES consolidation loan provides repayment of federal guaranteed loans, such as the Stafford, Perkins, and PLUS loans, and returns a single loan that effectively cuts your monthly expenses in half.
Federal Consolidation Program as Offered by AES
The federal consolidation loan was added to the Federal Family Education Loan Program (FFELP) in consideration of the growing inability among Americans to handle their student loan debt. AES, an FFELP lender, is subject to some non-negotiable terms in their design of the federal consolidation loan. Federally regulated criteria include:
- Fixed interest rates have been put in place since July 1, 2006. Rates are determined based on a “weighted average” of the loan interest rates as of the date on which you apply for the consolidation. This average is rounded up to the next 1/8 th percent. Interest rates will not exceed 8.25.
- Borrowers under the federal consolidation loan program are not subject to a credit check.
Additional terms of the AES federal consolidation loan include a number of borrower incentives. Added incentives allow lenders the flexibility to distinguish their loan program from that of competitors’:
- Consolidate loans within the new-grad grace period and you earn an immediate .60% interest rate deduction.
- Apply to have monthly payments automatically deducted from your checking account and an additional .25% reduction is applied to your interest rate.
- Depending on total loan financed you may have up to 30 years to repay, but there is no fee for early repayment.
AES Private Loan Consolidation
A private consolidation loan is subject to the terms established by the lender. AES’s Private Access Consolidation Loan requires borrowers be private loan customers of AES. Criteria for the loan include:
- You must have at least $7,500 in private educational loans to apply.
- Interest rates are variable.
- A 1% loan disbursement fee applies.
- Loans in excess of $20,000 may have a 30-year repayment term applied, but there are no fees for early repayment.
- Loans in default are not eligible for private consolidation.
Private Loan Designed for Outside Borrowers
The Key Education Consolidation Loan is offered thanks to the partnership between AES and Key Bank. This particular consolidation loan is suited to borrowers who wish to use AES lending services, but have not previously held private loans with the company. Borrowers are subject credit checks and may opt to use a co-borrower. Other criteria include:
- A minimum debt load of $7,500 is required.
- Interest rates are variable and adjusted on a quarterly basis.
- Loans that have defaulted are not eligible to be consolidated.
- Married couples with mutual private student loans may consolidate all into one.
If you have questions about consolidating, talk directly to a loan advisor before you complete an application.