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I have Never heard of a loan company reporting a customer to the credit unions for paying too much/too early on their loan? Yes, it's true, confirmed by phone. So here is the warning, if you can refi and get away from AES or any of their many companies Do IT. My son, I am the co-signer, paid his loan early and more than the minimum payment to help himself get out of this debt. According to AES, if you pat 5 days early or 5 days late it is considered by their guidelines and a LATE Payment!!! So my son paying in this manner for 3 years has a bad mark on his and MY credit. So now he is paying the minimum, on the effective due date, auto-drafted. The issue is now we start a new 48-month cycle to get this corrected so I can be removed as co-signing. BUT the credit marks stay. Red tape and a game for sure and AES couldn't care.
Consolidating my loans with AES was one of the worst decisions I've ever made. I'm not complaining to get anything because I know that AES is an unethical company. I also am on track to pay off my debt in the next few years, so this isn't sour grapes. I just want to warn others to NEVER do business with AES. Here's why. At this point, I've paid over $72,000 on $93,000 worth of loans, but I still owe $72,000. How can this be?? Well, it all started back in 2009 when I applied for income-based payments because I made $20,000 that year from my two part-time jobs. The economy had tanked in Michigan and I was not able to find a full time job. The only option for staying current with my loan—according to AES—was to put the loan in forbearance.
My income continued to be about $20,000 for a few years, but all that time, AES insisted that I should have been able to make standard payments on my student loans. Even when I was homeless, AES was sure I could make standard payments, and when I said I couldn't, forbearance was the only way to stop my loan from going into default.
This year I have paid over $16,000 on my loans. Ironically, quitting my low-paying teaching job, and starting my own business, which I could have done without a degree, has given me an infusion of cash to help knock out my student loan debt. But, even though I have paid more than twice the amount that is due for the year, I can't postpone the automatic debits. I did really well earlier this year, so I paid the bulk of the $16,000 before June. I was still making payments, but I wanted to do it on my own terms. The small interest deduction for automatic debit is something I want to keep, so I don't want to stop the direct debit altogether, but I thought since I had paid so much already this year, I would have control over when the debits were withdrawn. Turns out, that's not the case. Even though the student loan payments due for the year is $6,000, and I've paid $16,000, I can't postpone the automatic debit payments.
The lawsuit that the attorney general of Massachusetts won against AES details the systemic problems borrowers have experienced with this company. These aren't mistakes. Forcing borrowers into forbearance instead of offering income-based repayment plans keeps borrowers on the hook for longer, and it ensures that they don't have access to student loan forgiveness after 20-25 years of payments. This is exactly what happened to me, so I emailed the ombudsman at AES asking for an account audit. They emailed me back to say that no additional loans had been added to the original loan. For the record, I didn't say anything about that. I asked about the $19,000 of capitalization that had been added to my loan. I wanted to know why I hadn't been eligible for an income-based payment plan. Unfortunately, that question was not answered or addressed at all in the email I received.
After sending a second email asking for clarification, I received a response that said my loans had been in forbearance from 2007-2012. I was in school in 2007 and 2008, so that's not true. I also was able to use income-based payment plan for the first six months of 2009. Was capitalization added for that time period even though I was making payments? AES sent my payment history, which doesn't answer the questions I asked. This is another reason why I'd love to have an audit of my account, but AES refuses to provide one.
In addition to dishonest business practices, AES just plain does not care about their customers. I did not see any stoppage of income during the pandemic, but SO many people were downsized or they lost their jobs. AES used a loophole to ignore the CARES Act. So, regardless of what happened to borrowers during the pandemic, they needed to pay up, or take a forbearance. Don't do business with these people. They are extremely dishonest and unethical.
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When I started school in 2007 I applied for financial aid. Coming from a community college financial aid meant state aid. But, apparently with the vocational school, I was tricked into signing student loans, I was young so I didn't understand. This school had no entrance exam. The student loan that was apparently the original was Barclays something and AES bought the contract I guess. Well the interest won't stop accruing. I made my payments and had it on forbearance. I could have swore it ended in October, yet they ended it in July and I found out just today I am past due and they want almost $500, I started a chat with them and they said it ended in July, they didn't seem to care. I asked what can I do since I cannot afford it, they put what seemed like a copy and past about how I should apply for a Income driven payment. I was like ok, apparently I can no longer put it in forbearance because I did it too many times.
When it was on forbearance I paid what I could but it is never enough. 4 separate loans with their own interest is awful, I feel like it is a scam to get more money. I am not sure what to do now. I am trying to do the IDP but it needs me to mail all of this information. I explained the school closed and when I applied it was for government aid, they said, "Well we are a bank owned company." I hope they get shut down and all loans individuals have with them voided. If I could go back in time I would never have gone to that school at all and instead went to community college where it is Government based and not Bank owned.
Just found out I'm delinquent on my loans because they don't fall under the cares act. They never sent communication letting me know. They said I happened to be ahead in payments that's why it's just showing now.
American Education Services is robbing Americans of their hard-earned money. As others who have reviewed this company have noted, they are shady and provide no assistance to the borrower. I just recently found out that they do not fall under the Care Act, so during the pandemic, we did not get deferred interest even if they were federal loans. I have been out of college for almost 15 years and only borrowed $21,000 for school. I worked and got grants to supplement the cost. I have NEVER missed a payment on my loans or put them in forbearance and to this date, I have paid them $26,741.40 and $15K of that total is interest alone. They're saying I still owe them over $9K.
THIS IS WHAT IS WRONG WITH STUDENT LOANS IN AMERICA TODAY! There needs to be a cap on how these companies can charge interest on student loans. I would love to go back to get my master's degree, but I won't do it simply because of what I've gone through with undergrad. PLEASE SHUT THIS COMPANY DOWN!!
I had AES loans for over 27yrs. My original loan balance was $41,989.57 and additional $3,850 for 2 courses after the Master's degree. The total amount of loans at that time was $45,839.57. By the end of year 2000 the interest amount was $19,642.72 which made my total loan amount increased to $76,098.24. I paid off several of the smaller subsidized and nonsubsidized loans over the years. As years went by, I struggled to pay off loans, no matter what I paid the interest kept going. I was told in 2000 I consolidated my loans at 8.25% which I don't remember doing. My loans were in and out of forbearance and deferment since then. Now today, my loans has increased to $108,339.29. That's $62,499.71 interest added on a 45,839.58 student loan. No matter how much I have pleaded with them over the years, they simply say, "there's nothing we could do about it". These loans are designed to destroy young people rather than help.
Probably the worse thing I ever did was refinance with this shady company. Horrible company to communicate and deal with. They dont fall under the Cares Act so of course are not offering relief during the pandemic. They are semi quasi-government and hide behind that when it comes to making mistakes or lawsuits from what I hear. I hope President Biden passes the student loan payment forgiveness soon and cancels student loans and puts all of them on the unemployment line!!!! #cancelAES Cancel student loans put AES out of business!
So I get 2 emails about my credit being delinquent on Saturday morning. I pay my bills on time. My good credit destroyed over interest that I didn’t know was due. Less than 100.00. They reported on my credit report the full amount of the loan being delinquent. Interest was apparently due. No notification by mail or email. I thought student loan interest was 0% till end of year because of Covid. I can’t even create an account online my information they have isn’t correct. Can’t talk to anybody because it’s Saturday. My daughters account showing nothing due. She doesn’t even have the loan in her name and I can’t create on online account in my name. I plan on getting a loan through my bank if I can because my credit is now ruined on Monday and plan on never dealing with with company again. Shame on our PA government for allowing this company to operate.
I sent in a cashier's check for a pay off with their name as payee my information on the memo line including my account. There is no payment on my account. They can't find it which is FUNNY bc the cashier's check cleared on the 15th yet here it is the 18th and I'm being told NOW I have to prove THEY are the ones that cashed the cashier's check made out to them. That's stealing in my book. How would anyone else cash a check made out to them??? And now I have to put in MORE work to prove it. Ridiculous!!!!
First, this student loan servicing company does NOT fall under the CARES Act. They are a blood-sucking bank-owned company with their own rules. Sometimes they receive what you send, sometimes they don’t. Communication is poor, to say the least, unless you are late on your payments. Then, look out, robocall calls begin. They must get commissions on that. They are not helpful in helping you during tough times either. I had cancer twice and neither time did they help me with payments. Your payments DO NOT go towards the FEFL 120 payments and you’re done stuff because they are bank-owned and considered a private loan. They still report you to them though when you miss payments which risk your wages being garnished. Do yourself a favor and JUST DON’T. Stick to Federal student loans and only borrow what you absolutely must get. Pay it off ASAP. Don’t use these ya-hoos.
American Education Services Company Information
- Company Name:
- American Education Services
- 1200 North 7th Street
- Postal Code:
- United States
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