American Education Services (AES) is a federal loan servicer that processes FFEL loans. While the FFEL program was discontinued, AES still handles borrowers in repayments, and it also services some private student loans for other lenders.
Also to know is, are AES and FedLoan the same?
Are AES and FedLoan the same? AES and FedLoan Servicing are two different companies that are owned by PHEAA. AES services FFEL Loans and private student loans. FedLoan manages loans held by the Department of Education and administers the Public Service Loan Forgiveness Program.
Thereof, is Navient a good loan servicer?
Twelve million federal student loan borrowers have their loans serviced by Navient (previously part of Sallie Mae, the well-known private student loan lender, but split as of 2014). … In fact, we asked people to rate their experience including Navient complaints, and the average score was 2.7 out of 5 stars.
Is Navient going out of business?
Navient is leaving the business while under fire from the Consumer Financial Protection Bureau, which sued it in 2017, claiming that the company had made it difficult for borrowers to repay their loans. … But Navient was already set to end its federal loan services at the end of the year.
By the end of 2021, Navient, PHEAA (also known as FedLoan Servicing) and Granite State will no longer be managing federal student loan products. During this transition, the loans will be transferred to a new servicer, but the details of the loans themselves will remain the same.
Federal student loan servicers, such as Nelnet and Navient Corp., are companies that collect payments, respond to customer service inquiries and perform other administrative tasks on behalf of the U.S. Department of Education.
Currently, Nelnet is under contract with the Department of Education through December 2021. After December 2021, Nelnet’s contract is unlikely to be renewed and its borrower portfolio will be transferred to another loan servicer.
OSLA’s staff are consistently rated in the 90th percentile with good customer satisfaction ratings. It was also recognized as an Exceptional Performer by the U.S. Department of Education. OSLA has serviced the loans of over 130,000 student loan borrowers.
The Pennsylvania Higher Education Assistance Agency (PHEAA) conducts its student loan servicing operations as FedLoan Servicing for federally-owned loans and as American Education Services ( AES ) for non-federal assets.
Your loan servicer typically processes your loan payments, responds to borrower inquiries, keeps track of principal and interest paid, manages your escrow account (if you have one). The loan servicer may initiate foreclosure under certain circumstances.
Due to the government’s new Next Gen Business Process Operations initiative, Great Lakes and its parent company Nelnet will no longer service federal student loans after December 2020. If Great Lakes is your current loan servicer, The Department of Education will assign you a new loan servicer.
Fixed interest rates are 2.75% – 6.04% APR (2.50% – 5.79% APR with Auto Pay discount). Starting variable interest rates are 2.13% – 5.89% APR (1.88% – 5.64% APR with Auto Pay discount). Variable rates are based on an index, the 30-day Average Secured Overnight Financing Rate (SOFR) plus a margin.
Instead, Federal Student Aid (FSA), which is part of the U.S. Department of Education, will determine the final allocation of student loans among these four student loan servicers.
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