Regarding this, are AES loans direct loans?
AES was started by the Pennsylvania Higher Education Assistance Agency (PHEAA) to service the Federal Family Education Loan Program (FFEL) while FedLoan Servicing is a Direct Loan servicer for the Department of Education. So if you have an American Education Services loan, it’s likely from the FFEL Program.
Also question is, can I pay AES loan with credit card?
AES does not accept credit cards or debit cards for payment. As an alternative to a debit card, you can consider using direct debit from your bank account, which may also earn you a discounted interest rate on your loan.
Did ACS become Conduent?
If you have ACS student loans, your servicer is now Conduent. Conduent acquired ACS Education Services in 2017, an acquisition that’s caused some confusion among borrowers whose student loans were serviced by ACS.
ACS Education Services joined Conduent Business Services in January 2017. Both ACS and Conduent have been the target of several lawsuits, complaints and fines over the years.
The loans AES services are either federal student loans owned by a guaranty agency or are private student loans owned by someone other than the federal government.
If AES is your loan servicer, you might have gotten something in the mail from them—and not known what it is. You may even have thought it was a scam. But, in fact, AES is a legit loan servicing company. It’s not unusual for people to have thousands of dollars in student debt—and not know who their loan servicer is.
Great Lakes is a U.S. Department of Education federal student loan servicer.
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.
Nelnet is a federal student loan servicer working on behalf of the U.S. Department of Education, the government agency that lends you or your child student loans.
There are three types of federal student loans:
- Direct Subsidized Loans.
- Direct Unsubsidized Loans.
- Direct PLUS Loans, of which there are two types: Grad PLUS Loans for graduate and professional students, as well as loans that can be issued to a student’s parents, also known as Parent PLUS Loans.
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.
Subsidized vs. Unsubsidized Loans: Only FFELP or Direct Stafford Loans may be “subsidized.” A “subsidized” FFELP or Direct Stafford Loan means the federal government pays the lender the interest that accrues on the loan while the student is in school at least half-time and during grace and deferment periods.