If a bill or a credit report line says “AES,” your loan is serviced by American Education Services, the national servicing arm of the Pennsylvania Higher Education Assistance Agency. AES doesn’t lend money and it doesn’t decide most of the rules. It collects payments and processes requests for two kinds of loans: older federal FFEL loans owned by banks and other private lenders, and private student loans owned by banks, state agencies and investment trusts. Which kind you have decides almost everything that follows.
That distinction matters more right now than it has in years. The federal student loan system changed sharply on July 1: a new Repayment Assistance Plan launched, consolidation rules shifted, and a 1% autopay rate cut arrived. Most of those changes were written for Direct Loans, and many of them don’t reach a loan sitting at AES. This guide shows how to tell which loan you have, what you can still do with it, where the new rules help or hurt you, and what to do if you’re behind. The calculator compares your FFEL payment on Income-Based Repayment with what you’d pay on the new plan after consolidating.
Nine Straight Answers for AES Borrowers
The questions people ask most about loans at AES, answered first. The details and trade-offs follow.
Partly. AES services federal FFEL loans owned by private lenders, plus private loans. It no longer services loans owned by the Education Department.
Log in to StudentAid.gov. If the loan appears there, it’s federal; if it doesn’t, it’s almost certainly private.
Not as an FFEL loan. You’d have to consolidate into a Direct Loan, and your PSLF count would start from zero on that new loan.
Only after consolidating an eligible FFEL loan into a Direct Loan. Parent PLUS loans and private loans can’t use it.
No. That temporary cut covers Direct Loans made after July 1, 2012. FFEL and private loans follow their own autopay terms.
Income-Based Repayment, which sets payments at 15% of discretionary income for FFEL borrowers and forgives what’s left after 25 years.
The Education Department’s pause covers loans it holds. A defaulted FFEL loan held by a guaranty agency isn’t covered and can still be garnished.
Your options narrowed sharply on July 1. Fixed plans, deferment, forbearance and discharges remain; income-driven plans are largely out of reach now.
Call 800-233-0557, Monday through Friday, 7:30 a.m. to 9 p.m. Eastern, or manage the account online at AESSuccess.org.
First, Figure Out Which Loan AES Is Servicing
Every decision on this page depends on one fact: is your AES loan federal or private? It takes about five minutes to find out.
Check StudentAid.gov
Log in with your FSA ID and open your dashboard. Every federal loan you’ve ever had appears there with its type and disbursement date. If you see loans described as “FFEL Stafford,” “FFEL PLUS” or “FFEL Consolidation” and the servicer is listed as AES or PHEAA, those are federal FFEL loans. If a loan AES bills you for doesn’t appear anywhere on StudentAid.gov, it’s a private loan.
Read the AES account page
Your AESSuccess.org account lists the lender or owner of each loan. A bank name, a state loan agency or an entity named something like “National Collegiate Student Loan Trust” points to a private loan. A guaranty agency named on the loan record points to FFEL.
Pull your free credit reports
Student loans serviced by AES often show up with names that start with “AES/” followed by a shortened owner or program name. The suffix can hint at the owner, but don’t rely on it alone; confirm with steps 1 and 2. Reports are free weekly at AnnualCreditReport.com.
When we went through Federal Student Aid’s current repayment-plan eligibility chart line by line, the clearest finding was how differently the loan types are treated. FFEL Stafford loans and FFEL Consolidation loans without a parent loan inside can use IBR right now and can reach the new plan only after consolidation. FFEL PLUS loans made to parents can’t use IBR, ICR, PAYE or the new plan, and an FFEL Consolidation loan that contains a parent loan is shut out of all four. Private loans aren’t on the chart at all. Two borrowers both paying “AES” can be in completely different worlds.
What Changed on July 1, and What It Means at AES
The federal reconciliation law signed last summer rewrote student loan repayment. Most headlines describe Direct Loans; here’s how each change lands on an AES account.
The Repayment Assistance Plan. RAP sets payments at 1% to 10% of adjusted gross income, stepping up one percentage point for each $10,000 of income and topping out at 10% above $100,000. Payments drop by $50 a month for each dependent but never fall below $10. If an on-time payment doesn’t cover the month’s interest, the unpaid interest is waived, and if the payment reduces principal by less than $50, the government adds a matching principal payment of up to $50. Anything left is forgiven after 30 years. RAP is only for Direct Loans, so an FFEL borrower at AES reaches it only by consolidating, and parent loans can’t use it at all.
The consolidation line. A Direct Consolidation Loan made on or after July 1 can be repaid only under RAP or the new Tiered Standard plan, which sets a fixed term of 10 to 25 years based on the balance. The older income-driven plans, IBR, PAYE and ICR, are closed to it. That is the most important change for AES borrowers, because consolidation used to be the doorway to more and better plans. Now it’s a one-way trade into a single income-driven option.
The autopay rate cut. Since July 1, borrowers with eligible Direct Loans who use autopay get a full 1 percentage point off their rate through June 30, 2028, up from the old 0.25%. The Education Department extended the enrollment deadline to December 31. The cut applies to Direct Loans made on or after July 1, 2012, so a commercially held FFEL loan at AES doesn’t qualify. Ask AES whether your loan’s owner offers its own autopay discount; many lenders historically offered 0.25%.
The end of SAVE. A court order ended the SAVE plan in March. SAVE was only ever available on Direct Loans, so if all your loans are at AES you weren’t on it. If you also have Direct Loans with another servicer and were on SAVE, watch for the 90-day notice to pick a new plan; if you don’t choose, you’ll be placed in a fixed plan.
Should You Consolidate Your FFEL Loan Out of AES?
Consolidation moves an FFEL loan into a new Direct Loan with a federal servicer. It used to be an easy yes for many borrowers. Since July 1, it’s a genuine trade-off.
| Question | Keep FFEL at AES | Consolidate into a Direct Loan |
|---|---|---|
| Income-driven plan | IBR: 15% of discretionary income, payment capped | RAP only: 1%–10% of AGI, no payment cap |
| Forgiveness timeline | 25 years on IBR | 30 years on RAP |
| Existing IBR progress | Kept | FFEL credit generally not carried over |
| Public Service Loan Forgiveness | Not eligible | Eligible on RAP; count starts at zero |
| 1% autopay rate cut | No | Yes, if enrolled by December 31 |
| Unpaid interest help | Limited | RAP waives unpaid interest, adds principal match |
| Parent PLUS loans | Fixed plans only | Fixed Tiered Standard only |
The credit question deserves the most attention. Federal Student Aid explains that when you take out a new Direct Consolidation Loan, qualifying payments made on Direct Loans inside it are carried over using a weighted average, and other loan types aren’t considered. In plain terms, if you’ve spent ten years on IBR with an FFEL loan at AES, consolidating now generally doesn’t bring those ten years with you toward income-driven forgiveness. You’d be trading a 25-year clock with a decade already done for a fresh 30-year clock. Before you consolidate, ask AES for a written history of your qualifying IBR months, and ask Federal Student Aid how those months would be treated.
On the other side, consolidation is the only door to Public Service Loan Forgiveness for an FFEL borrower. If you work full time for a government or qualifying nonprofit employer and expect to stay in public service for ten more years, RAP payments count toward PSLF, and forgiveness after 120 qualifying payments is tax-free. For that borrower, consolidating is usually right despite the reset, because FFEL payments never counted toward PSLF in the first place.
RAP can also be meaningfully cheaper at lower incomes. Our calculator below runs both formulas so you can see where the lines cross for your income and household.
FFEL IBR vs. RAP Payment Calculator
Enter your income, household and balance. The calculator estimates your IBR payment on an FFEL loan at AES, the RAP payment you’d have after consolidating, and the 10-year standard payment for reference.
Planning estimate only. Your servicer calculates the official amount.
For IBR, the calculator subtracts 150% of the 2026 federal poverty guideline for your household size from your income, takes 15% of the rest, divides by 12, and caps the result at the 10-year standard payment. For RAP, it applies the percentage for your income bracket to your whole adjusted gross income, divides by 12, subtracts $50 for each dependent and sets a $10 floor. It doesn’t model RAP’s interest waiver or principal match, which make RAP more generous on balance growth than the payment alone suggests, and it assumes a single borrower filing alone. Married borrowers should check how filing status and a spouse’s loans change both formulas.
The pattern most people see: RAP tends to be cheaper at low and moderate incomes, and IBR becomes cheaper once its cap kicks in at higher incomes, because RAP has no cap. Before acting on any result, remember the hidden cost of consolidating: generally losing the IBR time you’ve already built on the FFEL loan.
Which Situation Sounds Like Yours?
The right move depends on your loan type, your job and how long you’ve been paying. Find your box and start there.
Staying put is often the strongest move. Your IBR forgiveness clock keeps running toward 25 years, your payment is capped at the standard amount, and consolidating would generally restart your income-driven count on a 30-year plan. Recertify your income every year on time, keep copies of each approval letter, and ask AES for a count of your qualifying months so you can track the finish line.
Consolidate your FFEL loans into a Direct Consolidation Loan, choose RAP, and submit a PSLF form with your employer’s certification. Your PSLF count starts with the new loan, but every on-time RAP payment while you work full time for a qualifying employer counts, and forgiveness after 120 payments isn’t taxed. Don’t choose the Tiered Standard plan by mistake; payments on it don’t count toward PSLF.
This is the hardest spot after July 1. FFEL Parent PLUS loans can’t use IBR, and the route parents used to reach income-driven repayment, consolidating and enrolling in ICR, required a consolidation made before July 1. A consolidation made now can be repaid only under RAP or the Tiered Standard plan, and RAP excludes parent loans, which leaves the fixed plan. Your remaining tools are the Standard, Graduated and Extended plans at AES, deferment or forbearance for short-term hardship, and discharge if you become totally and permanently disabled or if you or the student dies. If the payment doesn’t fit, talk to AES about the Extended plan before missing a payment.
For an FFEL loan, call AES and ask about an unemployment or economic hardship deferment, or a forbearance, and in the same call ask to recalculate IBR on your current income rather than last year’s tax return. A recalculated IBR payment can be as low as $0 and keeps your forgiveness clock moving, while deferment and forbearance usually don’t. For a private loan, ask what hardship programs the loan’s owner offers; terms vary widely.
FFEL loans can be discharged for total and permanent disability and are discharged when the borrower dies, or for Parent PLUS loans, when the student dies. Under the federal reconciliation law, death and disability discharges are permanently excluded from federal income tax. For private loans made after November 20, 2018, federal law requires a cosigner to be released when the student borrower dies; for older private loans, ask AES what the owner’s policy is and request it in writing.
Treat the two groups separately. Put your Direct Loans on autopay by December 31 to lock in the 1% rate cut through mid-2028, and if you were on SAVE, pick a new plan before your servicer’s deadline. Leave the FFEL loans at AES unless the consolidation trade-offs above make sense for you. Combining everything into one new consolidation would also end any older income-driven plan your Direct Loans are on today.
Some private loans that don’t meet the legal definition of a qualified education loan can be wiped out in a standard bankruptcy. In 2024 the CFPB sued PHEAA, alleging AES kept collecting certain private loans that had been discharged; the Bureau dropped the case in early 2025 without a finding against the company. If you believe a loan was discharged, send AES a written dispute with your discharge order, dispute any credit report entries, and talk to a bankruptcy attorney about reopening your case if needed.
Behind on Payments or in Default
Headlines about a collections pause apply to loans the Education Department holds. A defaulted FFEL loan can follow a different path, and that difference can show up on your paycheck.
On January 16, the Education Department delayed administrative wage garnishment and Treasury offset on the defaulted federal loans it holds while it rolled out the new repayment rules. As of this fall, it hadn’t announced a restart date. That pause doesn’t extend to FFEL loans held by guaranty agencies, which operate under their own collection rules. If your AES-serviced FFEL loan defaults, it typically leaves AES and goes to the guaranty agency that insured it, and that agency can pursue garnishment of up to 15% of your disposable pay after giving notice and a chance for a hearing.
The best defense is not defaulting. A federal loan generally goes into default after about 270 days without payment, so even a single phone call to AES in month two or three can open up IBR, a deferment or a forbearance. If you’re already in default, ask the loan’s current holder about rehabilitation, which requires a series of agreed, on-time monthly payments and removes the default notation from your credit history once completed, or about consolidation, which gets you out of default faster but brings the post-July 1 plan limits described above.
Applying for IBR, consolidation, rehabilitation, PSLF or a discharge is free through your servicer or StudentAid.gov. Companies that charge upfront fees, ask for your FSA ID password, or promise instant forgiveness are a well-documented scam pattern. Report them to the FTC and your state attorney general.
If AES Services a Private Loan
Private loans at AES come from banks, state loan agencies, credit unions and investment trusts. None of the federal plans apply, so your leverage comes from the contract and from consumer protection law.
Get the owner’s hardship options in writing
Ask AES to list every option the loan’s owner offers: temporary interest-only payments, reduced-payment programs, forbearance limits and any loan modification. Ask how many months of forbearance remain and whether interest capitalizes afterward. Each owner sets its own menu, so two private loans at AES can have very different options.
Ask about cosigner release
Many private loans allow a cosigner to be released after a set number of consecutive on-time payments and a credit check of the primary borrower. Request the release criteria, track your payment streak, and apply as soon as you qualify. Missing a single payment often resets the count.
Price a refinance, carefully
Refinancing a private loan with another lender can lower the rate if your credit and income have improved. Unlike federal loans, a private loan gives up nothing federal by refinancing. Never refinance an FFEL loan into a private loan without understanding that IBR, disability discharge and other federal protections would be gone for good.
If you’re sued, respond and ask for proof
Some private loans serviced by AES are owned by National Collegiate Student Loan Trusts, which have faced years of litigation over whether collectors could document who owns each loan. If you’re sued on a private student loan, file an answer by the deadline, ask for proof of ownership and the full chain of title, and check whether your state’s statute of limitations has run. A consumer attorney or legal aid office can help.
One detail surprises many borrowers: AES services private loans for a long list of owners, including state loan agencies and refinance lenders, and some of those owners publish more generous terms than big banks do. State-agency loans in particular sometimes offer income-based hardship programs or death and disability discharge written into the promissory note. Pull out your original loan agreement, or ask AES to send a copy, and read the sections on hardship, default and discharge before you assume you have no options. The lender disclosures we reviewed for AES-serviced private loans each list the lender’s own customer service line separately from AES, a reminder that the owner, not the servicer, sets the terms.
Five Costly Mistakes AES Borrowers Make
Most expensive student loan problems don’t come from bad luck. They come from a missed date or a decision made without seeing the trade-off.
Letting IBR lapse at recertification time
A missed recertification can bump your payment up to the standard amount and add unpaid interest to the balance. It’s the single most common way an affordable FFEL payment suddenly becomes unaffordable. Recertify early, in writing, and keep the confirmation.
Consolidating without asking what happens to past progress
Consolidation can’t be reversed. Before applying, get a written count of your qualifying IBR months from AES and ask Federal Student Aid how the new loan would treat them. If the answer is “not carried over,” weigh that loss against RAP’s lower payment or PSLF eligibility before you sign.
Using forbearance when a $0 IBR payment was available
Forbearance feels like relief, but interest usually keeps building and the months don’t move you toward forgiveness. If your income dropped, an IBR recalculation on current income may produce a very low or zero payment that still counts.
Refinancing federal FFEL loans into a private loan
A lower private rate can look tempting, but once an FFEL loan becomes private, IBR, federal deferment, and federal death and disability discharge are gone for good. That trade only makes sense for borrowers with high, stable income who are certain they’ll never need those protections.
Assuming a federal headline applies to an AES loan
The collections pause, the 1% autopay cut and SAVE all applied to Direct Loans. Before you act on any news story, check whether it says “Direct Loans” or “all federal loans.” When in doubt, call AES and ask how the change affects your specific loan.
Who to Call
Numbers below come from AES-partner disclosures, the organizations’ own sites and federal agency pages. Calling any of them is free.
| # | Where to call | Type | Phone | Use it for |
|---|---|---|---|---|
| 1 | American Education Services | Servicer | 800-233-0557 | Payments, IBR, deferment, payoff; weekdays 7:30 a.m.–9 p.m. ET |
| 2 | AES for ELFI loans | Servicer | 866-763-6349 | ELFI refinance and in-school private loans |
| 3 | Federal Student Aid Information Center | Federal | 800-433-3243 | Loan types, consolidation, RAP questions |
| 4 | Default Resolution Group | Federal | 800-621-3115 | Defaulted loans held by the Education Department |
| 5 | FSA Ombudsman Group | Federal | 877-557-2575 | Disputes you couldn’t resolve with a servicer |
| 6 | CFPB complaints | Federal regulator | 855-411-2372 | Servicing problems on federal or private loans |
| 7 | FTC fraud reports | Federal regulator | 877-382-4357 | Student loan “relief” scams |
| 8 | National Foundation for Credit Counseling | Nonprofit | 800-388-2227 | Budgeting and private loan hardship planning |
When we compared how AES-related problems are filed, the pattern in public CFPB complaint data was consistent: the most common category involves dealing with the servicer, followed by incorrect information on credit reports. Two habits help with both. Make important requests in writing through your AES online account so there’s a dated record, and download every approval or denial letter. If a problem drags on, a CFPB complaint gets a written company response, usually within weeks.
Bing Map Locator: Free Student Loan Help Near You
Pick what you need, then open Bing Maps centered on your location. If you share your location, it’s used only to build the map link in your browser.
Legal aid offices and law school clinics are especially useful if you’re being sued on a private loan or a guaranty agency has started garnishment. Many help for free based on income. A nonprofit credit counselor can build a budget that fits a student loan payment alongside other debts, and some can help you prepare for a hardship conversation with AES.
Our Verdict
Stay on IBR if you’ve built up years of progress and don’t work in public service. Consolidate if you’re pursuing PSLF, if RAP would cut your payment substantially at your income, or if you’re just starting repayment and have little IBR time to lose. Either way, decide on purpose; consolidation can’t be undone.
Get the owner’s hardship options and cosigner release rules in writing, price a refinance if your credit has improved, and if you’re ever sued, answer on time and ask for proof of ownership. Federal programs won’t rescue a private loan, so the contract and your paperwork are your protection.
Questions people still ask
Is AES the same as FedLoan Servicing?
Both were PHEAA brands. FedLoan serviced Education Department-owned loans until PHEAA exited that contract and those loans moved to other servicers. AES continues to service commercially held FFEL and private loans.
Can I switch away from AES without consolidating?
Generally no. The loan’s owner chooses its servicer. For an FFEL loan, consolidating into a Direct Loan moves it to a federal servicer; for a private loan, refinancing with another lender does.
Is IBR forgiveness taxable?
Yes, for forgiveness granted from this year on. The temporary federal tax exclusion for income-driven forgiveness expired at the end of last year. PSLF forgiveness and death and disability discharges remain tax-free federally; state rules vary.
Does AES offer an autopay discount?
Many loan owners have offered a small autopay discount on loans serviced by AES. Ask AES about your specific loan; the new federal 1% cut applies only to eligible Direct Loans.
Can a family member make payments on my AES loan?
AES accepts payments from others by phone or mail. Online payments generally require access to the borrower’s own account.
How long does consolidation take?
Usually several weeks. Keep paying AES until Federal Student Aid confirms the old loans are paid off, so a gap doesn’t turn into a late payment.
What happens if I miss my IBR recertification?
Your payment typically rises to the amount you’d owe under the standard plan until you recertify, and unpaid interest may be added to your balance. Set a calendar reminder a month before your anniversary date.
Can private student loans be forgiven?
Not through federal programs. Some state programs and employers help repay private loans, and some owners discharge loans on death or disability. Check your contract and ask AES what the owner’s policy is.
Will consolidating hurt my credit?
Consolidation usually has little lasting effect. The old loans show as paid and a new loan appears; on-time payments afterward matter far more.
Where do I complain about AES?
Start with a written complaint through your AES account. If it isn’t resolved, file with the CFPB, and for federal loans, the Federal Student Aid Ombudsman Group.
How this page was checked. Repayment plan eligibility, RAP terms, SAVE deadlines and autopay rules come from Federal Student Aid and Education Department announcements. Collection pause details come from the Education Department’s January announcement. Poverty guideline figures come from HHS. AES contact details come from AES partner disclosures and PHEAA materials. Payment estimates, the calculator and all illustrations are our own calculations. Your servicer’s written notices are the final word on your account.
This page is independent and not affiliated with AES, PHEAA or any lender. It is general information, not legal, tax or financial advice.
Key sources: Federal Student Aid · U.S. Department of Education · CFPB · HHS · PHEAA