American Education Service: Updated 2024

American Education Services (AES) is the nation’s largest servicer of federal student loans, serving millions of borrowers. It’s important to understand how AES operates and how it can affect your student loan experience. 

In this article, we will take a closer look at AES and the services they provide, as well as some important information for borrowers to be aware of when working with this organization.

What Are American Education Services?

The Pennsylvania Higher Education Assistance Agency (PHEAA) owns AES. They handle and guarantee private student loans such as FFEL. 

A student loan servicer acts as a go-between for the borrower and the student loan lender during the repayment term. AES guarantees the loans, committing itself to pay back the debt in the event that the borrower defaults.

History of American Education Services

Its main goal was to manage state-based financial aid programs for students in Pennsylvania. But in the 1970s and 1980s, when student loan demand increased nationally.

AES was founded by PHEAA as its loan servicing subsidiary in 1990. AES was entrusted with overseeing the federal student loan repayment procedure.AES may also handle private student loan servicing for specific lenders, even though its primary focus is on serving federal student loans. 

Types of Student Loans That AES Service

Only privately held Federal Family Education Loan Program (FFELP) loans and commercially held loans are serviced by AES. FFELP loans that the United States owns.

  • Directly Subsidized Loans: Undergraduate students who can prove their need for funding can apply for these loans. 
  • Direct Unsubsidized Loans: Regardless of financial need, undergraduate and graduate students can apply for these loans.
  • Direct Consolidation Loans: This program makes it easier for borrowers to repay their federal student loans. 

Importance of student loan servicers in the education financing process

Enhanced long-term financial wellbeing

 Money management is a skill that can be taught to children at a very young age. It helps adults create good credit, manage budgets, save money, and invest money.

Afford big-ticket items and life goals

Strategies to end the intergenerational cycle of poverty. It is common for low-income families to lack financial wellness instruction that they can impart to their offspring.

A higher probability of youth attending college

 Offspring whose parents open college savings accounts had a threefold higher probability of attending college and a fourfold higher likelihood of graduating.

A greater degree of financial independence

Women are less likely to be dependent on males for income. Financial literacy increases access to resources during hard times. 

See more about Early Chaild Education

Services Provided by American Education Services

Loan Servicing: On behalf of the US Department of Education, AES administers the repayment process for federal student loans. Handle requests for forbearance and deferment. AES can assist you in reducing the amount you owe or in temporarily stopping your payments. 

Handle additional and regular payments. You may direct AES to apply additional payments to your current balance by contacting them by mail, phone, or online. 

Loan consolidation services

Borrowers can combine several federal student loans into a single Direct Consolidation Loan with the assistance of AES.Consolidation can streamline the repayment process and perhaps reduce monthly payments through longer payback terms.

Student loan servicing

It can be confusing to figure out how to pay for education and what your alternatives are for repaying student loans.  We recognize the difficulties experienced by students and their families. The counselors have received specialized training to help them better particular financial circumstances.

Payment processing

  • Quick Debit: Even on weekends or holidays, a Direct Debit payment posts to your account on the day it is due. 
  • Make Online Payments: When making an online payment. Online payments made through the same day will be recognized as of 11:59 PM (ET).

Benefits American education services

Employer contributions to student loans

A tax-free employer student loan repayments (SLR) incentive can hasten employees’ debt repayment.

Help with tuition and reimbursement

Give your staff members a tuition assistance or reimbursement (TA/TR) benefit to aid in their education and growth.

There is no tax on it.

Employers and employees are not subject to taxes on their tuition reimbursement or student loan contributions.

Talent from the upcoming generation is drawn to it.

Repayment of school loans scored in the top three desired advantages for 41% of recent graduates. 


Is American Education Services private or federal?

AES is a federal service.

What types of student loans does American Education Services service?

Federal Consolidation Loans, Federal PLUS Loans, Unsubsidized Stafford Loans, and Stafford Loans are all considered FFEL loans.

How to contact American Education Services

AES might offer email addresses for particular questions. For email contact details, see any correspondence or the AES website.


It is evident from thorough investigation and analysis that American Education Services (AES) is essential to the student loan industry. We have found that AES mostly acts as a loan servicer for federal student loans, providing a range of services. From providing easy ways to pay to providing helpful information and individualized support.

Our research shows that AES offers crucial services for processing payments, including help with payback. Finally, our research shows that AES is a reliable resource for borrowers trying to understand the intricacies of repaying student loans. 

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