Pennsylvania Higher Education Assistance Agency

Review: My student loan was with [redacted] (my account #[redacted] their address Office of the Ombudsman, US Dept. of Education, 830 First St., NE. Washington, DC 20202-5133 Phone: ###-###-####)and was transferred to American Education Services account [redacted]. I made my June payment which was due on 6/24/2013 to [redacted] Service and was mailed on 6/18/2013 for $139.86. I recieved a bill via mail on Friday (6/28/2013)and the post marked date on the envelope is 6/24/2013 from the new company American Education Services. The bill is for my June payment and due date is 6/24/2013 which was the date they mailing the statement. I am VERY VERY angry about this. My payment had already been made to [redacted] ON TIME! I called American Education Services today 7/2/2013 and spoke with [redacted] stating that my account shows late and will go against my credit report even though I made my payment to my student loan company that I have been paying for years and then they are going to show my payment to them late because they didn't even mail it out to me in time and it go against my credit. I have paid my payment for June and I am VERY ANGRY that this is showing up on my credit report as late. This is NOT a good way to start out with this new company that has my student loan.Desired Settlement: I want my payment to be shown paid on time and this deliquent status off my credit report immediately.

Business

Response:

See attached PDF file.

Review: My daughter took out a student loan with AES in 2005 which I cosigned for her. In the last 6 months it has come to my attention (when applying for a car loan) that this loan was reported as being 'defaulted' and my credit report of nearly 50 yrs was ruined with one $800 student loan. Of course I spoke to my daughter and found out (from my recently generated detailed credit report) that AES was not reporting certain payments that had been made to the account then calling the loan defaulted. I paid off this loan as soon as I could get the money so at least the mis information would stop. However, I realize that this could last up to 7 years on my credit report and I'm very upset about this. Prior to paying off the loan, I contacted AES 3 times to find out how to resolve this issue. Once by written letter, once through email and once by phone. The email and letter were never answered and the person on the phone call was very confused as to the standing of the loan. This is the ONLY black mark on my credit report and seemingly due to the incompetency of this company; they are playing very serious games with people's lives and I would like to have my credit rating restored as well as this company's practices investigated. Thank youDesired Settlement: I would like to have this off of my credit report immediately and permanently as well as an investigation into this company's practices.

Business

Response:

See attached PDF file.

Consumer

Response:

[A default letter is provided here which indicates your acceptance of the business's response. If you wish, you may update it before sending it.]

I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.

Regards,

Review: I am currently between jobs with my new contract starting June 30. AES continues to make it difficult for me to put my loans into forbearance. They have stated more than once "I do not qualify for forbearance," even though I am unemployed for a brief amount of time. It has negatively effected my credit. I continue to reach out to AES and ask for help but they continue to deny any assistance.Desired Settlement: Change policy so those with student loans can manage their payments more effectively.

Business

Response:

June 25, 2014Dear **. [redacted]:This letter is in response to an inquiry AES received from the Revdex.com (Revdex.com) regarding the status of the educational loan account. We trust that the following information will be of assistance.AES currently services two, Alternative Undergraduate Program (ALPLN) Loans which were disbursed September 5, 2006 (Loan 3) and January 9, 2007 (Loan 4) on behalf of the owner, [redacted] ([redacted]).Because AES is not the owner of the loans, it does not have the authority to alter or negotiate the terms of the Credit Agreements and must administer the loans in accordance with their respective terms.We understand from your inquiry that you are experiencing difficulties making your required monthly payments and are requesting that AES postpone your monthly payment obligations. As much as possible, we wish to assist you in establishing repayment arrangements that are ideal for your financial situation. However, AES is only able to offer repayment alternatives that are authorized by [redacted]AES’ records confirm that Loans 3 and 4 are currently on Temporary Hardship Forbearance from May 1, 2014 through June 30, 2014. A letter confirming this information was sent to you on June 19, 2014. During periods of forbearance, your obligation to make your required monthly installment payments is postponed; however, interest continues to accrue on a daily basis, and any unpaid interest will be capitalized (added to the principal balance) at the end of the forbearance period.At the expiration of the forbearance, Loans 3 and 4 will remain eligible for three months of Temporary Hardship Forbearance, as nine of the cumulative 12 months offered by [redacted] have been utilized. If you wish to apply for an additional period of Temporary Hardship Forbearance for Loans 3 and 4, we have enclosed the [redacted] forbearance request form for your convenience.Furthermore, as the contracted service provider, AES is required to perform billing, credit reporting, and additional servicing-related activities. Specifically, AES is obligated to notify you and the cosigner, [redacted], should the account become past due a designated number of days by attempting telephone calls, generating emails, and sending letters. These activities provide an opportunity for repayment alternatives to be offered, when applicable.If you have any questions or concerns, you may contact our Customer Service Department toll-free at ###-###-####. Loan counselors are available Monday through Friday from 7:30 a.m. to 9:00 p.m., ET.

Review: I have a loan through and make payments through this company. The payment is due the 19th of every month but EVERY statement I have EVER received says payments not made after the 29th of each month will be assessed a late fee. I receive my income from the state. For the month of November I did not get money until the 27th of the month. I could not make the payment on 11/28 due to it being the Thanksgiving holiday. I scheduled the payment for the 29th. I have been assesed a late fee of $3.29, and they REFUSE to do anything about correcting it. They flat out stated that it is not their problem all they do is process the loan payments.

This company harasses you concerning payements as well. I have had to change my phone because they will not quit calling. I do not mean they call once a day, or once in the morning once in the evening. One day they called me every 10 minutes for a half an hour over $2 I had entered the wrong amount when I made my payment. An honest mistake. I even told them I had entered the wrong payment and would correct it then. They continued to call every 8-10 mintutes until my husband had to get RUDE with the man to get them to quit. In this instance I have received daily emails, last nights emails were coming at a rate of every 2 hours, and they are threatening emails. If you don't make your payment we will do this or we will do that.

Just like now, my payment has been made. It shows in their system payment was made on 11/29, but because they take their sweet time processing it, it is showing it in a delinquent status until they get it posted to my account. It takes them 3-5 business days to process payments and they harass you for their pokey practices.Desired Settlement: I want the $3.29 refunded. This company is only looking for a dollar.

Business

Response:

December 12, 2013

Dear **. [redacted]:

Kindly accept this letter as a formal response to the inquiry AES received through the Revdex.com concerning the status of your educational loan account. We trust that the following information will be of assistance.

AES services a privately-insured [redacted]) Loan disbursed on August 1, 2007 (Loan 1) on behalf of the owner, [redacted]), a privately-insured [redacted] Loan disbursed on January 23, 2008 (Loan 2) on behalf of the owner, [redacted], N.A., and a privately-insured [redacted] Private Student Loan ([redacted]) (Loan 3) disbursed on October 8, 2008 on behalf of the owner, [redacted] Bank, respectively. AES, as the third-party service provider, AES is required to administer the loans in accordance with the terms of the signed Credit Agreements.

The signed Credit Agreements stipulate that the borrower and cosigner, [redacted] (Loan 3 only), are equally responsible for maintaining a current account status by remitting on-time payments. When the loans are in a delinquent status, AES is required to commence additional servicing activities, including placing telephone calls, sending letters, and generating emails. This contact must continue until the loans are restored to a current status. Please understand that the respective owners, may also contact you and the cosigner directly, or they may use a collection agency to assist in obtaining payment for the delinquent amount. Therefore, you and the cosigner may receive collection communication from various offices. Please note that calls from outside collection agencies are not made by AES. AES representatives will always identify themselves and the nature of the telephone call.

We understand that you are disputing the $3.29 late fee that was assessed on Loan 3 for the payment that was due on November 19, 2013. Billing statements are sent 20 days prior to the due date. As you know, your installment of $150.37 is due by the 19th of each month. AES records reflect that your payments have been received after the required due date. To confirm this information, a statement of account (SOA) was mailed to you under separate cover for your review. It is important to know that late fees are assessed at the sole discretion of the owners of the loans. Late fees are assessed at 15 days of delinquency for Loans 1 and 2 and at 10 days of delinquency for Loan 3. Accordingly, this information is detailed on your billing statement that was due on November 19, 2013, a copy of which is enclosed.

Because the delinquency for the November 19, 2013 bill exceeded 10 days, Loan 3 was initially assessed a late fee totaling $3.29 on November 29, 2013. However, since your $150.37 payment was also received on November 29, 2013, adjustments were completed to remove the late fee that had been assessed on the loans. It is important to know that payments are credited to the account effective the date of receipt.

On December 2, 2013, we received a payment in the amount of $3.29 via AES website. Because the payment was not targeted by you towards Loan 3 only, it was credited accordingly towards all three loans. As a result, your account is partially paid ahead for the installment due by December 19, 2013. If no other payments are received in the meantime, a partial installment of $147.08 will be due on your loans by December 19, 2013.

If you have any additional questions, please call our office toll-free at ###-###-####. Loan counselors are available Monday through Friday from 7:30 a.m. to 9:00 p.m., ET.

Sincerely,

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reas

Review: [redacted]

I am rejecting this response because:

My payment was scheduled AND made on the 29th NOT Dec. 2nd as stated. The company has a turtles process for processing payments and instead takes THREE days to process them. It was actually scheduled on Nov. 27th when my money was received but I was told that date was not available due to Thanksgiving. Therefore it automatically pushed it to the 29th, but the company did not apply it to my account the day it was made instead took three days to process it and applied it on Dec. 2nd at which time the payment was considered late and additional fees were assessed. This is not my fault they they process at a turtles pace, and it takes 3 days apply to my account they are just looking to make an extra buck by taking a few more days to process my payment. The late fees are not fairly applied to my account and need REFUNDED.

Regards,

Review: My complaint to your department is as follows: I have been told by three representatives of AES that my Parent loan with AES may qualify for Debt Forgiveness as my daughter for whom I took out this loan died Five years ago. They sent me in email the Post Office Box number in which to send my documentation which I have now done Three times to that Post Office Box and Once to their physical address as well. I have sent a total of Four letters with explanation and death certificates. I also sent the last time to their P.O. Box and Physical address copies of all correspondence with AES by email. I am still being told that they have not received my documentation. This is ridiculous and I am beyond frustrated as I am sure that you can understand.Desired Settlement: Debt Forgiveness

Business

Response:

December 2, 2013

Dear **. [redacted]:

This letter is in regards to the inquiry AES received from the Revdex.com (Revdex.com) regarding the status of your educational loan account, serviced by our office.

AES services your Federal Consolidation Loan on behalf of the owner, [redacted] Bank, N.A. As the service provider, AES administers the loan in accordance with the terms of the signed promissory note and federal regulations. The chart below details the loan.

DISBURSEMENT DATE LOAN PROGRAM ORIGINAL PRINCIPAL BALANCE CURRENT PRINCIPAL BALANCE

November 27, 2002 UNCNS $55,529.11 $49,691.19

AES’ records confirm that the Federal Consolidation Loan is comprised of one unsubsidized Federal Consolidation Loan and one Parent Loan for Undergraduate Students (PLUS). Our records further confirm that the PLUS loan was borrowed to assist with financing [redacted]’s academic endeavors. In accordance with federal regulations, a PLUS loan may be forgiven (“discharged”) in the event of the death of the student for whom the loan was issued.

We regret to learn of your daughter’s passing. Pursuant to your November 20, 2013 telephone conversation with Research Specialist [redacted], the Death Certificate that you provided was forwarded for processing. You may be assured that a death claim has been submitted to the guarantor of the loan, the Pennsylvania Higher Education Assistance Agency (PHEAA). AES expects the discharge process to be completed within 60-90 days. After the PLUS loan portion of your Federal Consolidation Loan is discharged, the financial activity of the loan will be recalculated.

AES extends its condolences to you and your family. In addition, we regret any inconvenience that you may have experienced as a result of the delay in processing the claim. For your convenience, I have asked **. [redacted] to assist with any additional questions you may have. If you need further assistance specific to this inquiry, please feel welcome to call **. [redacted] directly at ###-###-####. For any general assistance on the loan, please contact our Customer Service Department at ###-###-####. Loan counselors are available Monday through Friday from 7:30 a.m. to 9:00 p.m., Eastern Time.

Sincerely,

Review: I have a student loan serviced by PHEAA. I have been making on time payments for several years. My principal has decreased and the loan has a fixed interest rate. For the last 3 months in a row, they have increased my payment even though my interest rate is fixed and my principal has decreased. If anything, my payment amount due should have DECREASED, not increased. I have not had a status change that would even prompt a new payment schedule...this is just out of the blue - a change to my amount due each month since August. I have asked them 3 times now for an explanation. I have received one canned response via email that does not answer my question. I am beyond frustrated. I work in the student loan industry for [redacted] - been doing it for over 13 years now. I assure you, I know how student loans work and this isn't it. You cannot just change the terms of a loan and not advise what happened. And three times? Really? Can we get it right pleeeeeeease? The Department of Education will most certainly hear about this poor service.Desired Settlement: I want someone to thoroughly research my account. Get the payment arrangements figured out once and for all and apologize for increasing my payments without any explanation, even after one was requested several times.

Business

Response:

November 13, 2013

Dear [redacted]:

This letter is in response to an inquiry that AES received from the Revdex.com (Revdex.com). We trust that the following information will be of assistance.

Your correspondence indicated that you have concerns regarding the application of your payments remitted to our office. Because we were unable to locate an account for you by utilizing your name and contact information, we kindly ask that you provide our office with your 10-digit account number. Once this information is received, a thorough review of your concerns will be completed.

If you have any additional questions or concerns, you may call our Customer Service Department toll-free at ###-###-####. Loan counselors are available Monday through Friday from 7:30 a.m. to 9:00 p.m., ET.

Sincerely,

Review: ON August of 2013 I accidently used my mortgage payment and made a huge payment to my student loan. My student loan being only $60 a month I accidently mixed up my bills through my online bill pay through my bank and made a payment of $1673.00 to my loan. Obviously stressed out because of not being able to pay my mortgage I spoke to my bank and went to them first to try and resolve my issue. Since my payment had already been posted to my student loan 6 day prior it was out my banks hands. That is when I decided to call AES. Right off the bat they rude and disrespectful and seemed to not care about my situation. They insisted that my bank could easily unauthorize this payment when clearly I knew it could not be done because it had already been processed and because I had already spoken to my bank who was very helpful. They refused to help my situation. I then decided to talk to a manager who was just as rude and disrespectful as their employee was. All he said was "I see you already spoke to someone and I'm going to tell you the same thing!" They advised me to send in a letter from my bank saying that this payment was an error and that I would possibly be refunded 45 days later! I have now idea how I will pay my mortgage now. I take responsibility for making a mistake on my end with all stress put aside, but at then end of the day that is my money and I still have other bills to pay.Desired Settlement: I would like to be refunded my mortgage money as soon as possible, there is no way that I can possibly wait 45 days for my "possible" refund. I'm not saying that I will not pay my loan because I make my full payments every month, I just need my $1673.00 that was accidentally payed toward 'My' loan to be refunded to me so that I can pay my house.Respectfully,[redacted]

Business

Response:

August 27, 2013

Dear **. [redacted]:

This letter is in response to your recent inquiry (ID# [redacted]) regarding the status of [redacted]’s educational loan account, currently serviced by our office. We trust that the following information will be of assistance.

A comprehensive review of the account has been completed. A copy of our response letter is enclosed for your review. We trust that the letter addresses the concerns brought to our attention.

If you have additional questions or need further assistance, you may call our office Monday through Friday at ###-###-#### from 7:30 a.m. to 9:00 p.m., Eastern Time.

Sincerely,

Dear **. [redacted]:

Kindly allow this letter to serve as a formal response to the inquiry AES received from the Revdex.com regarding your educational loan account serviced by our office. We trust that the following information will be of assistance.

AES currently services your Alternative Undergraduate Program (ALPLN) Loan on behalf of the owner, [redacted]). AES understands that you wish to receive a refund of the $1,673.00 payment, which you inadvertently remitted. Based upon our review, AES received these funds through [redacted], an online bill-payment company. It is important to note that no servicing errors occurred on the part of AES. Since non-sufficient funds reversals may be submitted for up to 30 days, it is the policy of AES to hold an online bill-payer payment for 30 days before a refund is initiated.

Although AES has received documentation from your financial institution regarding the misrouted payment, the correspondence does not specifically state that the funds have cleared your account and that the payment will not be reversed by its office. As a result, AES is required to adhere to the 30-day refund policy.

To assist you, AES has scheduled to return a portion of your payment to [redacted] on September 3, 2013. As you may be aware, a partial monthly installment of $22.52 was due on July 28, 2013 and a full monthly installment of $63.75 will be due by August 28, 2013. Therefore, to maintain the loan in a current status AES will be refunding a total of $1,586.73 [$1,673.00 - ($22.52 + 63.75)] to [redacted] on September 3, 2013.

We expect that [redacted] will return the refund to your financial institution and that your financial institution will place the funds into your account. However, AES is unable to estimate the processing time of [redacted] and your financial institution. Your financial institution may be able to provide you with additional information on its processing times.

If you have any questions or concerns, please contact Customer Service at ###-###-####. Loan counselors are available Monday through Friday from 7:30 a.m. to 9:00 p.m., ET.

Sincerely,

Review: In 2006, I decided to consolidate my loans after finishing my bachelors degree. I contacted AES. They told me that they would consolidate all loans even my Sallie Mae loans which I found out later that they did not. I later that year went back to school to get my master's which added again to the loan owed. I have been putting the loan off in deferment while I get my finances together where I can pay. I was told in 2013 that I could no longer do that and that I have to pay. I have been paying even though sometimes I was not able to pay everything. I paid something to show that my intentions were to pay it off. Well, this past year in 2014 I decided that I wanted to pursue financing for a car. My credit union ran my credit report and found that AES (Pennsylvania Higher Education Services) has two questionable things on my credit report and that I would need to get an explanation from them as to what it is. I did not know what it was because I was currently paying the loan off so I called them to inquire about it and get some type of written explanation to give to the credit union. The first person that I spoke to told me that it was actually a mistake and that the things that were on there were portions of the loan that were not consolidated even though it should have been. I asked the explanation in writing and was transferred to another person that argued with me about the portion of the loan that I owed and was paying saying that I would be delinquent in my payment even though I made a payment each month. I explained to her that I needed something saying that the items on my credit report were from loans that were not consolidated. She said that she could not do that and continued to argue with me about the portion of the loans that I was paying off. A week later I go online to make a payment and see that my payment is now under delinquency and that they will begin to garnish my wages. I called and spoke with someone else who told me that I am not eligible for deferment or anything that would stop the delinquency but that I would receive documents in which I would have to complete them along with an itemized listing of the bills that I pay each month. I have not received the email and my calls have gone unanswered. I cannot afford my wages to be garnished. I need help in this matter. I am a single parent and I am struggling as it is to pay my loans and bills.Desired Settlement: Garnishment activity to stop, letter regarding unconsolidated portion of the loan, and opportunity to pay loan off at a reasonable amount.

Business

Response:

See attached PDF file.

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Review: [redacted]

I am rejecting this response because:

Regards,

Review: I submitted a payment to American Education Services (AES) under the umbrella of the PHEAA for an October 2013 billing statement for my student loan.

The check I issued for payment was dated 09/28/13 and was "cashed" and posted to my bank account on 10/01/13.

I received a letter from AES stating my account was delinquent and payment had not been received which is untrue because the check posted to my account.

I have been making on-time payments and with more than the minimum amount required prior to this issue.Desired Settlement: I want AES to remove the non-payment / late fees / deliquent status from my student loan account and adjust the amount owed accordingly as if I never missed a payment.

Business

Response:

November 8, 2013

Dear **. [redacted]:

This letter is in response to your recent inquiry Complaint ID # [redacted] regarding the status of **. [redacted]’s educational loan account. We trust that the following information will be of assistance.

A comprehensive review of the account has been completed by our office. A copy of our response letter is enclosed for your review. We trust that the letter addresses the concerns brought to our attention.

If you have any additional questions, please call our office at ###-###-####. Loan counselors are available Monday through Friday from 7:30 a.m. to 9:00 p.m., ET.

Sincerely,

Business

Response:

November 8, 2013

Dear **. [redacted]:

Kindly accept this letter as a formal response to the inquiry AES received through both the Revdex.com and the Consumer Financial Protection Bureau concerning the status of your educational loan account.

AES services both subsidy portions of your Federal Consolidation Loan disbursed on December 14, 2005 on behalf of the owner, [redacted]. The Consolidation Loan had an original principal balance of $28,222.92. The current principal balance has increased to $32,198.23 as a result of interest capitalization (the addition of the outstanding accrued interest to the principal balance of the loan). AES, as the third-party service provider, administers the loan in accordance with the terms of the original promissory note and federal regulations.

We understand that you issued a check on September 28, 2013 as payment for the October 10, 2013 bill and that the remittance was allegedly cashed by AES on October 1, 2013. As a result, you are requesting the removal of any unfavorable credit reporting or late fees that may have been assessed in regards to the October 2013 billing cycle. AES files confirm that the last two payments of $230.00 were received on August 30, 2013 and November 1, 2013. The August 30, 2013 payment satisfied the remainder of the September 10, 2013 bill and a portion of the October 10, 2013 bill. In addition, the November 1, 2013 payment satisfied the remainder of the October 10, 2013 bill and a portion of the November 10, 2013 bill. Because the delinquency for the October 10, 2013 bill exceeded 15 days, your loan was accurately assessed late fees totaling $10.39 on October 25, 2013. However, you may be assured that no unfavorable information has been submitted to the nationwide consumer credit reporting agencies as a result of this matter for October 2013.

On October 29, 2013, AES received correspondence containing an illegible check from you. Because we were unable to verify the processing date on the reverse side of the check, we remain unable to remove the late fees currently assessed on the account. In order for AES to review this matter further, we ask you to please provide a legible front and back copy of the check allegedly processed on October 1, 2013. You may forward this documentation to the address or fax number listed at the top of this letter. At this time, your account is paid current through the installment due on October 10, 2013. If no other payments are received in the meantime, a partial installment of $168.41 will be due by November 10, 2013.

If you have any additional questions, please call our office toll-free at ###-###-####. Loan counselors are available Monday through Friday from 7:30 a.m. to 9:00 p.m., ET.

Sincerely,

Consumer

Response:

[A default letter is provided here which indicates your acceptance of the business's response. If you wish, you may update it before sending it.]

I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.

Regards,

Review: I made a payment (via check) to American Education Services on September 3, 2013. This was for a student loan payment. The amount of the check was $2200. My account was not properly credited for the transaction. After close to a dozen calls, two bank statements and a trace from [redacted] Bank providing all the transaction information; they are still being uncooperative and not posting the payment to my account. They said the account number was recorded incorrectly (whether it be on my part or theirs is not known, explained later in complaint.) Since the account number did not match any of their records, they placed it into a 'suspended payment' folder. This folder allows them to withdraw the money from my bank account, but not credit any account. Several of the representatives I have talked to are very unhelpful, rude and lack the knowledge required to deal with such issues.

They have told me that it would be taken from the suspended payment folder and placed into my account within a week. This statement has been told to me 4 times now over the course of a month. Today when I called them, they told me it was all my fault and as such it wasn't really their problem.

I have requested a copy of my check from their financial institution. Their financial institution does not keep such records and have thus far been unable to locate my check. This in turn leaves me to wonder how they know it was MY fault that the account was recorded incorrectly on the check in the first place? How can a financial institution not be required to keep proof of a transaction? I believed it to be common practice to keep a copy of the check in either electronic or hard-copy form. I believe this may be negligence on their behalf.

The trace from [redacted] Bank (my bank) shows that it was cashed by them. Also, AES has acknowledged that they see my payment in their 'suspended payment' folder. Why they will not transfer it to the proper account is beyond my comprehension. My bank has stated that there is nothing more they can possibly send them, they have exhausted all possibilities of proof.Desired Settlement: All I want is for my $2200 payment to be pulled from their 'suspended payment' folder and placed into my account.

To a lesser extent, I would also like for AES to increase the competency of many of their Customer Service Representatives.

Review: There were 2 payments made that have not been posted to my account. I had to send copies of my bank statements showing these payments were made, to which it was agreed I did indeed make these payments. One was for 128.51 and one was for 143.61. One in September 2012 and one in October 2012. That was 6 months ago.

If I had not made a payment in six months, their billing department would have turned me over to a collection agency, charged me interest, and harassed me. I have spoken with the company numerous times, and still the problem is not resolved after months. Now my tax information is not correct and April 15th is approaching. This is unacceptable accounting practices that no other organization could get away with.Desired Settlement: I want my account corrected and my tax statement corrected. And I want to stop getting a run around from customer service as to why the problem has not been corrected.

Business

Response:

See attached PDF file.

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Review: [redacted]

I am rejecting this response because:

I did not send in a complaint against AES. My complaint was against Pennsylvania Higher Education Assistance Agency. How did AES get this?

PHEAA has posted one payment that was missing; the one for october 2012. however, September's still has not been posted for 128.51

Regards,

Business

Response:

See attached PDF file.

Consumer

Response:

[A default letter is provided here which indicates your acceptance of the business's response. If you wish, you may update it before sending it.]

I have reviewed the response made by the business in reference to complaint ID [redacted] and find that this resolution is satisfactory to me.

Regards,

Review: AES, a servicer of both my Federal and Private loans would like me to pay them $500-600 a month. I cannot afford to make these payments. I have filled out numerous debt forebarance forms as requested by the Obudsman's office and still I was denied. I spoken to countless Customer Reps with AES about my situation, and in return, I was told they would have my loans defaulted, insulted and harassed with numerous phone calls at my job. I should not be penalized because I cannot afford to make high payments- that is not fair. As a result my credit is damaged beyond repair which means I am unable to seek an alternate consolidation company- therefore I am stuck with AES . They even signed me up to the Graduated Student [redacted] program without any prior authorization and/ or consent.Desired Settlement: AES, as a servicer should adhere to their customers unique situation and be able to provide different payment plan options which include lower payments. I would like for them to be able offer me lower montly payment option instead of threatening to have my wages garnished and my loans defaulted. Or at least transfer my loans to another company who is willing to work with me without penalties.

Business

Response:

Please let us know if you need any additional information.

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Review: [redacted]

I am rejecting this response because:

Dear [redacted]:

Review: I received a student loan from this company many years ago and my mother was my co-signer, my parents both recently had to file bankruptcy because of financial problems in October 2012. At that time my parents were told that the student loan would not be placed in the bankruptcy, and I was making ontime payments for this loan. In October when I went to make my payment on the American Education Services website said that I did not have a balance,so the next day during business hours I called and I was told by a customer service rep that the balance was no longer there becuase someone on the loan had filed bankruptcy and I informed them that we were told that it would not be included in bankruptcy, and that I would have to contact [redacted] would now had the loan. AES also stated that it ws in the prmissary note that if anyone on the loan filed bankrupcty the loan would go in default and placed on my credit for 7 years, I asked many times for them to send me a copy of my promissary note and they told me that they would, here it is now July 2013 and I have not recieved that yet, when calling again they state that they no longer have control of this student loan and they cannot get me a copy of promissary note. When I called [redacted] for a promissary note I was also told the same thing that they would mail me a copy of the promissary note and have not received it yet. When following up with [redacted] they state they no longer have this [redacted] and it has been sent to [redacted] agency. So I called them and was told that I could not get a copy of the promissary note until five years when bankruptcy would be clear of my parents credit.I asked them how long its going to be on my credit report and they state that a discharge of student loan is on my credit for seven years, which does not seem fair to me at all becasue I was making on time payments I was the primary signer on the loan my mother was only the co-signer so becasue of a financial hardship of my parents I get punished longer then they do for something I was paying on time. WIth this being said this is now on my credit report resulting in me not being able to get loans and I am trying to go back to graduate school and finish my degree and purchase a house. I don;t understand why the lawyer states that this is illegal but all these companys tell me the same thing becasue my moms social security number went into the bankruptcy clearinghouse because she co-signed they automatically defalut and go as a discharge on my credit. This is not fair to me when I was making on time payments and trying to do the right thing. No wonder people are going out and filing bankruptcy because they cannot catch a break. I would like this removed off of my credit and I will continue to make on time payments please help me in obtaining my wishes and my promissary note. If I have to get an attorney I will do so but I need to know what my rights are I also asked them multiple times about the default process and it states that you have to be late 180 days and I was not late and asked about loan rehabilitation and was told that it was too late to do so because it was already in bankrupcty, If the lawyer would have said thats what we needed to do before the bankruptcy went through then I would have done so but he said that it would not be included and not to worryDesired Settlement: I want this removed from my credit score and I will continue to make on time payments.

Business

Response:

Please let us know if you need any additional information.

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Review: [redacted]

I am rejecting this response because:

Regards,

I still don't think that this matter has been resolved to my satisfaction. I do not want this showing in my credit as a discharge. I want this removed from my credit and I want to continue to pay the loan as I was paying it before October 2012 when it defaulted. I know that AES no longer has the loan and that it is with [redacted]. Is there anyway to have this removed from my credit because this is hindering me. I am not the one that filed bankruptcy and boils not be punished by having this negative mark on my credit. I was laying the loan on time and would like to continue doing so but want the default removed from my credit

Business

Response:

See attached PDF file.

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Review: [redacted]

I am rejecting this response because:

Are you saying that I need to dispute this on my credit report in order for it to come off of my credit report and do I need to speak with [redacted] in regards to why they did not let AES repurchase my student loans. [redacted] told me that I can make voluntary payments on these student loans but it will remain on my credit for 7 years as a discharge I want this removed because this is hindering me from getting any other student loans or loan to purchase a house. I will contact [redacted] today and see what they have to say. Thanks for your help in regarding this matter

Regards,

Review: I went to their website (http://www.aessuccess.org/), and I tried to log in, but the website denied access and the website said to call customer service for technical support (###-###-####). The website also says on their front page, "Several systems will be down for maintenance on Sunday, October 12 from 5:00 AM to 12:00 PM (ET).

During this time, you may experience problems accessing your account, making payments, or performing other online activities. Telephone customer support will also be limited. We appreciate your patience." However, this will not be for over 3 hours (it is 10pm PST, and that would be 2am PST), so the website should still be working.

However, I tried several more times with the same error message even though all my information was correct.

I called their customer service and followed all the prompts to reach the technical assistance option (which takes over 2 minutes which is incredibly lengthy because it asks you unnecessary questions). At first the line hung up on me without me being able to select the option. The second time, I reached the technical assistance option, and it said the technical assistance is closed. Then it hung up on me.

This is very frustrating and very problematic:

First, I never received any notification that this website would be down. This is a loan repayment website where payments are very important.

Two, their notification about the systems not working is incorrect. If all systems are going to be down already, the website should state that already. It should not give false information.

Three, when I logged in, and it said to call customer service; the website should state the hours, and if the phone number is going to be useless and just hang up on the customer because they're all closed, the website should already state that. It should say: "If you are having issues, please contact customer service. [Phone number here]. The working hours are Monday through Friday 7am-9pm. If we are not available by phone, please leave us a message with this form, and we will get back to you as soon as possible. Thank you for your patience. We appreciate it and your business."

The website falsely states when its systems will be down and when it says to contact customer service, it really didn't mean it. The customer service number it stated to contact was not open and would not be open during the ENTIRE time the website would be down, so it is false to even place that message on the website!Desired Settlement: I am looking for an improvement in their communication to provide accurate, useful information. It should no longer provide false and unnecessary information that is misleading.

If the website is going to be down from 10pm PST - 7am PST, the website needs to state that.

If they recommend calling customer service for technical assistance, they need to make sure they are providing it.

If their customer service lines are not going to be open, they need to state that.

Their customer service line also needs improvement.

It is highly unwieldy and asks for account information in the beginning, and then it asks if you are in the armed forces and then prompts you to push 1 or 2. It should have a completely different set up that does not take 2 minutes to reach the main menu!

This whole experience is HIGHLY frustrating and HIGHLY disruptive.

In the end, my problem will not have a resolution as I need to pay for the loans right now.

In the future, this company needs to be accurate and not place misleading or inaccurate information on their website.

Business

Response:

October 23, 2014Dear [redacted]:Kindly accept this letter as a formal response to the inquiry AES received through the Revdex.com concerning the status of your privately-insured educational loan account. We trust the following information will be of assistance.AES currently services two Alternative Undergraduate Program (ALPLN) Loans, respectively disbursed on October 11, 2005 and September 12, 2006, on behalf of the owner, [redacted] ([redacted]). In our capacity as a servicer, AES administers the loans in accordance with the terms of the signed Credit Agreements.We regret that you experienced difficulty accessing the AES website during a time when scheduled maintenance occurred and that this maintenance was not completed by the estimated time of completion. We also understand that you have concerns about how information regarding contacting our office by telephone is presented on the website, and that you have also experienced difficulty in navigating our telephone system. Your suggestions have been forwarded to the appropriate individuals within our technical team for review. We thank you for bringing these issues to our attention.If you have any additional questions, you may call our Customer Service Department at ###-###-####, Ourloan counselors are available Monday through Friday from 7:30 a.m. through 9:00 p.m. Eastern Time.Sincerely,Shelly B. Assistant Vice President Graduate and Professional Services

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Review: [redacted]

I am rejecting this response because it of the lack of understanding, lack of genuine interest and lack of plan of action. I did not attempt to access the website during scheduled maintenance and I did not have difficulty navigating the phone system like the response states. Plus it did not address the desired outcome I was looking for: "In the future, this company needs to be accurate and not place misleading or inaccurate information on their website."

Review: I have a student loan handled by AES. I was past due and I called AES to resolve the balance and start working on the payments. I was advised by several reps over a two week period that if I pay off a part of my balance and make a good faith payment, I would qualify for the reduced payment program. Thereafter, after making the payments and being assured by the reps that I would qualify, I got a letter from AES that I do not qualify, and a customer service rep told me that I do not qualify for any reduced payment programs at all. This was a complete 180 from what was told to me before and I relied on the assurances made by the customer service reps to my detriment, paying over 400 dollars, while thinking that my next 6 payments would be reduced to 100 each, and that I could ease my financial burden for a short period of time that I could use to attend school and gain an opportunity to find a higher paying job that could assist me with completely paying off this liability. I was cheated by AES. They did not commit to their promise and I demand compensation for this lack of dilligence and misrepresentation.Desired Settlement: I want AES to do as promised or refund all of the money I paid towards the loan, so that I can resolve this situation by litigation.

Business

Response:

December 1, 2014Dear [redacted]:This letter is a formal response to your inquiry received through the Consumer Financial Protection Bureau (CFPB) concerning your educational loan account serviced by American Education Services (AES).AES services one, privately-insured Alternative Undergraduate Program (ALPLN) Loan on behalf of the holder, [redacted]. Because AES is not the holder of the loan, it does not have the authority to alter or negotiate the terms of the Credit Agreement and must administer the loan in accordance with the terms of the signed Credit Agreement.Our records verify that, since you have already utilized a total of 12 months between the Temporary Hardship Forbearance and the Reduced Payment (RP) plan, your loan was not eligible to receive an additional period of the RP plan. We regret that you were previously informed that your loan was eligible to use the RP plan again. It is critical that borrowers are always provided timely and accurate information, and you may be assured that we have addressed the situation with the necessary individuals.To assist you, AES forwarded your inquiry to [redacted] for further review. Recently, its office authorized AES to apply the RP plan to your loan, beginning with the installment due January 13, 2015. In addition, [redacted] authorized AES to apply an Administrative Forbearance to your loan from May 13, 2014 through December 31, 2014. Accordingly, the account now reflects a current status, and a payment of $100.00 will be due by January 13, 2015 for your loan.If you have any questions or concerns, please contact our Customer Service Department at 800-233-0557. Loan counselors are available Monday through Friday from 7:30 a.m. to 9:00 p.m., ET.Sincerely,ShellyB. Assistant Vice President

Graduate and Professional Services

Consumer

Response:

I have reviewed the response made by the business in reference to complaint ID [redacted], and find that this resolution is satisfactory to me.

Regards,

Review: American Education Services is the company that manages my student loan. They have demanded a repayment amount that is not practical nor is it fair. I, on multiple occasions, have called to discuss my options for a more appropriate repayment plan. Apparently, I don't qualify for any. So after making a payment of $300 instead of the $600+ amount they're requesting, I get an email saying, "Previous efforts from AES to communicate with you regarding your delinquent student loan account have been unsuccessful and it will be necessary for our office to begin calling you. Click the following link to make your full monthly payment today: [redacted]/signin Please disregard this notice if payment in full has already been made. If you are unable to make payment it is important that you contact us at ###-###-#### to discuss repayment alternatives. Agents are available to assist you between the hours of 8:00 am through 9:00 pm Monday through Friday EST". However, when I call to discuss "repayment alternatives" I am not given any. I'm simply told that I must pay the $600+ amount. American Education Services puts up the front that they are a reasonable servicer with opportunities to find a repayment that suits its consumers. This is not the case. Because of their inability to offer me repayment option like they advertise my credit score has dropped over 200 points. This is shameful and unAmerican!Desired Settlement: The desired outcome is for American Education Services, or whomever the lender is for which they service their student loans, should allow me reasonable repayment options like their website and mail language suggest. The desired outcome would be for me to be able to make a student loan payment that doesn't result in delinquency or credit score penalties.

Business

Response:

September 29, 2014Dear [redacted]:This letter is in regards to the inquiry we received from the Revdex.com (Revdex.com) regarding the status of your educational loan account, serviced by American Education Services (AES). We trust the following information will be of assistance.AES services two privately-insured Alternative Undergraduate Program (ALPLN) Loans on behalf of the owner, [redacted] ([redacted]). Because AES is not the owner of the loans it does not have the authority to alter or negotiate the terms of the Credit Agreements. AES must administer the loans in accordance with the terms of the signed Credit Agreements. The chart below details the loans.Loan Disbursement Loan Original Principal Current Principal Sequence Date Program Balance Balance* l May 23, 2006 ALPLN $32,085,56 $42, 183.42 2 June 8, 2007 ALPLN $32,085.56 $40,265.54*The current principal balance is higher than the original principal balance as a result of interest capitalization (the addition of unpaid accrued interest to the principal balance).We understand that you are having difficulty with making the required monthly payments, and that you are seeking a more manageable repayment plan. As much as possible, we wish to assist you in establishing repayment arrangements that are ideal for your financial situation. However, the monthly payments must be calculated to ensure the loans are paid in full within the terms required by the Credit Agreements. AES is only able to offer repayment options for the privately-insured loans that are authorized by [redacted].Based upon our review, AES’ records confirm that you previously utilized the full amount of time available on the Modified Graduated Repayment Schedule (MGRS). The MGRS temporarily reduced your required monthly payments but did not extend the repayment term. As you may recall, the MGRS offered 24 months of reduced monthly installments (a 50% payment reduction for the first 12 months and payments totaling the 31-day interest amount for the subsequent 12 months). Following the 24 months of reduced payments, the loans returned to a Level Repayment Schedule with monthly payments calculated to ensure all accrued interest and the principal balance is satisfied within the remainder of the repayment term. This means the monthly installment amounts are higher than the monthly installment prior to utilizing the MGRS. It is important to note that the MGRS may only be utilized one-time for the fife of the loans.In addition to the MGRS, AES records confirmed that you utilized the cumulative maximum amount of Temporary Hardship Forbearance. During periods of such forbearance, which for this loan may be applied in 3-month increments, the monthly payment obligation was temporarily postponed. However, as during deferment periods, interest continued to accrue on a daily basis and all unpaid accrued interest capitalized and increase the loan balance at the end of the forbearance. Following the conclusion of the 12"-month of Temporary Hardship Forbearance, AES was no longer authorized to approve an additional period of forbearance.AES forwarded your Revdex.com inquiry to the loans owner for review. However, at this time, [redacted] has not authorized AES to approve an additional period of reduced payment. AES is required to continue to bill your minimum monthly installment ($627.37).At this time your ALPLN Loans are past due from September 7, 2014 in the amount of $323.09. Please note that although partial payments will be applied to your account, any payment remitted that is less than the total amount due will result in your account being placed into a delinquent status. The signed Credit Agreements stipulate that the borrower and cosigner are equally responsible for maintaining a current account status by remitting on-time payments. When your loans are in a delinquent status, AES is required to commence additional servicing activities, including calls, letters, and emails. Such contact must continue until the loans are restored to a current status. Please understand that the owner of your loans may also contact you or the cosigner directly, or it may use a collection agency to assist in obtaining payment for the delinquent amount. Therefore, you and the cosigner may receive collection communications from various offices. Please note that calls from outside collection agencies are not made by AES. AES representatives will always identify themselves and the nature of the telephone call.You may contact our Customer Service Department at ###-###-#### with any additional questions or concerns. Loan counselors are available Monday through Friday from 7:30 a.m. to 9:00 p.m., ET.Sincerely,Shelly B Assistant Vice President Graduate and Professional Services

Consumer

Response:

[To assist us in bringing this matter to a close, you must give us a reason why you are rejecting the response. If no reason is received your complaint will be closed Administratively Resolved]

Review: [redacted]

I am rejecting this response because:

I am a veteran of the USMC and I obtained a loan through AES prior to beginning my military service. I was informed that I could get a reduced interest rate under the SCRA if I submitted a copy of my DD214 stating my active duty service dates. I submitted this official government document to AES mid September. Only to be told on the 10th business day that since my active duty service time could not be "confirmed" via the DoD SCRA Database (even though they had my DD214) and my claim could not be approved. I then went to the DoD SCRA Website and pulled up my information effortlessly. I then proceeded to submit the "eligibility certificate" on 14 October 2015 and it is now 23 October 2015 and I am being told that I have to wait ANOTHER 7-10 business days from the 19th of October (because that is when their system uploaded it) to know anything about my claim. If I started this process mid-September, why wouldn't someone be able to go directly to my claim and either approve or deny it? It would be simple, since they now have both my DD-214 (which still should have sufficed as proof of service) and the "eligibility" certificate.

Review: on 4/2/14 I received the following email from my payroll department:>>> [redacted] 4/2/2014 4:07 PM >>>

Hi [redacted],

This is to inform you of an order of withholding from earnings I received from PHEAA today. I am required by law to withhold 15% of your disposable income for each pay period and submit these payments to PHEAA until a balance of $2,097.03 is satisfied.

If you have any questions, please contact me.

Payroll Coordinator [redacted], PA [redacted] ###-###-#### (Phone)

###-###-#### (Fax) [redacted]

I was first notified that pheaa had interecpted my tax return after calling the treasurey department. They took 4,556 doollars which was my federal refund , I also never received my state return, but that refund was not applied. I immediately signed up with a company called direct student loans . I spoke to a representative from Pheaa and told them about the company I was working with at that time the customer service representative talked to me about their own services that can help satisfy my deliquincey. I declined Pheaa program since I had already started the process with direct student loans. He informed me that he would make a notation on my account that im working with this company. He never mentioned that pheaa was going to begin garnishing my wages. On 4/4/14, I received the above notice from my payroll department. I immediatlely called direct student loans who told me that my loans were being conslidated and waiting for pheaa to receive it. but I will receive a refund back since my loans were paid off prior to them garnishing my wages. Pheaa garnished me after they were paid off for 881.11. I received one refund check for 425.00. when I called pheaa and spoke to a representative she was rude on the phone and refused to help me. I was willing to fax all my documents proving more money was garnished from my pay than 425.00 but she refused to give me a fax number and told me to call the united states department of education because they are the ones who garnished me. I tried to explain to her that pheaa was the only ones who contacted my payroll department and they r the only ones who garnished me . This entire process has caused me such a financial hardship. Im a single mom , going through a seperation, I lost my home and im up to my neck in bills. every single dime matters I cant afford to let any monies go un accounted for. When I filed a complaint with their complainty department. I received a phone call on my voicemail explaining nothing and no written notice as well. the process in which they collected these funds were unjust and created a extreme hardship , now they wont even refund monies owed to me, or accept any documentation I have supporting the above.Desired Settlement: as small as it is I want the remaining money that they garnished from me

Business

Response:

JULY 14, 2014Dear **. [redacted]:This letter is in response to your recent inquiry sent to the Revdex.com (Revdex.com) regarding your previously defaulted federal student loan held by the Pennsylvania Higher Education Assistance Agency (PHEAA). Your inquiry was forwarded to my attention for review and response.Our records indicate that your consolidated student loan was disbursed on July 28, 2005 in the amount of $9,223.82 and serviced by [redacted] ([redacted]). Your loan defaulted on March 29, 2013 after payments were not received consistently for at least 270 days. As the guarantor of this loan, PHEAA purchased the debt. At the time of default, the total balance was $6,114,12. This consisted of $5,909.65 in principal and $204.47 in interest.Our records indicate that we received a Federal Direct Consolidation payoff on April 30, 2014 in the amount of $1,685.58. As a result of this payment, your loan was paid in full through consolidation. Upon review of the National Student Loan Data System (NSLDS), your consolidated loan is serviced by [redacted] ([redacted]). For information on this loan, please contact [redacted] at ###-###-####.In regard to your inquiry, due to your failure to remit voluntary monthly payments, an Order of Withholding was mailed to your employer, [redacted], on March 22, 2013 to begin garnishment your wages. Per federal regulations, up to fifteen percent of your disposable pay may be garnished by PHEAA. Our office applied two (2) garnishment payments toward your defaulted loan. These payments were received on April 15, 2014 in the amount of $109.25 and April 28, 2014 in the amount of $684.73. Because these payments were received prior to the consolidation payoff, they were applied toward your defaulted loan.Additionally, please note that PHEAA did receive a garnishment payment after the consolidation. This payment was refunded to you on May 14, 2014 in the amount of $469.40. If you have records that indicate additional funds were garnished after your loan was consolidated, please send this information to our office via fax to ###-###-#### attn: Default Collections.If you have any questions, please contact our office toll-free at ###-###-####. Representatives are available to assist you Monday through Thursday 8:00 a.m. to 9:00 p.m. EST and Friday 8:00 a.m. to 5:00 p.m. EST.Respectfully,

Review: Customer Service:Their customer service is terrible, they have lied to me on many occasions about sending requested forms or allocating monies to the the proper place I wanted them to go. They berate my family at all hours and threaten them with financial disaster. They do not listen nor care about their "customers"Also, Their payment system is byzantine and designed for failure as well as penalties. I have made multiple payments on my loans with seemingly no reflection on my payment statement especially since they took loans from a former loan carrier.Desired Settlement: I would like someone (one person) assigned to my account to help me through any all process' with this loan until such a time where I am in good standings.I would like all calls to my family to stop.I would like all penalties and fees returned or apportioned to the principal of my loans.And I would like an apology for the wasted time and strife my family has dealt with.

Business

Response:

October 2, 2013

Dear **. [redacted]:

This letter is in regards to the inquiry AES received from the Revdex.com (Revdex.com) regarding the status of your educational loan account, serviced by our office. We trust that the following information will be of assistance.

AES currently services one, privately-insured [redacted]. ([redacted]) Loan on behalf of the owner, [redacted], and two, federally-guaranteed Stafford Loans (STFFRD) on behalf of the owner, [redacted]. AES is not the owner of the loans and does not have the authority to alter or negotiate the terms of the promissory notes. As the service provider, AES is required to administer the loans in accordance with the terms of the signed promissory notes, the servicing guidelines, and federal regulations, as applicable. The chart below details the loans.

We understand from your inquiry that you are dissatisfied with the service you have received from AES in the past. You may be assured that all of our loan counselors are trained to provide accurate, informative, and courteous service to customers. Many customer service calls are monitored to ensure that optimum service is provided. Loan counselors receive remediation in instances in which it has been determined that they did not handle a call appropriately or otherwise meet our standards for excellence. However, if you are ever dissatisfied with the quality of service you receive from an AES loan counselor, you may always ask for the employee’s identification number and to speak directly with a supervisor to address the situation.

With respect to the application of payments, if you do not specifically target payments to individual loans, payments may be prorated across the account. We understand the manner in which partial payments are credited is complicated, but we do attempt to apply the payment in a manner that is most beneficial for you. Generally, when you make a partial payment, we first attempt to bring the loans to the same level of delinquency or paid-ahead status. For example, if you make a partial payment on one loan that is 30 days delinquent and another loan that is 10 days delinquent, a higher proportion of the payment will be applied to the loan that is 30 days delinquent.

If all loans are current, or at the same level of delinquency (or paid-ahead by the same number of days), payments are prorated based on the outstanding principal balance of each loan. Loans with a higher balance receive a higher proportion of the payment- Please note that if a payment is not applied to a loan(s) as you had intended, you may contact a loan counselor to have the remittance reapplied to your account.

Additionally, when remitting online payments, our customers have the option of either selecting Option 1, in which the payments will be applied to all loans that have a payment due at that time, or Option 2, which allows them to target a specific amount to each loan individually. For Option 2, the customer, not AES, has complete control over how the payment is targeted to the loans.

You may also wish to apply for our recurring electronic payment service, Direct Debit. While enrolled in Direct Debit, AES deducts the required installment amount from your designated bank account on the due date each month. Please note the [redacted] Loan qualifies for a 0.25% interest rate reduction while you are enrolled in Direct Debit (the reduction is removed if Direct Debit is canceled), which would assist in reducing the overall cost of the loan. To enroll in this service, you may complete and return the enclosed application, or you may enroll online at www.aesSuccess.org. Upon returning the application or enrolling online, you are required to continue to make payments by mail, online or by phone until you receive confirmation that Direct Debit is scheduled to begin. Please note that if you choose to enroll in Direct Debit, ail of your loans serviced by AES will be enrolled, not just the loan that qualifies for the interest rate reduction. You may, however, provide a separate letter along with the Direct Debit form that includes special written instructions if you do not wish for payments for all loans to be made through Direct Debit.

Your signed promissory notes stipulate that the borrower and any applicable cosigner are responsible for maintaining a current account status by remitting on-time payments. When your loans are in a delinquent status, AES is required to commence additional servicing activities, including attempting calls, sending letters, and generating emails. It is important to note that such contact must continue until the loans are restored to a current status. You may be assured that all of your loans are current at this time. The next installment of $117.66 will be due by October 3, 2013 on the [redacted] Loan. In addition, the two Stafford Loans reflect Administrative Forbearance status through November 1, 2013 prior to the start of your Select 2 Repayment Schedule which goes into effect on December 2, 2013. At that time, monthly installments of $30.34 will be due on the Stafford Loans.

For your convenience, I have asked Research Specialist [redacted] to assist with any additional questions you may have. If you require any additional information or need further assistance specific to this inquiry, please call **. [redacted] directly at ###-###-####. For any general assistance regarding your account, please contact our Customer Service Department at ###-###-####. Loan counselors are available Monday through Friday from 7:30 a.m. to 9:00 p.m., Eastern Time.

Sincerely,

Review: I am currently enrolled full time as a student at a University. I am completing a full time residency internship this semester and because of that I am unable to work a job. For the past 2 months I have been communicating with AES about getting my student loan deferred because I can not work at the time. I have sent them several letters and applications to get the deferment and about a month ago I sent a letter that someone over the phone told me to send in and acted as if it would fix the problem. I continued to call them every week about the status of the deferment process and they kept telling me it was still processing. When they would call me I would tell them I was told it was processing and that was what I was supposed to inform them about also. It has been about 3 weeks that it has been processing and today I received a call from a collection agency telling me AES had turned my loan over to them. The last I heard the deferment letter was still begin processed and now I am turned over to a collection agency who cares nothing about a deferment, they only want my money. Once again, I can not work due to my Student Teaching so there is nothing I can do. AES was supposed to be deferring the loan but instead went and turned it over only to worsen my standing on my loan and also my credit.Desired Settlement: I want AES to actually defer my loan like they were supposed to. I also want them cancel all late charges they have been giving me, due to the fact that for the past couple months they have been jerking me around and not getting my loan under deferment.

Business

Response:

See attached PDF file.