Are you making payments on several different student loans? You might wish to consider an AES student loan consolidation that would combine all of your federal loans into one with American Education Services.
What are the advantages of an AES student loan consolidation?
Consolidating your loans allows you to lock into a fixed interest rate, which may be lower overall than the effective rate on your existing loans. And, you'll just have one bill to pay while lowering your monthly payments. You won't have to pay any application fees or deal with credit checks, plus you won't need a cosigner.
How do I know if I'm eligible?
Basically, if you're a recent graduate, a borrower who is already paying back your loans, or a parent with a PLUS loan, you should qualify. If you're still in school, but attending less than half time you are eligible for federal consolidation. Only federally guaranteed student loans can be included in a federal consolidation loan. If you've graduated in the past six months and are still in your federal loan grace period, you're eligible for a lower interest rate on your student loan consolidation.
Borrowers must have at least 1 PHEAA/AES-guaranteed loan to be eligible for federal loan consolidation. Any federal education loans that are in default and held by another lender are not eligible to be included in your federal AES student loan consolidation. If your federal education loans are held by AES, they can be included in your consolidation after they've been rehabilitated.
If you obtained a Federal Consolidation Loan in the past, and you have acquired additional federal education loans since then, or you did not include all eligible loans in your previous consolidation, you may be eligible for a new AES student loan consolidation.
Parents who took out loans for their child's education are also eligible for student loan consolidation. An AES student loan consolidation offers parents the same benefits as those enjoyed by student borrowers.
If parents have PLUS loans for more than one child, they must consolidate them separately. Federal law prohibits the consolidation of multiple accounts together, except for a Federal Spousal Consolidation.
Pros and Cons of A Student Loan Consolidation
As the old saying goes, "There are two sides to every coin". Here are some factors to consider that may help you make the best decision for your situation.
Pros:
* Reduced monthly payments
* Just one bill to keep track of
* Just one lender to deal with
* Manage your loans online 24/7.
* No prepayment penalties
* Fixed interest rate
* You do not need to be employed.
* Your credit rating does not affect your eligibility.
* Any number of loans may be consolidated
* No minimum balance per federal rules
* Up to 30 years to repay with flexible payment options - level, graduated and income sensitive.
Cons:
* Longer repayment period
* More total interest to pay back
* You may lose some current loan incentives
* Interest rate is calculated as the weighted average of all loans being consolidated, then rounded up to the nearest 1/8 of a percent
* Loss of deferment subsidy for Perkins loans
After you have applied:
The consolidation process can take up to 8 weeks. Until your loan is funded you'll need to continue paying any student loan bills you receive. Repayment begins within 60 days of the loan funding. The loan funds will be sent directly to the creditors. And, there is no grace period.
While a consolidation loan offers you a longer repayment term and lower monthly payments, keep in mind that the total interest payback over the life of the loan will be much higher. Having said that, a Federal AES student loan consolidation does allow you to combine one or more existing student loans into a single new loan. If making your monthly student loan payments is putting a strain on your budget, then consolidation might be the smartest option for you.
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