Comments on: Are AES Loans Federal or Private?

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Tue, 18 Oct 2022 01:07:00 +0000

In reply to Matthew Ferrell. Im not sure of what you can do in this situation, Matthew. You are right that you cannot get a refund if they are commercially-held FFEL loans, and without a balance, you can't get a refund. I think it is also worth pointing out that even if you did have a balance, you might not be able to get any of the FFELP debt forgiven.

By: Matthew Ferrell

Matthew Ferrell — Mon, 17 Oct 2022 18:30:48 +0000

Hi, I paid off two loans serviced through AES in July 2021 that are listed on student aid.gov as FFELP Consolidation loans. Since march of 2020 I paid around $7100 to pay them off completely. AES is tell ing me that as of now t it does not appear that I am eligible for any type of refund through the Fed Student Laon Relief Program. From what I am understanding the work around is to convert them into a direct federal loan but I cannot do that since there is a zero balance. Is there further actions I need to or should attempt to take to try to get some relief from what I paid off?

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Thu, 08 Sep 2022 19:57:08 +0000

In reply to Steph. This will depend upon the loans that you consolidated. If they were FFEL loans, you probably won't be eligible for a refund on either. If they were federal direct loans, you can request a refund for the extra payments.

By: Steph

Steph — Wed, 07 Sep 2022 17:14:37 +0000

Hi. Thanks for your articles! I have a two questions:

I was with AES for around 15 years and in January 2022, I consolidated with FedLoan for the extended PSLF. Because my loans were public/government loans, will I get any money reimbursed for anything I paid beyond the 120 payments?

I continued to make payments to AES during covid until the time I consolidated with FedLoan. Will AES reimburse me for the payments made between March of 2020 and January of 2022 (when I consolidated) under the Cares Act?

Thank you!

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Sat, 27 Aug 2022 01:21:19 +0000

In reply to Ed. Hi Ed, You probably qualify. The FFELP loans are tricky because some of them are federal, but not federally-held. At this point we haven't gotten guidance from the Department of Education. You may also have to consolidate them to qualify for forgiveness. However, my guess at this time is that you will eventually qualify. Update 9/8/22: Here are the latest details on how they are handling FFEL loans.

By: Ed

Ed — Fri, 26 Aug 2022 21:29:27 +0000

Good afternoon,

My loans I have are listed on student aid.gov. It says the are FFELP consolidation and I also have a PELL GRANT if $450. Do I qualify for the foregiveness? They are serviced thru AES.

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Fri, 26 Aug 2022 13:53:07 +0000

In reply to Stephanie. I'd be happy to untangle that. You did an excellent job explaining the situation! FFEL loans were issued by private lenders, but guaranteed by the federal government. These are technically federal loans, but they do have some restrictions. When you consolidated the loan, it could still be an FFEL loan if you used another FFEL lender for consolidation. It is also possible you consolidated into a direct loan. (If you consolidated in the last 10 years or so, it is likely a direct loan... if it was longer ago, it is probably an FFEL consolidation loan). If you have an FFEL consolidation loan, you can consolidate it again, this time into a federal direct loan. If Studentaid.gov has it listed as an FFELP consolidation loan, it is a federal loan, but not federally-held. You can go through federal direct consolidation if you would like to convert it to a federal direct loan.

By: Stephanie

Stephanie — Fri, 26 Aug 2022 13:26:03 +0000

I am very confused. I had FFELP loans, which I think are Federal. I did a consolidation and they went to AES. Does that mean they are private now or are they Federal and just being serviced by AES? Some sites are saying anything AES is commercial and will not qualify. Some are saying if you can find them on the studentaid.gov site they are Federal. Mine are listed on the studentaid.gov as being serviced by AES and listed as “FFELP Consolidation”. Can you untangle that??

By: Michael P. Lux, Esq.

Michael P. Lux, Esq. — Thu, 25 Aug 2022 00:16:25 +0000

In reply to Jay. Hi Jay, Unfortunately, its not really possible to convert private loans such as yours into a federal loan.

By: Jay

Jay — Wed, 24 Aug 2022 21:58:11 +0000

Will Biden’s $10,000 loan forgiveness program apply to AES loans?
My loans were originally direct federal loans, I only refinanced them because everyone said it would be cheaper to pay back. That company sold my loans like 3 times and now AES has them.
Can I sell them back to the Federal Government so they can be forgiven?