American Education Servicesunethical business practices

Review updated:

I consolidated my student loans through a company called ISM which sold my loans or was taken over by AES, not sure which. Once mine and my husbands loans were through AES it has been a living hell. First, I was eligible for interest rate discounts through ISM which AES said they would honor. The 2nd month they had my loans they sent me a letter saying I wasn't eligible for the discount because I was late. I had direct debit out of the account but had to make 1 payment by check during the change over. They said that was the payment that was late even though they had only given me 10 days notice that I would need to make a payment that month instead of direct debit. After filing an appeal & losing I sent a certified letter in writing. Finally, I received my discount back. Another issue, AES refuses to send me paper statements. They say because I have the direct debit they will not send me paper statements. So after 6 months w/ them I went online to check my balance, since I always pay extra I was expecting to see a dent. Boy was I surprised to see that I had paid off about $5.00 w/ my $295 a month payment! I again called and was told that anything extra I paid went to interest not the principal even though I'm on a standard repayment plan, no graduated plans, no interest only for the first 3 years, nothing.See the Top 10 Worst Companies in Harrisburg, PA My original loan balance was $37, 000, it's going to take me 20 years to pay it back at $295 a month w/ an interest rate of 5.625%. Does this make sense to anyone? Fast forward 2 years. My husband's loans are now reaching the 24 months of on time payments mark. The month the interest rate was due to drop I received a letter in the mail saying we had not made our full payment last month so the interest rate deduction was gone. I looked at the bill, minimum payment due was $53, looked at my check book, I had paid $75. Called the company, they told me that if I looked at the spot on the bill where the different loans I had consolidated were broken up I would see that the amount due on each loan had gone up to equal $92 a month. When I asked why my bill wouldn't reflect this as the "amount due" I was told because I have the option to only pay interest, which was the $53 and I should always look at the amount due on each individual loan to ensure that I am paying the right amount if I want to keep my discounts. WHAT?! After another 6 months of phone calls, appeals, & certified letters I finally received the rate reduction back. It has been awful. I have been looking for another company but I'm finding that once you have consolidated once it's extremely hard to switch through another company. My advice, don't get a loan from AES ever!

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