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