If you have FFEL (Federal Family Education Loan) student loans, then your federal loan servicer is AES (American Education Services) as it is the only servicer that services FFEL loans. Borrowing student loans come with a lot of burden and some times it is likely that you are looking to refinance your student loans owing to good offers in interest rates and a better repayment term. AES student loan refinance does not always help you receive a lower interest rate unless you have a credit score above 700. If you are looking to refinance your student loans that are with AES, then this article is for you.
Table of Contents
- Top lenders refinancing AES student loans
- American Education Services
- Pros of refinancing student loans
- Cons of refinancing student loans
- What should you do
Top lenders who refinance AES student loans
Below is a list of lenders who can help you refinance AES student loans.
|Lenders||Fixed rates||Variable rates|
|Common bond||2.98 - 5.79%||1.99 - 5.61%|
|Earnest||2.98 - 5.79%||1.99 - 5.64%|
|LendKey||2.99 - 8.77%||1.98 - 8.55%|
CommonBond was found in the year November 2011, headquartered in new york. They introduced refinancing for Parent PLUS loans and AES student loans. Refinancing ideally simplifies the process of repayments with lower interest rates and new loan terms. It is advisable to refinance after weighing the pros and cons.
Learn more about CommonBond Student Loan Refinance
Earnest offers services like personal loans, private student loans, and refinancing of students loan. The best factor refinancing with earnest is that you do not pay penalties if you miss making your payments with earnest. If you have a job offer handy and still in the final year in school, Earnest helps you refinance your student loans.
Learn more about Earnest Student Loan Refinancing
LendKey assures to help you refinance your student loans effectively. LendKey helps you in managing your student loans. The main advantage is that they have good unemployment protection benefits.
Learn more about LendKey Student Loan Refinance
American Education Services
American Education Services (AES) is a service provider, established by the Pennsylvania Higher Education Assistance Agency (PHEAA), that services millions of student loan borrowers, especially the ones in the federal family education loan program and some private student loans as well. FedLoan servicing and AES are the two services under the PHEAA. AES manages the payments you make and allows you to make changes to repayment plans.
You might be interested in refinancing owing to the better interest rates that you found in the market or a better offer from another lender to pay back your student loans. If you are looking to refinance your loans with AES, then you are probably looking to refinance your federal student loans. But this can be an advantage for you only if the interest rate you are looking to refinance your student loans with is only less than the interest rates that are fixed by the congress every year. Or if your experience with your student loan servicer is bad and you are looking at changing your student loan servicer. Refinancing when done in a careful and calculated manner, can prove as a great financial move and you can end up saving even up to thousands of dollars.
Refinancing your federal student loans can deprive you of your potential benefits that are provided by the federal government for your benefits such as Forbearance and deferment and income-driven repayment plans when you are hit with hard times paying off your student loans.
Learn more about the Best student loan servicers
Here is a list to help you with the best student loan refinance lenders
Benefits of refinancing AES student loans
Before we check the list of the advantages of refinancing your student loans with a private lender, let us also consider the consolidation of all your student loans into one student loan such as a direct or direct PLUS loan.
The main problem with the FFEL is that you cannot apply for Public Service Loan Forgiveness (PSLF). With the consolidation of your federal student loans, you can gain access to this benefit.
You can also get access to other Income-driven Plans. This is because for FFEL student loans, you are only eligible for the Income-based repayment plan, but not the other plans such as the ICR (Income-Contingent Repayment plans), PAYE (Pay As You Earn), REPAYE (Revised Pay As You Earn). With the consolidation of all your student loans, you can now get access to all those Income-driven repayment plans.
Now refinancing your student loans with a private lender also has its own advantages. If you are looking to refinance your student loans with a private lender it should only mean that you are doing good financially and you have a great credit score and are ready to get those student loans with low-interest rates.
In case you have multiple AES student loans, then refinancing into one student loan allows you to make only a single payment towards all of your loans, thereby allowing you to make only a single payment each month and reducing all the complexities of calculating how much to pay for all the loans together. You also have a lot of flexibility with private lenders as they offer both fixed and varied rates of interests and flexible terms of repayment, therefore, giving you a lot of options to opt for.
Disadvantages of refinancing AES student loans
As mentioned before, refinancing your student loans with private lenders exclude you from all the federal benefits that are being provided for your sake such as student loan forgiveness, IDR plans, and many such benefits of the federal government.
Moreover, you require a good deal of credit score and an excellent debt-to-income ratio if you want to refinance your student loans with a private lender and expect the lender to give you a low rate of interest and reasonable term to deal with.
These are the majority of the factors that make refinancing of the student loans difficult to deal with.
Looking for student loans? Find the best student loans just for you
What should you do?
Refinancing your student loans can be a good or a bad strategic move in your financial plan based on the situation you are in. If you have a good credit score and a great debt to income ratio and are looking to get out of your student loan debts as quickly as you can, then refinancing your AES student loans can be a good move. But proper research of all the companies that provide refinancing of student loans has to be performed.
But if you do not meet the above conditions, sticking with your current plan or consolidating your student loans to a better federal loan can be a good move. But if you are barely able to make your ends meet, therefore, struggling to pay your student loans, then you can opt for forbearance or deferment.
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