Ibrahim Gardner
American Education Services (AES) is a loan servicer that handles billing and other services on behalf of the U.S. Department of Education and private lenders. While AES does not accept credit card payments directly, there may be alternative methods to use a credit card for repayment, such as third-party payment facilitators or balance transfers. However, these methods often come with additional fees and may not be advisable due to higher interest rates and the loss of borrower protections associated with federal student loans.
| Characteristics | Values |
|---|---|
| Whether AES accepts credit card payments | No |
| Accepted payment methods | Checking or savings account, Direct Debit, check, money order |
| Third-party payment facilitators | Plastiq (with a 2.9% transaction fee) |
| Balance transfer credit cards | May allow transfer of student loan debt with a 0% intro APR, but with a balance transfer fee of up to 5% |
| Cash advance | Possible but risky due to steep fees and high APRs |
| Interest rates | Credit cards generally have higher interest rates than student loans |
| Protections | Federal student loans have borrower protections that may be lost if debt is moved to a credit card |
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What You'll Learn
AES does not accept credit cards for student loan payments
American Education Services (AES) is a loan servicer, not a lender. It handles payments for FFELP and private student loans. However, AES does not accept credit card payments for student loans. You can only use a checking or savings account to pay your bill.
If you have a MEFA Loan, you can make a payment by signing into your AES Account Access and selecting Payments and Billing to get started. You can also make a payment over the phone by calling (800) 233-0557. Additionally, you can make a payment by mail by including your AES account number on a check or money order made payable to AES and sending it to the following address: American Education Services, PO Box 65093, Baltimore, Maryland 21264-5093, USA.
You can also make payments toward your student loans serviced by AES online through the AES website or the AES mobile app. To make payments online, you will need to create an account on the AES website using your name, loan account number, and date of birth. After signing in, you can click on "Make a Payment" and enter your bank account and routing numbers, along with the payment amount.
While it is technically possible to use a credit card to make student loan payments through third-party payment facilitators or balance transfers, it is generally not recommended due to the associated risks and fees. Additionally, you may lose certain protections and benefits offered by federal student loans if you transfer the debt to a credit card.
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Payment methods accepted by AES
American Education Services (AES) is a leading loan servicer and does not accept credit card payments. If you have an AES-serviced FFELP or private student loan, you can pay AES directly.
- Online payments: You can repay your loans through the online portal at AESSuccess.org. You will need to create an account using your name, loan account number or Social Security number, and date of birth. After signing in, click on "Make a Payment," and enter your bank account and routing numbers, along with the payment amount. Review the information and submit your payment.
- Mobile payments: The AES mobile app is available on Google Play and the Apple App Store. You can make payments through the app by linking your bank account.
- Checking or savings account: You can make payments directly from your checking or savings account. However, do note that AES does not accept debit cards.
Please note that AES only services private loans and commercially held Federal Family Education Loan Program (FFELP) loans. Loans held by the U.S. Department of Education and other federal loans are not serviced by AES.
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Third-party payment facilitators
American Education Services (AES) is a leading loan servicer and does not accept credit cards as a payment method. You can only use a checking or savings account to pay your bill. However, there are third-party payment companies that allow you to pay for certain bills or purchases that do not usually accept credit cards. For example, Plastiq is a company that facilitates rent, mortgage, and vendor payments for businesses. They charge a 2.85% fee and send out checks to your creditor. For instance, if you pay off a $50,000 student loan using Plastiq, you will be charged a one-time fee of $1,425.
When taking out student loans, the lender (a bank or financial institution) is typically not the same company that services the loan. Most lenders outsource loan servicing to third-party companies called loan servicers, such as AES. Loan servicers play a crucial role in managing loan repayment, offering repayment options, and handling payments.
If you have questions about your payments, loan status, or repayment options, you can contact AES or your loan servicer for more information.
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Balance transfer credit cards
You cannot pay AES student loans with a credit card. American Education Services (AES) does not accept debit or credit cards. You can only use a checking or savings account to pay your bill.
When choosing a balance transfer credit card, there are several factors to consider. Firstly, look for cards with long 0% APR intro periods, which will give you the best chance to pay off your full balance without accruing interest. The APR will increase to a standard rate after the promotional period ends, so be sure to check what the regular APR will be. Also, keep in mind that most balance transfer cards charge a balance transfer fee, which is typically 3% or 5% of the amount transferred. This fee can sometimes be offset by the interest savings of the balance transfer.
Additionally, pay attention to the annual fee charged by some credit cards. This fee is paid when you first receive the card and at each cardholder anniversary. Lastly, it's important to note that you typically need good or excellent credit to qualify for a balance transfer credit card. This usually means having a credit score of 670 or higher, although card issuers may also consider other factors such as your credit history, income, and existing available credit.
- Wells Fargo Reflect® Card: 0% introductory APR for 21 months on purchases and balance transfers made within 120 days of account opening.
- BankAmericard® Credit Card: 0% introductory APR for 18 billing cycles on purchases and balance transfers made within the first 60 days.
- Citi Simplicity® Card: Low intro APR offers with no late fees or penalty APR if you pay late.
- Citi® Diamond Preferred® Card: One of the longest 0% intro APR periods for balance transfers.
- Citi Double Cash® Card: Simple cash back option.
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Cash advances
American Education Services (AES) does not accept credit cards for student loan payments. You can only use a checking or savings account to pay your bill. However, if you are considering alternative options, it is possible to use a credit card to make a payment towards your student loan. This is done by taking out a cash advance on your credit card and using those funds to pay your loan. However, this method has several drawbacks. Firstly, you may have to pay ATM fees for the cash advance. Secondly, the debt accrued through a credit card cash advance does not offer the same benefits as a student loan, such as income-driven repayment (IDR) plans, deferment or forbearance, and tax benefits. Therefore, it is recommended to consider other solutions first, such as exploring different payment plans or seeking guidance from a student loan counsellor.
If you are considering a cash advance to pay your student loan, it is important to understand the potential consequences. Cash advances on credit cards often come with higher interest rates than regular purchases, and the interest may start accruing immediately without the typical grace period offered for regular purchases. Additionally, cash advances may have a separate credit limit, which could impact your overall credit utilisation and credit score.
It is worth noting that some private lenders offer deferment or forbearance plans if you are facing financial hardship. These plans allow you to postpone payments for a certain period. To explore this option, you would need to contact your lender and inquire about the specific requirements and application process. Each lender may have different criteria for qualifying for these plans.
Before opting for a cash advance, it is advisable to carefully review the terms and conditions associated with your credit card. Understand the fees, interest rates, and any other charges that may apply to cash advances. Additionally, consider reaching out to your school's financial aid office to discuss the timing of aid disbursement or explore alternatives for receiving your financial aid earlier.
While a cash advance may provide temporary relief, it is important to remember that it is a form of debt that will need to be repaid. It is always recommended to explore other options, such as income-driven repayment plans or seeking financial counselling, before taking on additional debt. Making informed financial decisions can help you effectively manage your student loan repayment journey.
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Frequently asked questions
No, American Education Services (AES) does not accept credit or debit cards. You can only use a checking or savings account to pay your bill.
You can pay your AES student loan through your online portal at AESSuccess.org or through the AES app. You can also make a payment over the phone or by mail.
Third-party payment facilitators like Plastiq allow you to use your credit card to pay off student loans. However, they typically charge a transaction fee and have restrictions on which cards are eligible.
A balance transfer credit card allows you to transfer your student loan to a card with a 0% intro APR. However, there is usually a balance transfer fee, and issuers have different restrictions on what debts can be transferred.
A cash advance or convenience check allows you to use your credit line to pay off student loans. This method can be risky due to high fees and APRs, and interest starts accumulating immediately without a grace period.
