Lock Haven University of PA

Student Financial Services Office

AES/PHEAA Suspends Role As Lender

Q&A

Q. AES/PHEAA has suspended it’s participation as a Federal Stafford, parent PLUS, and Grad PLUS Loan lender.  How will this affect me?

A. There is no need to worry.  These loan programs will continue.  Students and parents, who in the past have used AES/PHEAA as their lender, will simply select a new lender through which to borrow future loans.  New borrowers will not have the option of using AES/PHEAA as their lender, but will have many other participating lenders from which to choose.

Q.  Is AES/PHEAA still in the loan business?

A.  Yes.  Although they are no longer a lender, AES/PHEAA still plays a major role in the loan process as a loan guarantor, originator of loan funds, and as a loan servicer. 

DEFINITIONS: 

Loan guarantor:  AES/PHEAA guarantees Federal Stafford and PLUS Loan lenders that it will reimburse them should a borrower default on a loan obligation.

Loan originator:  AES/PHEAA will assist borrowers with obtaining their loans (e.g. completing promissory notes, providing borrowers with information about approved loan amounts, loan term, etc.).

Loan servicer:  AES/PHEAA sends payment statements, collects payments, maintains records of payments and balances, remits funds to the promissory note holder, and follows up on delinquencies.

Q.  What if I’m not sure whether AES/PHEAA is my lender?

A.  You can find out if AES/PHEAA is your lender by logging into Account Access at the American Education Services (AES) web site, www.aessuccess.org.  Or contact AES at

1-800-692-7392. (Note to SFS staff: AES/PHEAA lender code = 828924)

Q.  AES/PHEAA is my lender.  How do I select a new one?

A.  Select a new lender by completing a new loan application, better known as a Master Promissory Note (MPN).  This can be done via the American Education Services (AES) web site at www.aessuccess.org.  Go to the Student Loans section to “Apply Now”.

Q.  When should I complete a new Master Promissory Note (MPN)?

A.  Complete the MPN via the AES web site, www.aessuccess.org, at your earliest convenience and well before the start of your next enrollment term (e.g. summer; fall).   

03/08