AES Student loans

American Education Services is a division of Pennsylvania Higher Education Assistance Agency (PHEAA), based in Harrisburg, Pennsylvania and their regular offices within the whole country.

AES is one of the biggest organization of its kind in the U.S. AES is devoted to helping young people and their families to get access to higher education. AES designed student loans to help those who might have problems with paying their fees.

The loans are divided according to the different needs of different group of people. Therefore there are four types of loans: Stafford Loans, Parent PLUS Loans, Graduate PLUS Loans, and Alternative Loans.
Students who consider application should make sure than they have exhausted any other source of financial aid such as scholarships and grants from school and other institutions.

First of above mentioned is Stafford Loans. It is devoted to pay for the college education. It has several advantages that make it accessible for undergraduate students.
The loan can be deferred for those who qualify. The repayment can be made before the agreed time and no negative consequences (such as penalties) will be suffered. In some cases the daily interest created during the time of study and six months after graduation can be subsidized by the government. The interest rate is fixed year by year. At the moment, for all the loans granted between 1st of July 2009 and 1st of July 2010 it is 6,8% and for those who were subsidized it is 5,6%. There is also a fee of total amount of loan given, which is between 0%-1,5%.

There are some certain circumstances that must be met when applying for this loan. An aspiring person needs to have a citizenship of the United States, be U.S national or a U.S permanent resident. In some cases people from outside the United States can submit their application. Candidate must prove his acceptance or attendance in the school that is enrolled to take part in the Federal Family Education Loan Program. If an applicant has previously failed to pay any money to federal education aid or has unpaid debt he needs to give evidence that the repayment of these covenants will have finally been made on the conditions agreed between him and the lender. All the students that want to get a loan must fill in the application of the Free Application for Federal Students Aid (FASTA) before the proper application. Male students aged from 18 to 25 have to register with the selective service.

Further reading on Stafford Loans

Loans are dedicated not only to the students, but also to their parents who pay for their children's education. Children must attend college at least half time. The programme is called Parent PLUS Loans. The money is not received by parents, but it goes directly to the school that their child attends. The interest rate for this kind of loan is fixed at 8,5%, which can become tax-deductible. The rate can go up, but not more that to 9,0%. The fee of total amount of the loan given is 4%. There are a lot of advantages of this programme, like no income requirements or possibility of agreeing for flexible payments option (e.g. payment can be deferred in the time when a family finds it hard to pay it off) or an opportunity to pay off the debt earlier with no consequences. Poor credit doesn't disqualify the parents. They can get more than one loan at a time, e.g. to pay for the education of more than one child. Alike in the Stafford Loan, the standard time for repayment is 10 years.
There are a couple of programmes to choose from, and it is very important for the parents to make sure that the amount of loan given is enough to cover education expenses. The following conditions must be met: Parents have to fill in the FASTA form as well as they have to get Student Aid Report and aid awards letter from school that the child is going to attend. The citizenship of the United States is obligatory (with possible exceptions). An aspiring person must be student's either natural or adoptive parent (stepfather/stepmother can also be eligible), and be creditworthy. Student must meet the same requirements as in the case of applying for Stafford Loans, plus he has to prove that he is dependent on his parents (for example, if the child is married or were born before 1st January 1986, he is a independent child).

Further reading on Parent Plus Loans

Graduate PLUS Loan is a supplementary programme to the Stafford Loan and can only be applied it Stafford Loan has been applied before and came out as not enough supportive. The programme was created for the graduate and professional students. The interest rate is fixed at 8,5% and will not exceed 9,0%. There is also a loan fee, which is 4,0%. The requirements are basically the same as for the Stafford Loans plus student must prove that he is independent. A person that applies must have completed Bachelor's degree. Only students who are enrolled to the Master's, doctoral degree, or professional certificate (except for the teaching one) can be considered to be eligible for this programme.

If any of these loans are not satisfactory, AES can provide with Alternative Loans. Terms can be less beneficial as in the previously mentioned cases

Further reading on Alternative Student Loans