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American Education Services Implements Student Aid Enhancements.

Changes Result From Higher Education Reconciliation Act of 2005

HARRISBURG, Pa., Aug. 17 /PRNewswire/ -- American Education Services (AES) announced today that they've successfully implemented several provisions resulting from the recent reauthorization of the Higher Education Reconciliation Act of 2005 (HERA), which will have a positive effect on AES borrowers.

Prior to the implementation of these changes, borrowers were required to make 12 consecutive, on-time payments in order to rehabilitate themselves out of default status. Under HERA provisions, guaranty agencies were given the option to convert existing rehabilitation agreements from 12 payments to nine. AES has chosen to adopt this change; the end result enabling borrowers to rehabilitate their defaulted loans faster. For rehabilitation agreements beginning on or after July 1, 2006, the borrower must make nine payments within 20 days of the loan due date during 10 consecutive months.

The changes implemented also include a new military deferment. Borrowers who serve in an active duty capacity during a war, military operation or national emergency are eligible for up to three years of deferment on their loans made on or after July 1, 2001. Their consolidation loans are eligible if all the Title IV loans included in the consolidation were disbursed on or after July 1, 2001.

"The Higher Education Reconciliation Act of 2005 brought about many changes to the student loan industry," said Dick Willey, AES President and C.E.O. "In many cases these changes benefit the borrower and we've quickly moved ahead with implementing them. It is our goal to assist students and their families in every manner possible."

The changes resulting from the Higher Education Reconciliation Act of 2005 are published by the U.S. Department of Education (ED) in the Dear Colleague Letter (DCL) GEN-06-02. This document can be accessed at http://www.ifap.ed.gov/.

About AES

American Education Services (AES) is a national financial aid services organization serving millions of students and thousands of schools through our guaranty, servicing, grant and financial aid processing systems. The funds generated from our extensive operations are used to improve education opportunities and lower the cost of assistance for students and their families while streamlining the entire process for the higher education community. For more information, please visit http://www.aessuccess.org/.

CONTACT: Keith New, +1-717-720-2509, knew@aesSuccess.org; Nicole Elbertson, +1-717-720-2509, nelberts@aesSuccess.org

Web site: http://www.aessuccess.org/ http://www.ifap.ed.gov/
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Date:Aug 17, 2006
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