Electronic Funds Transfer Agreement and Disclosure Statement for Monthly Recurring Direct Debit
A. Preauthorized Recurring Debit Payments
B. The Type and Nature of Transfer
C. Questions about Your Electronic Funds Transfer
D. Revocation of Authorization
E. Forbearance, Deferment or Grace Period
G. Paid Ahead Status
H. Interest Rate Reduction
K. Limitation of Liability
F. Termination, Changes, Insufficient Funds
The Pennsylvania Higher Education Assistance Agency, doing business as American Education Services ("AES"), will electronically transfer funds from your designated checking/
savings account(s) to the student loan account(s) of your designation (“Transfer (s)”).
Each Transfer will be made monthly on the due date of the student loan payment(s) in question in an amount equal to your monthly student loan(s) installment amount, or the
interest bill that is due, plus any additional amount you request by way of this Agreement. If your due date falls on a weekend or a holiday, you will receive credit for the payment as
of the due date listed. Please allow 2 to 3 business days for the payment to display in your account details.
If you have questions about Transfers made under this Agreement, contact AES in writing at American Education Services P.O. Box 2057, Harrisburg, PA 17105-2057, by phone at
1-800-233-0557, or by e-mail through the contact us feature of Account Access.
After you have authorized AES to make Transfers pursuant to this Agreement, you may stop a Transfer by providing timely notice to AES using the telephone number, address, or
email listed above or by visiting aesSuccess.org
and logging into your online account. AES must receive your request at least three (3) business days before a scheduled Transfer
date in order for the Transfer to be stopped. A transfer can be suspended for one due date, or cancelled for all future due dates. You are responsible for making all required payments
on your student loan after you suspend or cancel Transfers.
If you preauthorize Transfers and are subsequently granted a forbearance, deferment, or grace period. Transfers will be suspended and will resume with the first payment due
following the deferment, forbearance or grace period, unless you cancel future Transfers as set forth above. If you are eligible for an interest rate reduction, that reduction may be
suspended until you resume with the first payment due following the deferment, forbearance or grace period. If your loans are past due, we may apply a forbearance to cover all
payments due before automatic debit begins. If a forbearance is placed on the account all unpaid interest will be capitalized. If you are billed for interest during your Deferment,
Forbearance, In School or Grace period, then the amount of your interest bill may be debited based on your lenders.
AES reserves the right to make changes to this Agreement or to terminate this Agreement at its sole discretion. It is your responsibility to ensure that you have sufficient funds to
cover each Transfer. AES reserves the right to collect from you any additional fees, as permitted by law and/or your promissory note(s), resulting from non-sufficient funds. If your
payment is returned due to non-sufficient funds, your Direct Debit may be cancelled. The number of returned payments in a specific time period is set by your lender. Visit
for more information. AES may represent an unsuccessful monthly debit to your financial institution. You are required to submit a new Agreement in order to
preauthorize Transfers for any additional student loans or any student loans previously excluded from this Agreement. If a Transfer will vary in amount from the previous Transfer
under the same authorization, AES will inform you of the new Transfer amount at least 10 days in advance.
AES will debit your scheduled installment amount and any additional amount you have requested on the due date each month, even if your account is in a paid ahead or partially
paid ahead status. You cannot pay ahead interest bills. Visit aesSuccess.org/paidahead
to learn more about paid ahead. You may make additional, one time payments at any
time by visiting aesSuccess.org or mailing a payment to the payment address listed on your monthly statement.
If your student loan lender offers an interest rate reduction while your loans are enrolled in Direct Debit, the interest rate reduction may be lost if Direct Debit is cancelled for any
AES shall not be liable in its performance of the Direct Debit service except for its gross negligence or intentional misconduct in performing the service. In no event shall AES be
liable for exemplary, special, consequential, or punitive damages arising or resulting from Direct Debit.
I. Extraction Variance
AES will debit your scheduled installment amount or interest bill amount and any additional amount you have requested on the due date each month. If your extraction amount
changes under the same authorization you will receive advanced notice from AES as to the new extraction amount and when it will become effective. However, any changes in your
extraction amount equal to or less than $1.00 may not be communicated. By accepting the terms for Direct Debit, you are agreeing that a change within this range is something that
can be anticipated by you and does not need communicated.
J. Consolidation Loan Groupings
Subsidized and unsubsidized portions of a federal consolidation loan may be assigned individual loan numbers. However, these subsidized and unsubsidized portions are serviced
together and considered to be a single consolidation loan. Because of this, if a new loan is added to your existing consolidation group it will be automatically added to any existing
Direct Debit agreement. This ensures that all the individual consolidation portions remain aligned.