Direct Debit FAQ

General

What is Direct Debit?

Direct Debit is a free, automatic payment service for borrowers who prefer not to write checks to make their monthly loan payments. Once approved, AES will electronically transfer your monthly installment, along with any additional amount you have requested, from your checking or savings account to your student loan account. This automatic transaction will happen on the same date each month.

Why sign up for Direct Debit?

Direct Debit is the easiest and most convenient way to make your student loan payments.

  • No more late fees. Since your installment amount is automatically withdrawn from your bank account, your payments will never be late (as long as the funds are available).
  • Save money. No need to keep a large supply of stamps and envelopes, or pay for checks.
  • Save time. Your time is valuable. The transaction is automatic, so there's no need to make a trip to the post office to mail your payment.
  • Help the environment. Going paperless saves trees and reduces solid waste.

Using this service may also qualify you for an interest rate reduction. Please contact us to find out if your lender offers this incentive.

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Eligibility

Am I eligible?

You are eligible for Direct Debit if:

  • Your loan(s) have entered repayment
  • You are receiving a monthly installment bill
  • Your loan(s) are less than 90 days delinquent
  • Your loan(s) have not previously had a Direct Debit payment denied due to insufficient funds three times in a calendar year

Any loan(s) you are currently receiving interest notices or interest bills for will not be eligible for this service until they have entered repayment.

Can I sign up for Direct Debit if my loan(s) are delinquent?

Yes; however, you should make every effort to satisfy outstanding payments due prior to the Direct Debit effective date. Unsatisfied payments will continue to reflect a past due status which will result in credit reporting, delinquency letters and calls.

How do I apply?

To authorize Direct Debit service, print the appropriate agreement form below. Then complete, sign, and return it to AES.

For borrowers with a current student loan account For borrowers with a loan or loans in default status

  1. Download and print the Direct Debit request form (629 KB PDF)

  2. Complete and sign the agreement form

  3. Mail your form to:

    AES Direct Debit
    P.O. Box 2057
    Harrisburg, PA 17105-2057

  1. Download and print the Default Direct Debit Authorization form (82 KB PDF)

  2. Complete and sign the agreement form

  3. Fax your form to:

    (717) 720-3644
    Attn: AES Default Collections
    Or mail to P.O. Box 8147
    Harrisburg, PA 17105-8147
Can someone other than the borrower sign up?

  • Only borrowers and/or endorsers may sign Direct Debit agreements
  • Endorsers may only apply for the loans they have co-signed for
  • Powers of Attorney may sign the form, provided AES has a copy of the Power of Attorney document(s) on file


How will I know when the service begins?

AES will send you an approval letter after we process your agreement form. Please be aware that this does not mean the service will begin immediately. The month the service will begin, your installment bill will include a message informing you that the payment is scheduled to be withdrawn. This will be your final paper bill.

Will I continue to receive my paper bill?

Once you have received the bill notifying you that your automatic payments will begin, AES will no longer send monthly paper statements. The only exception to this is any time your installment amount has changed. In these cases, you will receive a bill to serve as your notification of the change.

View your billing details 24/7 by logging in to Account Access.

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Terms and Conditions

Can I pay more than my installment amount?

There is no limit to the amount you may have withdrawn from your account monthly. When filling out your agreement form enter the additional amount as instructed. Please be aware that this additional amount will continue to be withdrawn even after a change in installment amount.

Please submit any changes to additional amounts in writing. We will accept changes to additional amounts via email only if they are sent from the email address we have on file. Additional amounts are prorated across all loans with the same due date. It is not possible to apply specific amounts to individual loans with the same due date. You may continue making telephone and online payments in addition to the funds being withdrawn by Direct Debit.

What if my installment amount changes?

You will receive correspondence notifying you of your new payment amount. This new amount, along with any additional amount you have requested, will be withdrawn automatically from your account on your scheduled due date unless you have notified us of your intent to discontinue the service.

What if the funds are not available on my due date?

If you will not have the funds available in your account the date your payment is to be withdrawn, you should notify us immediately. You will need to contact us at least three business days before the transaction, as we may be able to temporarily suspend the service.

Please note: If you suspend Direct Debit and you qualify for a Direct Debit interest rate reduction, you will not receive it for the month suspended. If you have not suspended the service and withdrawal is attempted, your payment will remain outstanding until another method of payment is received. AES will not attempt a second debit from your account if the first is returned due to non-sufficient funds. Please be aware that repetitive occurrences of this type may result in the termination of the service.

What if my due date falls on a weekend or holiday?

If your due date falls on a weekend or holiday, the payment will be withdrawn from your account the following business day.

What if my financial institution information changes?

If you become aware of any changes to your bank account information, you must submit a new Direct Debit application to continue the service. It is important you notify us, as it may be necessary for us to suspend the pending transaction in order to prevent a debit from an inactive account. You will need to contact us for assistance at least three business days prior to your scheduled payment date.

What if I request a deferment or forbearance?

If your loans are approved for a period of deferment or forbearance, the service will automatically be suspended until this period expires. You will receive an installment bill notifying you of the first payment to be withdrawn following the period.

Please note: To prevent an unwanted Direct Debit extraction while your forbearance or deferment request is being processed, you may also contact us to have the service suspended.

What do I do if new loans come into repayment?

Complete, sign, and return a new Direct Debit application for new as well as consolidation loans.

How do I discontinue the service?

You must provide us with signed, written notification in order to cancel or discontinue this service. Please allow up to 10 business days for processing this request. If your due date will fall in this processing window, you will need to contact us at least three business days before the transaction, as we may be able to temporarily suspend the service.

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Account Access