Report: #268843

Complaint Review: AES - American Education Services

  • Submitted: Mon, August 20, 2007
  • Updated: Mon, August 20, 2007
  • Reported By: Seattle Washington
  • AES - American Education Services
    PO Box 2461
    Harrisburg, Pennsylvania

AES - American Education Services They said, "You should have shopped around!" Harrisburg Pennsylvania

Show customers why they should trust your business over your competitors...

Because my local community colleges no longer accept Federal Student loans, I took a private loan out via Bank One and Chase Bank. The loan was substantial: $23,000. I signed my Note at an interest rate of 4.5% with no prepayment penalty.

One month later, when my first bill arrived, my interest rate had gone up to 9.8%! The payment due was TEN TIMES the amount that I had been told I would be paying. When I called Bank One, they said the loan had been sold to AES. I called them, and they told me that there was no cap on my interest rate and that it was going to adjust quarterly.

I asked if I could defer my payments, and the woman I spoke with told me it was too late and that I could not refinance, and could not prepay the loan in full without penalty.

I told her this was not the loan I had signed on for, and she told me that I "should have shopped around a little more".

When I asked for a signed copy of my Note agreement, all they sent me was an UNSIGNED copy of a Note Disclosure Statement (not what I asked for at all) with a breakdown of my loan payment options at an interest rate of 9.8%.

Now I am going to end up paying $60k on a $23k loan that only bought me six months of full-time classes at a community college.

I can no longer afford to take any more classes; my time is spent working to try and pay down this ridiculous loan.

Seattle, Washington
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This report was posted on Ripoff Report on 08/20/2007 12:59 PM and is a permanent record located here: The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year. Ripoff Report has an exclusive license to this report. It may not be copied without the written permission of Ripoff Report. READ: Foreign websites steal our content

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