VSAC transferred the servicing of your Federal Student loans to American Education Services and the guarantee of all VSAC Federal Student loans to the Trellis Company, an approved Federal Guaranty Agency, over the weekend of March 16th. CLICK HERE for more information.
Federal Loans Transfer
Over the weekend of March 16th, VSAC transferred the servicing of your non-defaulted Federal Loans to American Education Services (AES). VSAC is not selling its Federal Loans; however, AES will service and manage the Federal Loans under a partnership with VSAC. VSAC will continue to originate and service VSAC Private Education loans.
Additionally, the guarantee for all Federal loans, including both defaulted and non-defaulted ones, was transferred to the Trellis Company (Trellis), an approved Federal Loan Guaranty Agency.
We've sent letters to all customers affected by these changes. If you have any questions, the two tabs below provide answers to commonly asked questions about the service transfer.
The following Q&A provides details on VSAC's federal loan transfer to American Education Services (AES).
- When will the transfer occur?
VSAC will transfer the servicing of your Federal Loans to American Education Services (AES) on March 16th, 2024. AES will send you a welcome letter once the loans are fully loaded on their system which is scheduled to be completed by no later than March 28th, 2024.
- What loans are included in the transfer?
All Federal Loans including Stafford, Parent PLUS, Grad PLUS, Federal Consolidation Loans, Health Education Assistance Loans (HEAL) and HEAL Consolidation Loans will have their servicing transferred.
- Will VSAC still service VSAC Private Education loans?
Yes. VSAC will still service VSAC Private Education Loans. If you have set up a recurring payment via VSAC’s online LoanPay product, and you have VSAC Federal Loans and VSAC Private Loans, you will need to adjust the amount of that payment to reflect what you wish to pay toward your Private Loans after 3/15/24.
- Is there anything I should do prior to the loans being transferred?
You are doing it right now! Reviewing these Q&As is the best way to prepare yourself for the upcoming loan transfer.
Also, to ensure you receive information in a timely manner please be sure your contact information, including your email address, is up to date with VSAC before March 15th, 2024.
- Should I continue to send payments/paperwork/questions to VSAC prior to the transfer?
Yes! VSAC continues to service your Federal Loans prior to the transfer. All payments, paperwork, and correspondence related to your Federal Loans should be sent to us through 3/15/24. Following that you will need to direct payments and communications for your Federal Loans to AES (see below for contact info).
- Does this mean I now have “Direct Loans”/Am I now eligible for the Direct Loan benefits like Public Service Loan Forgiveness (PSLF)?
Nothing about the terms and conditions of your loans will change as part of the servicing transfer.
If you are interested in pursuing the benefits of the Direct Loan programs including PSLF and the various income-driven repayment plans available only with Direct Loans, you will need to consolidate your loans into the Direct Lending program.
- What is American Education Services' (AES) contact information?
The contact information for American Education Services is as follows:
Website: https://www.aessuccess.org/
Phone: 1-800-233-0557
Payment Address:
American Education Services
P.O. Box 65093
Baltimore, MD 21264-5093Correspondence Address:
American Education Services
P.O. Box 2461
Harrisburg, PA 17105-2461NMLS#: 1619466
- When will AES contact me?
AES will contact you after your student loan account has been fully loaded to their system. The transfer is scheduled to begin on 3/16/24. If you have questions any time after the transfer date, give AES a call at 800-233-0557.
- Will I have a new account number with AES?
Yes. AES will assign a new account number to you once it loads your loans to its system. AES will inform you of your new account number in the first communication it sends to you.
- To whom will I make Federal student loan payments once AES is my servicer?
After your Federal Student Loan account transfers to AES, you will make payments to them directly. AES will let you know when your payments will be due. Please wait until you have received a communication from AES regarding the transfer to start sending payments to AES. Remember if you have VSAC Private Loans, you’ll make payments to VSAC for those.
- If I am enrolled in direct debit with VSAC will the automatic payments continue with AES?
It depends on what manner your direct debits are set up. If your payments are set up through VSAC’s online payment portal (also known as “Loan Pay”) these payments will NOT transfer over to AES. Please note, if you also have Private Loans with VSAC your recurring payments in LoanPay will continue and any payments will be applied to your VSAC Private Loans. If you wish to adjust the amount you pay monthly to cover just your Private Loans you will need to do so in the LoanPay system. Click Here
If your recurring payments are set up through our older, paper application process known as “Elect Pay” these debits will transfer over and continue with AES. If you also have VSAC Private Loans “Elect Pay” will continue with us as well for the Private Loan payments.
Please monitor for communication from AES once your loans have transferred to confirm if your recurring payment will continue or not.
If you use your electronic bank or bill pay service to make payments for your Federal Loans you will need to provide your bank or bill pay service with the following payment address for AES:
American Education Services
P.O. Box 65093
Baltimore, MD 21264-5093- What if I make my payments manually? How will I do that now?
If you make your student loan payments online, over the phone, or in the mail, you will need to begin making your Federal Loan payments to AES after your loan account transfers.
To make phone payments please call 1-800-233-0557.
To pay online please visit https://www.aessuccess.org/
To send payments in the mail please make your checks payable to “American Education Services” and mail your check to:
American Education Services
P.O. Box 65093
Baltimore, MD 21264-5093If you want to explore other methods for making payments, contact AES for information.
Again, if you have Private Loans those payments continue to go to VSAC.
- VSAC is also transferring the guarantee of my loan to the Trellis Company. What is a Guarantor?
VSAC, as a state nonprofit organization, has been in an agreement with the Department of Education to administer a loan guaranty program. When your loan was made, you received a notice of guarantee with relevant loan information and evidence that the loan was insured (guaranteed) under the VSAC’s loan guaranty program. Following guidance from the Department of Education, VSAC is transferring the guarantee on your loan to the Trellis Company (an approved Federal Guaranty Agency). The contact information is 1-800-338-4752 Monday through Friday, 8:00 a.m. to 5:00 p.m., Central Time or by email at Trellishelps@trelliscompany.org
- Is anything else about my loans changing as part of the transfer?
None of the terms and conditions of your loans will change during the transfer. Your balances, loan types, repayment plans, loan term remaining, and interest rates will all be the same as they would be if VSAC was the servicer.
- Can I still consolidate? Should I consolidate now or wait until after the transfer?
You remain eligible for Direct Loan consolidation and could potentially benefit from the IDR Waiver which is set to expire on April 30th, 2024. Consolidation can be initiated at any time. If the consolidation is not complete prior to the transfer, your consolidation would be completed by AES and the servicer you chose to consolidate with.
The following Q&A provides details on VSAC's Federal Family Education Loan (FFEL) Guarantor Transfer to Trellis.
- When will the loan transfer to Trellis occur?
VSAC will transfer your defaulted federal loan(s) to Trellis over the weekend of March 16, 2024. Trellis will send you a welcome letter once your loan(s) are loaded on their system.
- What loan(s) are included in the transfer?
All defaulted federal loans including Stafford, Parent PLUS, Grad PLUS, SLS and Federal Consolidation Loans will be included in the transfer to Trellis.
- Is there anything I need to do prior to the loan transfer?
You are doing it right now! Reviewing these Q&A’s is the best way to prepare yourself for the upcoming loan transfer. To ensure you receive timely information, please be sure your contact information is correct, including your mailing address, email address and phone numbers.
- Should I continue to send payments/paperwork/questions to VSAC prior to the loan transfer?
Yes! VSAC continues to service your defaulted federal loan(s) prior to the transfer. All payments, paperwork and correspondence should be sent to VSAC until March 15, 2024.
- How do I reach Trellis?
Trellis can be reached by phone at (800) 222-6297, Monday through Friday, 8:00 A.M. to 5:00 P.M, Central Standard Time, by email at borrowerservices@trelliscompany.org or via the USPS at PO Box 83100, Round Rock, TX 78683-3100. For more information about Trellis please visit their website trelliscompany.org.
- Will the terms of my loan change?
No. Your loan terms are set according to your promissory note and will not change.
- Does Trellis offer the same federal loan repayment programs as VSAC?
Yes, Trellis offers the same payment arrangement options for defaulted FFEL loans as VSAC.
- Do my automatic payment arrangements or bill pay service payments with VSAC transfer to Trellis?
No. Please cancel any recurring payments currently set up with VSAC or set up through your bill pay service. Then contact Trellis to set up new automatic monthly payment withdrawals from your bank account.
- To whom will I make payments after my defaulted federal loan(s) are transferred to Trellis?
After the loan transfer, you will make payments to Trellis. They will let you know when your payments will be due, and you can begin sending payments to Trellis once you receive this communication.
- How will my defaulted federal loan(s) be reported to the national credit bureaus after loan transfer?
VSAC will delete your defaulted federal loan(s) from your credit report after the loan transfer, and Trellis will begin credit reporting your loan(s) after they are loaded to their system.
- If I have a defaulted Private Education Loan With VSAC, will this be transferred to Trellis?
No. VSAC will continue to service your defaulted Private Education Loan.
- What is a Guarantor?
VSAC, as a state or private nonprofit organization, has an agreement with the Department of Education to administer a loan guarantee program. When your loan was made, you received a notice of guarantee with relevant loan information and evidence that the loan was insured (guaranteed) under the VSAC’s loan guarantee program. Following guidance from the Department of Education, VSAC is transferring the guarantee for your loan(s) to Trellis.