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I Would Like to Try and Consolidate My AES Private Student Loans. – Tara

“Dear Steve,

I graduated college in 2008 with a total of $107,000 in private student loans through AES, 1 loan for each year of college totaling 4 loans in total. Now I am having a lot of trouble paying my monthly installments and I have already used up every drop of forbearance, deferment, or payment program that AES offers.

I would like to try and consolidate the loans but because they are private and my credit is so bad due to not being able to pay very much on the student loans right now, I can’t get any lender to help me. My cosigner for the loans just filed bankruptcy and can’t help me. As it stands my monthly payment amount for the 4 loans is more than I even bring home each month!!

What options do I have for trying to consolidate my private student loans if I have HORRIBLE credit, and is there any way I can apply for grants or other free money for college after I graduated that I can use to pay off some of the private loan debt?



Dear Tara,

Private student loans suck!

There are few, if any options available. Private student loans do not offer any of the government backed student loan payment reduction options.

The best I’ve seen people do is find a new lender to generate a new loan at better terms. Unfortunately based on what you shared that’s going to be tough.

Please post your responses and follow-up messages to me on this in the comments section below.


You are not alone. I'm here to help. There is no need to suffer in silence. We can get through this. Tomorrow can be better than today. Don't give up.

About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.


  • Hey Tara,  I am in the same boat and even graduated the same year.  My AES loans sum to about $110,000 and I have 7 separate loans.  I am not sure what your interest rates are but mine are between 4% and 8% and my minimum payment per month is $507 for those loans.  I just posted this on another post, but there are a few places still consolidating private student loans (… 
    I’m working on an application for CUStudent loans.), but typically only up to $100,000.  It sounds like it might be hard, but try to find someone who is able to cosign for you.  The best interest rate I have seen is 4.75% with the average around 8%.  Consolidating will definitely bring down your payment and hopefully give you a better interest rate too. 

    Good luck, i’m sorry I don’t have any better advice.


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