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My Student Loan Xpress Loan is Now With American Education Services But I Need Help. – Jack

“Dear Steve,

I borrowed upwards of $70k (now $95k) from Student Loan Xpress for a higher education degree in 2006. I have the degree, but I’m not making the kind of money required to pay back this (and many other loans). I have been unable to make any payments to this loan… but am on a repayment schedule for all my other loans

My question is this… student loan xpress dissolved, from what I understand, was less than reputable practices. Since then, American Education Services has been ‘servicing’ the loans. When I originally took the loan, I made the agreement to pay back Student Loan Xpress (now gone)…

Am I legally bound to repay a company a didn’t borrow from?

How do I know that they paid for my loan at face value?

Am I responsible for a ‘pennies on the dollar’ deal they may have made?

The collection company I spoke with says my loan is in default, but they have refused to provide debt verification or validation…

Any suggestions?


Dear Jack,

Are these private loans or government subsidized student loans?

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

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About Steve Rhode

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.
  • Jack

    Thank you both for your input.  I’m trying to get an attorney’s guidance, but it seems like there’s little interest.

    I’m trying to find the Master Promissory Note to find my obligation, as I think another option to this mess might be the Statute of Limitations of collecting on this loan.

    Overall, I don’t think AES has any claim to this debt… I’ll update if I get any other info.

    • Lucy

      hi Jack, i know it’s been two years and you might not be on this site anymore. but i was wondering if you found a way to resolve this situation. thank you!

  • AES OG


    The student loans purchased by AES are going to need to be repayed no matter what validation tactic you decide to take.  AES although a loan servicer does own the debt and can continue to collect on it until paid in full.  There may have been a contingency agreement with the prior lender to recieve further compensation once more accounts were collected.  If loan xpress dissolved it was most likely to open a new company to direct funds too and limit the liability of discerning practices.

    For private loans typically they have repayment or get out of default plans.  I have worked with AES in the past and they have internal programs available to those in default.  Typically they require you to make payments of 1% of the balance for 9 months or 270 days.  This coincides with the federal loan repayment plans available and then after the 9 payments they may have other programs to help you.  Get everything in writing and don’t be afraid to ask for the forever plan.  AES has also taken lump sum settlement of 30-40% of the balance cash on the spot but if you don’t have it then you are going to need to take aggressive action towards getting that payment manageable.

    They will want you to document your income and provide some other info for them but they should want to take payments of whatever you can afford.  Also ask them to work with you to remove negative connotations on your credit report regarding the default status if they have placed collection statuses on your credit report.

    Good luck… post how you do i’ll keep an eye out and wait to hear what happened.


  • Jack

    Any thoughts?

    • Steve Rhode

      Sorry, I missed your first comment.

      We can assume that Student Loan Xpress sold or transferred your loan to a new owner. But we have no way of knowing if they did that properly without you asking for verification of the debt and you receiving it.

      It doesn’t matter if they paid for your loan at face value, they bought the entire debt and own an agreement for you to repay the entire debt.

      Not sure what kind of deal they might have made. If they did make an offer it might be an excellent way to resolve this situation.

      Since the collection company is uncooperative and we are potentially talking about a lot of money, I would ask you to consider getting an attorney to represent you and get the validation of the debt. You can find a consumer attorney through

      Here is a good example of the type of debt validation you should be asking for

  • Jack

    Hi Steve,

    Private Loans.. Not government

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