In our labs the credentials are listed on the left when you spin up the environment. Can you elaborate where it is that your are using ec2-user?
Make sure that you check what OS you are using. Some of the AMIs use a different username than ec2-user. If this is an existing instance that you can still log into, try doing a "chmod 700 ~/.ssh"
I downloaded pem file I am using putty ssh. It tries to connect it says connecting and then fails to connect
The instructions for connecting with putty on a windows computer are different. Please take a look at this lesson: https://linuxacademy.com/cp/courses/lesson/course/2748/lesson/8/module/241
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