Key Bankstudent loan

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a verified customer
Verified customer
Review updated:

I applied for a forbearance in February, and was told that it was "being processed, " and "in the computer system, " and "a letter will be sent confirming it but you don't need it."

I never received a letter. Every time I called the company, I was told that they still had an old address for me. I updated my address repeatedly, adn waited for my letter. Finally after six months, I insisted on speaking with a supervisor. They were moving operations overseas during the summer, and it obviously hurt their ability to keep track of their customers.


They claimed I had never contacted them before September of 2008. So I faxed a copy of the form I'd faxed, my fax confirmation sheet (with date and 'ok' status) and my phone records from all the times I tried to update my address. Then they said I couldn't prove that anyone had read the forms faxed, or picked up the phone when I called. I filed a complaint with the executive relations team. After a month, they told me they had "investigated, " (by talking to the same people I'd already talked to) and were refusing to reconsider the default.

They added $4, 000 in fees and collection costs to the body of the loan - it's now 40% more than I borrowed. And by keeping it in default, they gain bankruptcy protections. It's a great deal for them, and it's all because of their own "mistake" in losing my paperwork and records of calls. Shocking that their "investigation" revealed that they cannot reverse the default.


  • Da
    david Nov 26, 2008
    This comment was posted by
    a verified customer
    Verified customer

    I feel your pain... I used up my forbearance... They said I could be eligible for a special forbearance however. They told me I had to list all my expenses, rent, utilities and all. My rent, utilities and my student loans I'm paying the feds on equal to almost 70% of my income each month.
    They also told me that I had to write a letter explaining a plan of action that I would take to ensure proper payment in the future. I felt like a child but I did it. They then told me that it has to be approved by them and sent to basically a "panel" to decide its fate. I waited and waited... soon my next month payment was due and I defaulted even more. I called them and they said it wasn't approved... how frustrating!

    2 Votes
  • Ja
    jay Feb 02, 2009

    I had the same issue with them. They change the terms based on how their day is going.

    I am not worried because they are going to go backrupt soon


    1 Votes
  • Bs
    B. Stein Apr 17, 2009

    I have a lengthy story concerning the studen tloans my daughter has with keybank. I am the co-signer on them. I received a call just befor Christmas of 2008 from a collection agency in Buffalo, New York. They wanted $14, 568.00 to pay off the defaulted loans. I contacted Keybank and argued with them that I had not been contacted about the loans going into default. All I received was the run-around and covering up of their mistakes of communicating with me. I have record of all the phone calls. Names dates and responses. I was supposed to get a copy of the supposedly communications from them in reference to the loans. Never received a thing. I strongly urge anyone not to deal with this banking company as they have extreemly poor customer service and cannot be trusted. If they do end up going bankrupt it would be on account of their own actions. I would not feel in the least bit upset if they do.

    2 Votes
  • Ke
    keybank is wrong Aug 28, 2009

    I have a student loan(medical school loan) with key bank and at the moment, i am desperately looking for a work at the hospital.

    I should get work when residency starts next year june but Key bank refuses to grant me any hardship forbearance extension. Despite the fact that my family makes very little and i have a kid going to school couple of months.

    We can hardly make ends meet but yet key bank is prepared to ruin my credit even after i stated my case to them. I wish Key bank all the best.

    1 Votes
  • Ec
    EconJohn Sep 21, 2010

    Key Bank is the "worst" bank or one of the worst student loan lenders in the marketplace.
    My reason(s) why:
    I received harassing collection calls-5 days past due because my payment was not posted until the follow week because of a holiday. Received calls an astronomical account of calls and every -time I picked up the phone to answer "I was put on hold for 20 minutes" Really? I have student loans from 3 other lenders and Key Bank is the only lender who will never work with me on payment options. I owed $375 dollars and asked to pay 250 and what it would get me...the cs agent told me a cup of coffee. Rudest bank I've ever dealt with, they put their own self interest and what’s best for Key Bank first and the customers last, at whatever expense. My previous employer went of business; I was out of work for 3 months. I wrote 3 hardship letters. One they claim they never received even though I had a faxed conformation. The other they denied because they told me I needed a job to qualify for the hardship program...which is an absolute joke and I guess they miss the point of hardship if you’re not working? I wrote another letter verifying I was employed and sent a certified copy to the headquarters in Cleveland in which Key Bank claim they never received. Oh did you recently change headquarters locations? Asked to speak to a supervisor and got a phantom voice mail 24/7, if she even existed. I faxed, wrote and even email with contemplation of sending smoke signal and never received an answer. After I found a job as an economist they sent me a letter denying my hardship letter 2 months later without any justification. I starved for a month but stroked Key a check for 14K just to rid myself of any affiliation with Key Bank. Most banks are not your friends, they are fee based. Consider Key Bank your enemy! I will never recommend or do business with Key or any organization in connection with Key. At least I have the peace of mind knowing they will not profit from any fees or interest from my loan.

    2 Votes
  • An
    Ann18 Oct 02, 2010

    I feel you. It is a problem everywhere. The thirty years to pay back your student loan doesn't seem to exist. I feel many people are truly hurting with finances during the current recession, the one they say isn't anymore. All companies including bank loans, collection agencies, etc. are looking to gain as much as possible, especially the student loan industry. People get different messages from each department involved. Seems they are on the attack no matter how much people try to work with them to make payments. Written notices are totally different from verbal explanations when you call them. It seems all people can do is take the abuse. There is no ethics in the manner in which they treat people. I caution everyone to understand the written notices are what they will act on not anything BS you recieve over the phone. Remember their goals aren't in your best interest.

    1 Votes
  • Ca
    Carol 24 Aug 20, 2011

    I co-signed a loan for my daughter when ahhe was a freshman in college back in the [protected] school year. Since then she has graduated with her Masters Degree, moved to 2 differenst states to try to find a job. Key Bank can NEVER say that she did nothing to work off her debt. She worked at David's Bridal while trying to find a job in her field as a Social Worker. She has been on the phoned with Key Bank daily and has been faxing them the requested documentation since May 2011 to extend her loan until she finds a better paying job. She found a fulltime job at a daycare but still not in her field. We BOTH have been sending in payments and have still been waiting for an answer. They are killing both of our perfect credit and it's been 4 months and still no answer! Everytime one of us calls, we both get the same answer, "it will be another 3-4 days until you hear something". When I received a default letter in the mail the other day, that was the final straw. I call Key Bank and refused to get off the phone until I spoke to a Supervisor. They tried to get someone to call me back but I refused to get off the phone. I ended up speaking with someone who barely spoke English. His name was Adam Smith. Really? I said, your name is Adam Smith? Anyway, He ended up telling me that she was denied on June 29, 2011!!! Almost 2 months ago! I hit the roof! I never swore so much in my life! They have been calling constantly harassing us, sending us letters, we've been calling almost daily to find out what's taking so long and they've been lying theu their teeth and they've known all along that she was denied! I told him that if I didn't get a call from his supervisor the next day, I will be contacting an attorney because neither one of us was notified and that I will go right to the top of Key Bank because I'm sure that somewhere they violated the contract we signed by not notifying us. This has to be a breach of contract. I'm in the process of seeking out an attorney. Of course they did not contact me the next They are ruining my daughters life before she even gets started!!! Carol from Ohio

    2 Votes
  • Tr
    trinitythis Oct 12, 2011

    Key Bank is driving me crazy. I had 6 loans with them and was told to send a check to them every month for the amount of $900 that was going to be disbursed through out the 6 loans. months later the i found out 5 of the loans went into collections. After getting tons and tons of calls from collections i finally sat down and was curious to where my 900 was going and i kept call key bank but nobody would tell me why. So i decided to be einstein for a day and did the math and realized that my 900 was not being disbursed through by 6 accounts it was jus satisfying one account. Now i have faxed over all the evidence checks and everything and waiting patiently for a call back before creditors come knocking down my door. Please careful of keybank they are snakes!!! I think i just lost years and years of my life because of them. Oh and this is not the first time.

    2 Votes
  • Cs
    csmath30 Jan 09, 2012

    I have a flight student loan that was originally granted by Key bank and later sold to Great lakes. Needless to say, the orignal loan was for 60, 000 of of which 18, 000 was returned. Here is the deal, I only obtained a private license with an intrument rating and now my loan somehow is 80, 000.00. Why? I understand finance charges, but that is about 40% of the loan. In other words, I am paying 512.00 for the next 20 years for a promissed career that never happaned. I really think the government should do something about it. Their predatory practices are a lame game on all Americans.

    2 Votes
  • Dk
    DKF Jan 12, 2012

    A little over 9 years ago we adopted a 13 year old from Los Angeles who became orphaned. When he was 17 we had to send him to a very expensive dual diagnosis residential treatment center in Utah which also functions as a high school. This was an emergency. Because time was of the essence so we could not research quality student loan programs. Now, years later, we are in a perilous economic situation but we haven't missed any payments to Key Bank. They still call us daily to collect money from us. The problem is that Key Bank wants us to remit payment to another organization, a third party, AES, who will then pay Key Bank every month. For reasons nobody understands, the payments never reaches Key Bank. Our bank sends the checks to Key Bank (AES) automatically at the same time every month. In the past Key Bank implored us to change the wording on the checks so AES won't make a mistake. We did that. We followed Key Banks instructions. We also followed AES' instructions. Nothing works. I've done everything they said and more. On Key Bank's behalf I even have called AES to make sure that the money reaches Key Bank. It didn't work. Like clockwork, I keep getting those Key Bank calls every day. In the past, I would tell the Key Bank agent when and where the payment was made and they would be able to collect the money immediately. Lately, they seem to have lost that ability. So now Key Bank is trying to create a situation where I pay a third party then I have to call that third party to tell them to pay Key Bank. Why can't they give me an address where they could collect their money safely?

    For everybody reading this, Key Bank has an automated phone department; meaning that every call they make is recorded. To start the conversation, they take about three minutes of my life every day just to tell me about the phone recording and to establish that I am the payor on the account. This is all harassment. After being harassed by Key Bank for over two years, I finally decided to record their calls too. I told them that I am recording their phone calls when they told me they are recording mine. Their policy is not to allow you to record the phone calls so they are forced to hang up. Before they hang up I usually tell them that I will not record the call if they don't record the call. They won't agree to mutual fairness. Every time I mention that I am recording the call to Key Bank they tell me they will hang up on me unless I stop recording them. A few Key Bank agents have asked me, "Why are you recording this phone call? This is just a business call." I stick to my guns and they hang up. I usually ask to talk to a manager who won't record my conversation or who would allow me to record my calls with them. The managers will not talk to me and the battle continues until I call them on my initiative and give them all the information on my check, when it was sent, when it was paid, etc.

    Key Bank has stolen weeks of my life because they made a poor arrangement with one of their vendors. I own a business and I have never asked one of our clients to call one of our vendors on my behalf and I never have heard any corporation that ever made that type of request before. There are no words to describe how it feels to face their type of constant drone of harassment. Despite my requests not to do so they call me on Saturdays and Sundays. They call me at dinnertime or later. They don't communicate with fellow case workers. They don't keep detailed phone records of the previous phone, just brief descriptions. I don't know why they record the phone calls if they don't utilize that information. Key Bank doesn't give you a case number when they call. They also don't assign you to one case worker. Each one is unfamiliar with the account. They are a creepy institution. Key Bank should not be a bank. I want Key Bank to stop harassing me and I am now asking questions to a few law firms who may be able to help me.

    2 Votes
  • At
    AtALossOfWords Jun 10, 2013

    Key Bank is one of the most, if not THE most corrupt student loan lender in the United States. If I would of known what I have come to realize now... I would of never signed for a student loan with them, when I was 18 years old in 2004. I currently owe approximately $70K, and have been experiencing nearly all of the same problems as listed above. I was told roughly 2 months ago, by a representative named "John Smith", that I had been approved for a defferment to last 6 months. Now, my father and my co-signer, has recieved a letter from Key Bank DEMANDING PAYMENT IN FULL. What the heck!?!? I had signed, faxed, & kept the confirmation number when both my father & myself signed the paperwork for the defferment. I even called to double check that KeyBank had recieved my fax, and was told that YES it was recieved...and about two weeks later was notified that I was "approved" for the Defferment. Now, I am recieving roughly 6 or more phone calls a day from Key Bank, threatening and harrassing that I must pay the 70, 000 in FULL. I never am able to speak to anyone in the United States as all calls made are redirected to India. When I request to speak to someone in the states, I am told that a phone call will be returned to me within 3 days...Well, KeyBank, I am still waiting! I have been lied, decieved, harrassed, threatened, and treated like complete and utter [censored] by KeyBank. My father & my credit has taken a turn for the worse due to KeyBank and the lies they have told us. Everytime I try and call KeyBank I am given the run around, and basically told that there is NOTHING they can do. All they care about is----> MONEY. They will lie to you, in order to recieve financial gain. I am so upset over this whole situation, and the finacial hit that KeyBank has caused my father & I, that I regret EVER going to College! I do not know what to do now except find an attorney.

    1 Votes
  • Te
    TellLikeItIs Jul 10, 2013

    Key Bank is everything terrible the previous posts indicate. I got a $15, 000 mNon-Educational Key Bank Private loan in 2006 just before I graduated from medical school. They told me I could get the loan to use to pay moving expenses, etc associated with graduating from school. THEY KNEW IT WAS NOT A STUDENT LOAN according to the IRS definition of qualified student loan. 4 years later my husband dies of brain cancer and I end up having to file bankruptcy. The loan was supposed to have discharged in the bankruptcy. 3 years later my credit is supposed to be recovering from bankruptcy and I try to get a car loan. I am showed a copy of my credit report that has several collection agency names all reporting a loan a $21, 000 unpaid loan in collections. I call one of the companies and they tell me it was originally a loan from KeyBank for $15, 000. They say it was not DCd in the bankruptcy because student loans cannot be dismissed by bankruptcy. I tell them it was not student loan but a private loan I got while in school. They contradict me but refuse to send me anything showing what they are saying and refer me to call key bank. I leave messages repeatedly but never get return calls. I file a dispute with credit bureau. I find out that the minute the bankruptcy was discharged, they charged off the loan but are now saying it was not the type of loan that can be charged off and want payment in full. Credit bureau takes two months to settle dispute and they remove the repeated reports from collection companies but send me a message to call key bank. I call numerous times during mid-morning to afternoon on a couple different week-days. Recording always says they are closed and to call back during business hours...huh??? When I called I blocked my cell phone number. I finally reach somebody named Michael. Somehow they got my cell number thru caller ID anyway. Michael was the rudest person I have ever talked to. He yelled at me, threatened to hang up when I didn't listen to his insults. Called me a liar when I told him I didn't have a job. Told me to ask my family for money. Told me to ask my previous employer for money to pay the loan. Refused to send me a copy of my original loan contract or ANY paperwork that would show this was a loan that qualified as student loan and was not DCd in the bankruptcy. Told me it was not included in the bankruptcy but then Yelled at me to call my bankruptcy attorney if I had any questions about the loan which was supposedly not included in the bankruptcy???? Finally said he would send me a copy of the contract but it would probably take about 3 weeks and I "better figure out how to pay it in the mean-time because when you get the contract the whole loan is due and payable in full immediately." I told him that is what all the letters have been saying and I am just trying to resolve this and that is why I have been calling. He yells at me "don't act like you are doing us a favor calling, this is your debt not ours." He again starts repeatedly threatening to hang up on me if I don't listen to all his verbal abuse. He says that my previous employer told them within last 2 wks that I got a new government job and he will put a stop to that due to non-payment of school loan debt if I don't find a way to cough up the money by the end of the month. (It is now the 10th of July.) Told me he will see to it my credit is so bad I never get another loan from anyone.
    This place is unbelievable. He has now told me my acct mgr in future will be Larry Thomas. All these names sound made up. I can see why they are no longer making student loans from this bank, but seriously, the govt should step in to help those that already were taken in by this pit of vipers.

    1 Votes
  • Re
    rebeccacj Dec 03, 2014

    I am late on my payments but I am almost caught up. They are calling my work, sending letters to an address I have not lived at for over 10 years, calling my house over 30 times a day. This is uncalled for. Someone needs to do something with them.

    1 Votes
  • No
    Not Happy with KeyBank Aug 20, 2018
    This comment was posted by
    a verified customer
    Verified customer

    Key Bank denied assisting me during medical leave from work. I am not receiving any income and we are struggling. Their answer? Get financial relief from a debt consolidation company. Advice to everyone: DO NOT DO BUSINESS WITH THIS BANK EVER. RUN AS FAST AS YOU CAN IF EVER OFFERED A LOAN FROM THIS COMPANY.

    0 Votes

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