topic Re: KeyBank Private Education Loan Charge-Offs in Student Loans

KeyBank Private Education Loan Charge-Offs

MBOhio — Mon, 07 Jun 2010 17:06:21 GMT

I have a series of private student loans (total of about 20 due to each disbursement being treated as separate loan) with KeyBank, mostly from graduate school. Due to a period of unemployment last year, 11 of them charged off. The charged-off loans toal about $104K.

Since that time, I have obtained a great-paying, steady, full-time job. Key has informed me that these loans will continue to be reported as charged-off until they are paid in full, regardless of whether or not I am paying on them. For the record, I am in payment plans for all 11 of them, actually paying more per month that I would have under the original repayment terms. However, since the loans total $104K, it will take me years to pay them in full. I have pleaded with them to reverse the charge-off, agree to a repayment plan that rehabilitates the loans to a more positive status, etc and they have refused everything, stating flatly that the loans will be reported as charged off until they are paid in full, regardless of my paying a monthly amount to them.

I am also trying to buy a home in th enext 9 months. Based on my research, it is nealry impossible to get a home loan, even an FHA, will a score of less than 600, more likely 620. In addition, I have been told my credit will never reach 620 with 11 charge-offs on it.

My questions:

1) Has anyone else had a similar experience with KeyBank? Does anyone have any advice on how to create a more positive credit report situation out of the charge-offs?

2) How impossible does it seem that I would be able to obtain a score of 600 or 620 in the next 9-12 months with 11 charge-offs on my credit report? The rest of my credit history is fairly positive (just a few 30 days from last year) and my utilization ratios will be under 35% in the next few months.

Thanks!

Re: KeyBank Private Education Loan Charge-Offs

hodap2001 — Fri, 18 Jun 2010 12:06:30 GMT

I hate to break it to you, but your pretty much out of luck and Keybank does have the right to report the loans as charge-off since you failed your earlier repayment obligation to them; however, since now, you are making payments, they are not required by any regulations to go back and change the tradeline remark, because you did not fully go through with the earlier repayment obligation.

I am happy for you that you obtained a great job, with a good salary and are now in a position to pay back the student loan. Good job!

Keyback is right in this situation though.

Re: KeyBank Private Education Loan Charge-Offs

clemente21 — Fri, 18 Jun 2010 14:42:05 GMT

I'm in a similar situation as you, however I have been making payments every month to CA. I've been sending them $333 to cover two student loans that are roughly $5,500 a piece. I noticed KeyBank is reporting the drop in balance on ONE of the loans but not the other. Each month though KeyBank reports a KD instead of OK in my payment history. I'm sending this money as good faith payments as I am waiting to hear if the CA will accept my payment plan offer. Obviously the CA wants a nice size down payment first, which I really can't come up with right now.

I'm a little confused with this also. Should I go to KeyBank directly and request a payment plan? Is there any way that I can get KeyBank to not report a KD on my CR? Any help woul dbe greatly appreciated.

Re: KeyBank Private Education Loan Charge-Offs

jackistrong — Fri, 19 Aug 2011 04:01:14 GMT

I know how you feel. I have 2 from them, and I was never even informed of the charge off until I pulled my credit report last month to apply for a prequalification on a mortgage. I found that there are now 2 chargeoffs on mine and my husbands credit reports. We are sitting at a 634 and a 624 for credit scores. They started calling me in 2010 and I had arranged to pay $50 a month ($25 on each loan). Then the following month they called and wanted $100, and then 2 weeks later they wanted $200 a month, and I told them that there was no way I could afford that at all. My husband's business had went into the toilet and was down 3/4 of its normal yearly sales, which meant our pay was down by 3/4. I am so very pissed at Keybank as they were sending me statements and then after I told them I could not afford $200 a month they stopped sending me statements and that was it.

Re: KeyBank Private Education Loan Charge-Offs

jackistrong — Fri, 19 Aug 2011 04:02:40 GMT

I honestly feel they are doing this illegally. I think they need to be sued. It is not fair at all how they handling these situations.

Re: KeyBank Private Education Loan Charge-Offs

jackistrong — Fri, 19 Aug 2011 04:04:41 GMT

I do not agree with you, they never ever informed me of anything. They started sending me statements and kept increasing my minimum every single month and when I told them I could not afford $200 a month on my balances they stopped sending me statements all together and charged off my accounts.

Re: KeyBank Private Education Loan Charge-Offs

quicksilver185 — Sun, 09 Oct 2011 01:35:52 GMT

I feel everyones pain I have a 11k student loan with Key Bank never recieved a phone all, statement, e-mail or anything from them. I just found out it was charged off about six months ago and I have no idea where to begin. It is showing as bad debt charge off, I have no collection accounts. Is it even worth trying to deal with Key Bank unless I can PIF/PFD? I dont think I want to stir things up unless I can make good on the debt 100%.

Re: KeyBank Private Education Loan Charge-Offs

jackistrong — Sun, 09 Oct 2011 02:57:46 GMT

Here is what we did..I called Keybank..and after being transferred to at least 5 different departments, they got me to the collection person. I have 2 charged off, however only 1 is on my husband's credit score, so we took care of the one on both of ours. It was at $4450 and we were able to pay $2800 to get it taken off..

NOW THIS IS THE PART THAT SUCKS!

AFTER PAYING THE $2800, which was not easy to come up with to start, they were suppose to send it to the credit bureaus as being settled in full. THE MORONS AT KEYBANK sent it through as partial payment. Then they re-coded it and added 19 months of late payments to my credit score. Dropping my score from a hopeful 634 down to a 596. I have contacted them and they said they again have to re-code it. I have submitted disputes through the agencies and am hoping it will be fixed. But we did save $1650 by settling the item, now if it ever gets straightened out, that will be the miracle and will decide if I pay the other one..

Re: KeyBank Private Education Loan Charge-Offs

paragank — Wed, 02 Nov 2011 17:58:37 GMT

I have had a loan that was charged off while I was still enrolled in school. I applied to have this loan deferred with AES (American Education Services) but I was outside of the country and my fax of enrollment information did not go through. I found this out months later though, the entire time I assumed that my loan was in deferment while it was actually charged off.

Come one year later and 5 months of trying to have this charge off reversed with Key Bank they are not budging. I have even had one of their customer service agents hang up the phone on me today. I have several other student loans and none of them have problems like this.

I am not sure what to do as I don't have the $3820 the collection agency is asking for a settlement offer and I will not be able to continue my education if I can't get loans coming up soon. It seems that Key Bank would be sympathetic to one of their customer's and in my situation as it is simply an errorr. I have contacted AES, who states they have the information that I requested a deferment and I have even had my school mail them letters.

I'm considering using a credit repair agency to get some help but I think many of these companies are shady.

Any advice on what I can do?

Re: KeyBank Private Education Loan Charge-Offs

jackistrong — Wed, 02 Nov 2011 20:31:47 GMT

Try this number. Then ask for collections and see what they can do. They will take a settlement or should be able to start making payments again. If you are not able to make any payments, then no, they will not help you in anyway.

Re: KeyBank Private Education Loan Charge-Offs

rur2 — Tue, 21 Feb 2012 05:18:33 GMT

I think it is criminal what Key Bank has done to us. They have charged off loans in excess of $75000, which cannot and will not be paid in full for at least another 10 years or so. So in the meantime how am I to buy a home or even a car with a credit score that says I am "irresponsible with dept" As far as I understand it, it will take 7 years after the charged off accounts have been paid in full, for my credit to return to what is deemed responsible. If anyone has any answers on how to fix this injustice let me know please.

Re: KeyBank Private Education Loan Charge-Offs

aktindall — Mon, 12 Mar 2012 18:50:19 GMT

I am having the same issue!! I just got a call from a collection agency telling me that my 10K loan amount is due in full by the end of the month. I NEVER received any notices/bills from Key Bank. My dad co-signed on the loan and he never received anything either. How can they DEMAND I pay the total amount in full when this is the first time I have even heard from them.

I tried calling Key Bank directly and they wouldn't give me any information and said I will be contacted by the collection agency. Can they do that? My husband and I have 8 student loans between the 2 of us and pay $1100 a month for those, and have never missed a payment. I dont understand why they wont work with me. I am 100%responsible for the amount, I know that, but for them to not even work with me on a payment plan is absolutely unreal. Especially when this is the first time I'm hearing about the amount even being due.

Has anyone had any luck with getting through to Key Bank or working out a debt through collections?

Re: KeyBank Private Education Loan Charge-Offs

mverg001 — Thu, 08 Nov 2012 23:02:07 GMT

I am fairly new to this so I hope someone replies to me...

i also got my loan charged off with NO notification until i checked on of my credit cards...they won't reverse it..

i said that i sent an in school deferrment to all my loans and i am almost certain that i sent it to keybank as well. Now, i am at a total loss...im only 24...going on a 2nd bachelors...and i have no help from keybank...so i've been doing online research as to what to do...keep paying off the charges...but how do i talk to these people?? they're jerks!!

any help would be appreciated

Re: KeyBank Private Education Loan Charge-Offs

ler12012 — Fri, 09 Nov 2012 15:22:45 GMT

I have 6 private education loans through Key Bank. What a nightmare. I went through the whole deferment process when I lost my job a few years ago, telling me that I was approved and that I'd be getting paperwork in the mail in 30-60 days. After 60 days, and nothing.. My father (cosigner) receives notice that all 6 accounts have been charged off. This really was devastating to my family. They never called me, mailed me, nothing. Just demanded $50k in full from my father. This caused a huge divide in our relationship and ruined my credit. They have been a nightmare to deal with, I have been in repayment since, paying $200 a month for now. They won't be removed for years. They certainly partake in shady business practices to get these off their books. I feel your pain!

Re: KeyBank Private Education Loan Charge-Offs

Relheok — Wed, 06 Feb 2013 15:38:26 GMT

I am having the same problems. I know this thread is old but it still applies. I owe two loans to Key, 12K and 13K and they charged off my accounts without notice when I was in deferment for my federal loans. My federal loans are still active but these guys are horrible, horrible!

Re: KeyBank Private Education Loan Charge-Offs

mccarthy29 — Thu, 14 Feb 2013 00:12:01 GMT

wow! I just learned that I have 7 charged off loans with Key Bank. They haven't contacted me in 3 years, no phone calls, emails or letters. There answer was that they couldn't do anything unless I paid $350 a month. Well I work part time as a school counselor, not a money making job. I told the lady, who was very rude, that $350 is basically half my salary and I won't be able to eat. They have never even tried to contact me. They even said that they had called me 1/27/10 to tell me, when in reality I called them to put my loans in deferrement while I was in S. Korea to make money teaching English. I had updated my address and number to my mom's house so I would be able to know if anything happened. They decided not to update my info and now blames me that I didn't update my info. This is a racket and it needs to stop, there has to be something we all can do.

Re: KeyBank Private Education Loan Charge-Offs

SCF — Thu, 14 Feb 2013 06:16:56 GMT

Are these federal student loans? Are they currently in default?

Per the terms of the rehab program, if they are, the collection agency has to work with you so that you can make 9 reasonable payments to rehabilitate the loans and get them out of default. Call the collection agency back and explain that you cannot pay what they asked. I've read here that people have had success with asking them to send a worksheet where you can detail your income and monthly expenses, then you can both use that as a starting point in determining a payment amount. If they really won't budge, it might be time to contact the Student Loan Ombudsman and ask for their assistance. That said, the experience around here seems to be that with a little firm pressure, the CA will adjust the payments to a reasonable amount.

Going forward, it will be very important for you to be proactive about knowing your loan status, and ensuring that your lender always has your up-to-date contact information, because as you've learned, mistakes happen and the borrower often suffers the consequences. I'd reccomend making an account on the lender's website and checking it at least once per month to make sure your payment has posted, and that everything else seems correct.