KeyBank Private Education Loan Charge-Offs

[Anonymous]

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!

[hodap2001]

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.

[clemente21]

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.

[Anonymous]

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.

[Anonymous]

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.

[Anonymous]

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. 

[quicksilver185]

 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%.

[Anonymous]

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..

[Anonymous]

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?

[Anonymous]

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.