Consumer complaint received 2025-10-23 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: KEYCORP
State: OH

Complaint narrative:
XX/XX/year> - I noticed that the current balance of my loan, the current repayment amount, and the current repayment term would result in a remaining balance at end of the current repayment term. I called the loan servicer, XXXX XXXX for clarification. They escalated to a manager who confirmed the discrepancy and indicated they would initiate an inquiry internally and reach out to the lender, KeyBank. 
XXXX - I exchanged multiple emails and phone calls with XXXX XXXX seeking resolution. I was able to speak with a manager on occasion and was told to continue to allow for processing time. They indicated that this was a problem on the lender 's side of things. There is no contact information for anyone at KeyBank as they no longer originate loans, and I was not able to discern the person ( s ) at KeyBank with whom XXXX XXXX was communicating even after multiple times of asking XXXX representatives. I was eventually sent what appeared to be a mock up of a new repayment schedule but was unable to confirm it's accuracy as XXXX provided no context or follow up ( and the document had information about another borrower included ). 
XXXX - I received email notification from XXXX XXXX that the lender 's resolution was not to hold the loan to the agreed term limit. KeyBank would keep the loans at the current monthly payment amounts until the loans are paid in full, even if this is a longer period than the original loan term. This resolution would result in extending the repayment period by just over 3 years if I continued the current monthly payment or in an increase of over {$300.00} per month to pay in full at the end the current repayment period. I asked for additional clarification, in writing, why reamortization was never completed on a quarterly basis, which is what I was told should have been the case, starting at least when interest rates began to increase approximately 4 years ago. Had KeyBank been providing me this information regularly, I could have increased my payment amount, adjusted future financial plans when repayment would conclude, or sought refinancing with another company. In any of these options, I would have likely saved $ XXXX over the remaining life of the loan. I also asked for clarification, in writing, that the proposed new repayment period was consistent with original terms of the loan. I was told by XXXX, reporting what they were told by KeyBank, that it is not an extension of the repayment period per the original terms of the loan but KeyBank making a concession to allow me to continue to pay monthly after the current loan term rather than being responsible for a balloon payment at the end of the current term. 

I understand that I am responsible for repayment. That has never been in question. I do not understand, however, why the loan was not reamortized properly. I also do not know what recourse I have at this point other than to refinance with another company. This will recoup some of the loss but having continued payments at the minimum repayment amount in ignorance for nearly 4 years after interest rates increased has resulted in the loss of significant financial resources. As stated above, this loss was potentially avoidable had I been informed of any changes on a timely and regular basis over the past 4 years. 

Representatives and managers at XXXX have always been friendly and professional and I believe have shared with me everything they know. From what I've been told, the lender, KeyBank, is responsible for reamortization so I hold them primarily accountable for this lapse. I believe that KeyBank is in breach of contract from the original terms of the loan and am filing this complaint against them.

Company response to consumer: Closed with monetary relief