KeyBank Student Loans Review: Pros and Cons

KeyBank is a traditional U.S. bank that provides student loan services through Key Student Loan Solutions, including free student loan consultations, private student loan refinancing, and new loans through partner lenders.

In this review, we’ll cover its key features to help you decide if KeyBank is worth considering for your student loan financing.  

What Is KeyBank?

KeyBank is a regional bank headquartered in Cleveland, Ohio. It offers a wide range of personal and commercial banking services, including lending, investing, wealth management, and student loans. The bank’s origins date back to 1825, through the Commercial Bank of Albany in New York.

The modern KeyBank was formed in 1994 through the merger of Society Corporation and KeyCorp. Its parent company, KeyCorp, oversees approximately $189 billion in assets. 

What Does It Offer?

KeyBank’s student loan services fall into three main categories: personalized guidance, refinancing, and new private student loans. 

Student Loan Consultation

KeyBank offers a free, 30-minute consultation with a student loan specialist who can review your current situation and help you understand your options. Depending on your situation, that may include federal repayment or forgiveness programs, private refinancing, or new borrowing.

The student loan specialist can also compare your existing loans against current refinancing offers. The consultation itself doesn’t change or combine your loans, but it helps you decide which path is best for you. 

Student Loan Refinance

Eligible borrowers can refinance their existing federal and private student loans into a new private loan through KeyBank. This may help you lower your interest rate, reduce your monthly payment, shorten your repayment period, or combine several loans into one single payment.

KeyBank offers refinance terms of up to 20 years as well as fixed and variable rates with available Autopay discounts.

KeyBank allows you to see your rates upfront within minutes with a soft credit check, which usually doesn’t affect your credit score. However, if you decide to proceed, you will be required to submit a full application, agree to a hard credit check, and provide any necessary supporting documentation.

Student loan refinancing at KeyBank is really geared towards high income professionals.

KeyBank acquired Laurel Road and now offers student loan refinance directly under the KeyBank name. 

New Student Loans

KeyBank can also help students and parents compare new student loan options for future education costs. This includes reviewing the cost of attendance, federal financial aid, scholarships, grants, personal contributions, and any funding gaps.

I should point out that KeyBank itself isn’t lending the money for new private loans. It helps you compare options from multiple private lenders, and it has a formal partnership with Sallie Mae, which offers loans for undergraduate, graduate, professional, and career-training programs.

Of course, before you consider any private student loan option, always maximize scholarships, grants, work-study, and federal loans, which have more repayment flexibility and other borrower protections. 

Are There Any Fees?

KeyBank doesn’t charge application or origination fees on its refinance loans, and there is no penalty for paying off your loan early. And, as mentioned, the student loan consultation itself is also free. 

However, you may be charged late fees if you don’t make your payments in time. Also, fees for new student loans will vary by provider, though Sallie Mae loans promoted through KeyBank don’t charge origination fees or prepayment penalties.

How Do KeyBank Student Loans Compare?

KeyBank stands out for its combination of consultation and guidance with private refinancing. You can meet with a specialist (for free) who can help you compare your options, not just to submit a loan application. 

That said, it always makes sense to compare loan options and lenders, and there are several other providers worth considering. SoFi, for example, directly offers both student loan refinancing and new private student loans, charges no required fees, and provides additional member benefits. If you’re comfortable comparing and applying for loans entirely online, it may be a great option. 

Abe Student Loans is another alternative if you’re looking for new undergraduate, graduate, or parent loans. Like SoFi, it doesn’t charge fees and offers grace periods of up to 12 months, as well as a unique in-school default protection program.   

For additional alternatives, check out our list of the Best Private Student Loan lenders here. 

How Do I Open An Account?

To initiate a free consultation, head to the KeyBank Student Loans website and submit an online form. You will be required to submit your loan information upfront to schedule an appointment. According to KeyBank, “be prepared to upload your My Aid Data File, plus any private loan data you wish to share.” 

Is It Safe And Secure?

Yes. KeyBank is a longstanding and well-established U.S. financial institution and FDIC member, though student loans are not covered by the FDIC, just eligible banking deposits. KeyBank also uses a secure online portal to protect your personal information. 

How Do I Contact KeyBank?

If you have a question about student loans, you can reach out to KeyBank by email at studentloans@key.com. For help with a student loan application, call 1 (855) 245-0989. 

If you already have a refinanced KeyBank student loan and need help with billing or payments, contact MOHELA at 1 (877) 292-6845. For all other loans, call KeyBank at 1 (866) 425-3449.

Is It Worth It?

I think KeyBank Student Loans is worth considering if you just want to sit down and discuss your options with a specialist who understands the trade-offs between federal vs. private loans, as well as loan forgiveness and repayment programs. It’s a free consultation, so you really have nothing to lose, and it won’t impact your credit score. 

When it comes to refinancing, KeyBank is competitive with other lenders, but not an obvious market leader. However, it’s quite comparable to SoFi when it comes to fees, rates, repayment terms,etc.

Perhaps the biggest drawback is that KeyBank isn’t the actual lender for the new student loan options featured on its website. For that reason, you’ll probably want to compare rates and features with other private lenders, including direct lenders, who may offer lower rates and more flexible terms. 

Check out KeyBank here >>