KeyBank Student Loan FAQs
Key Student Loan Consultation
For borrowers with federal student loans, or a combination of federal and private loans, our student loan experts can help you weigh your options. During your consultation, a specialist will break down your student loan profile, provide a chart on what your new loan payoff could look like, answer questions about what terms are the best for your unique situation, and answer any application questions you may have. If student loan refinancing is determined to be your best option, they can help you understand what information impacts the interest rate that you might expect to be offered on your loan refinancing. Items such as your FICO score, income level, student loan balance, and current interest rate structure can impact your offer, and your specialist can walk you through how to qualify for the lowest rates on your loans.
If you’re looking to review your financial cost for education of a current or upcoming program, our specialists will provide a funding report that will show options with federal loans, private loans, out-of-pocket costs, and if there is a funding gap.
Our student loan consultation is designed to help you explore your federal and private student loan repayment options. After you request a consultation, you'll receive an email with a link to our secure online portal where you'll be asked to provide several items to build out your profile so that your consultant can give you the most accurate assessment based on your unique situation. This information will include:
- Types of loans that you currently hold (federal, private, direct, subsidized, unsubsidized, etc.)
- If you have any federal loans, you will be asked to provide the My Aid Data file, which you can obtain via your studentaid.gov account
- The balance and interest rate for each of your loans
- Current payment schedule
- Authorization to conduct a soft credit pull, which will not impact your credit score
If you’re looking to discuss funding current or upcoming education, this information will be useful:
- Whether you’re looking to discuss your own funding needs or for a dependent
- Any scholarships, grants, or other forms of funding you expect to receive
Once your profile is complete, you will be able to schedule your free student loan consultation.
Student Loan Repayment & Forgiveness
Income-Driven Repayment (IDR) was introduced to provide federal student loan borrowers with options other than forbearance to help make monthly payments more manageable. All IDR plans adjust federal borrower’s payments based on their adjusted gross income and family size — not how much they owe. Those pursuing Public Service Loan Forgiveness (PSLF) are typically enrolled in an IDR plan. New IDR plan options will take effect starting on July 1, 2026.
For more information, go to the IDR page on the Federal Student Aid website.
Public Service Loan Forgiveness (PSLF) is a U.S. government program that allows qualifying borrowers employed at nonprofits and government entities to have their Federal Direct Loans forgiven after 10 years of qualifying repayment (120 payments total), usually under an Income-Driven Repayment (IDR) plan. To be eligible for the program, you must:
- Be employed by a qualifying nonprofit OR a U.S. government organization at any level (federal, state, local, or tribal) — including U.S. military service
- Work full-time for that agency or organization
- Have Federal Direct Loans (or consolidate other federal student loans into a Direct Loan)
- Be enrolled in a qualifying repayment plan
- Make 120 qualifying payments
For more information, go to the PSLF page on the Federal Student Aid website.
Key Student Loan Refinance
For help with student loan questions, you can email us at studentloans@key.com. For direct help with student loan applications, call us at 1-855-245-0989, or for general inquiries call 1-800-KEY2YOU® (529-2968). Clients using a TTY/TRS device, please dial 711.
Yes, as a current KeyBank client you may be eligible to refinance your loan(s) again. If you currently have a student loan with KeyBank and choose to refinance your student loan again with us, a new application, including consent to a new hard credit inquiry, will also be required. The rates and loan terms offered are dependent on current market rates and the applicant’s current financial standings, including but not limited to income, credit score, and debt-to-income ratio. If approved, the previous KeyBank student loan balance will be paid off with a new KeyBank loan.
KeyBank refinances student loans for working professionals with four-year undergraduate and/or graduate degrees from Title IV accredited institutions, as well as for professionals who have an associate degree* in designated professions. Graduate students and undergraduates can refinance student loans as early as their final semester of school, so long as they have a signed contract or letter of employment. We also refinance student loans for parents who took out debt to finance their child’s education. To be eligible for the Parent Student Loan Refinancing Program, the child must have attended a Title IV School but does not need to have graduated. Loan eligibility depends on lending criteria, such as your credit profile, monthly income, and monthly debt payments.
*Additional eligibility requirements for associate degree applicants:
The applicant must have been employed for a minimum of 12 months in the same field of study of the associate degree. Also, the applicant must either (1) be currently enrolled in and in the final term of the associate degree program at a Title IV eligible school or (2) have graduated from a school that is Title IV eligible with an associate degree in the following eligible programs:
- Cardiovascular Technologist (CVT)
- Dental Hygiene
- Diagnostic Medical Sonography
- EMT/Paramedics
- Nuclear Technician
- Nursing
- Occupational Therapy Assistant
- Pharmacy Technician
- Physical Therapy Assistant
- Radiation Therapy
- Radiologic/MRI Technologist
- Respiratory Therapy
- Surgical Technologist
- Associate Degree of Applied Science (AAS) in any of the above fields
KeyBank will refinance up to $50,000* for associate degree loans in the eligible healthcare field. Please see full eligibility requirements here.
*Parents who are borrowing on behalf of their children are not subject to the $50,000 loan max.
If you refinanced your student loans with Laurel Road at any time, there are no changes to your account number, loan terms, payment amount or due date of your loan. Servicing will continue to be handled by MOHELA, our student loan servicing partner. You can continue to contact KeyBank at 1-800-KEY2YOU (529-2968) with any questions regarding your loan (clients using a TTY/TRS device, please dial 711) or can contact MOHELA about statements and billing at (877) 292-6845 (customers using a TTY/TRS device, please dial 711).
Yes, KeyBank refinances both federal and private student loans, even if you have already refinanced or consolidated your student loans with another lender.
Student loans refinanced with KeyBank will continue be serviced by MOHELA, our student loan servicing partner. If you have any questions about your student loan payments after funding your loan with KeyBank, please call MOHELA at (877) 292-6845. Clients using a TTY/TRS device, please dial 711.
Checking your rate for Key Student Loan Refinance only requires a soft credit pull, which will not affect your credit score. To proceed with an application, a hard credit pull will be required, which may affect your credit score.
To complete a student loan refinance application, you will need to provide proof of graduation, current proof of income, and any applicable payoff statements. If you intend to have a co-signer for refinancing, the co-signer may need to provide proof of income.
You may not need a cosigner, but if you do not meet our credit criteria, a cosigner may improve your chances of being approved.
New Student Loans
Once the college and program are determined by the student, the first step is to see what the total cost of attendance will be and if the student is eligible for any financial aid. Taking the overall cost for the college program and deducting any financial aid and personal sources of funding, we arrive at the total cost that the student will have to cover with federal and private student loans.
Federal student loans are issued by the government once the Free Application for Federal Student Aid (FAFSA) is submitted and processed. Federal student loans have fixed interest rates that the government decides on an annual basis, various repayment options, various postponement of payments options, and forgiveness and discharge options. Federal student loans have origination fees and limitations on borrowing limits.
Private student loans are not associated with the government and instead are associated with a bank or private company. There is typically a higher borrowing limit with private student loans compared to federal, where the student could obtain private student loans for almost their entire educational journey. Private student loans require a credit check when acquiring a student loan, and interest rates can be fixed or variable with different repayment term options. The loan could be disbursed faster compared to federal loans. Private student loans may require a cosigner to help the student obtain private student loans.
While in some instances private loans may provide more competitive rates and flexible terms and repayment options, borrowers will not have access to the repayment or forgiveness programs that may be available for federal student loans. For more information about federal student loan options, visit studentaid.gov.
Private student loans cannot be consolidated or refinanced into federal student loans, whereas federal loans can be refinanced into a private student loan. Private student loans can be refinanced into a new private student loan, which is subject to eligibility guidelines that are determined by the lender. The lender will decide whether the student will have options for postponing their payments or the ability to lower their monthly payment.
Students and parents should review all options prior to taking out private or federal student loans.
Students who are just starting out and do not have a long credit history or a consistent income yet may need a cosigner due to their credit profile not meeting the minimum requirements for the lender. Students who are continuing their higher education and have a long credit history and established income might not need a cosigner.
A cosigner is reviewed on a case-by-case basis for the student when determining their eligibility for private student loans.
New Student Loan Legislation Updates
- The One Big Beautiful Bill Act will create a new Income-Driven Repayment Plan and adjust the current Standard Repayment Plan, which will impact repayment options for borrowers and Parent PLUS borrowers with any loans disbursed after July 1, 2026. This will also end some of the current IDR plans: SAVE, PAYE, and ICR.
- After July 1, 2026, new borrowers and new Parent PLUS borrowers will be subject to the new federal student loan limitations.
- After July 1, 2027, borrowers and Parent PLUS borrowers who cannot afford to make their federal student loan payments will be limited on forbearance length and frequency. Some deferment options will no longer be an option.
- After July 1, 2027, federal student loans in default will have the opportunity to rehabilitate the loans 2 times.
- After July 1, 2028, RAP, Standard, and IBR will be the only available repayment plans.
- Starting August 1, 2025, borrowers who are still enrolled in the SAVE IDR program will start to have interest accrue on their loans even though the loans will remain in forbearance.
- Borrowers still have the option to pay, even though payments are not due, but the payments will not count towards the respective PSLF or IDR forgiveness programs.
- Borrowers are encouraged to look at other available IDR repayment options like PAYE, ICR, and IBR
- Starting July 1, 2026, new borrowers’ repayment options will be limited, and new borrowers will be subject to limits on the amount of federal student loans they can obtain.
- If a borrower is still working on their program of study, they will not be impacted by the federal student loan limitations right away. They will have 3 academic years to complete their program of study before subject to the new limits.
- Now until June 30, 2028, all borrowers will have the option to still be enrolled in their respective repayment plans, but they will need to start reviewing their options to change their repayment plans to IBR, Standard, or RAP.
- Now until June 30, 2027, all borrowers will still have the same payment postponement options for their federal student loans.
- Now until June 30, 2026, new borrowers who are looking for repayment options will have all current repayment plans available.
- Starting July 1, 2026, borrowers on or after this date will be able to switch between repayment plans, the new Standard and RAP plans.
- Starting July 1, 2028, and moving forward, if borrowers who are currently on the IBR plan want to switch plans, they will only have the new Standard and RAP as options. They will not be able to reapply for IBR at all.
Starting on July 1, 2027, borrowers will have the chance to rehabilitate their federal student loans out of default at least 2 times per loan. If they default more than 2 times per loan, then the loan will remain in default until paid off or consolidated into brand new loans. The minimum payment to be made during the rehabilitation process will be $10. If the borrower decides to consolidate their federal student loans, if the loan is disbursed on/after July 1, 2026, their repayment plan options will be the new Standard and RAP.
If a student is currently enrolled in their program of study and is borrowing federal student loans to help pay the higher education institution, the student will have up to 3 academic years to complete their program of study. If they do not complete their degree in that 3-year time frame, the student will be subject to the federal student loan limits that were implemented on July 1, 2026.
Yes, it appears the school and the student’s enrollment status (i.e., part or full time) will still be a part of the amount of student loans a student may borrow. If the student is less than full time, they will not be able to borrow the maximum amount of federal student loans. Examples of enrollment statuses are below.
- Enrolled Full Time
- Enrolled Half Time
- Enrolled Less Than Half Time
Yes, starting July 1, 2026, a student may only borrow $257,500 in federal student loans during their lifetime. Loans that have been repaid, forgiven, discharged, or cancelled will be included in the overall lifetime limit for federal student loans. This limit does not include any Parent PLUS Loans or Direct PLUS Graduate Loans.
- Parents will be allowed to borrow (Parent PLUS Loans): The annual (yearly) federal student loan limit, per student, will be $20,000.
- The aggregate, maximum, Parent PLUS Loans a parent will be allowed to borrow per student’s degree is $65,000.
- Both parents will not be allowed to borrow the same annual (yearly) or aggregate, maximum, federal student loan limit for the same student.
The law changed the lifetime limit for professional borrowers. Starting July 1, 2026, the professional student will be subject to a lifetime federal student loan limit.
- First year and beyond as a professional student: The annual (yearly) federal student loan limit will be $50,000.
- The aggregate, maximum, student loan limit for a professional student: is $200,000.
The law changed the lifetime limit for graduate borrowers. Starting July 1, 2026, the graduate student will be subject to a federal student loan limit.
- First year and beyond as a graduate student: The annual (yearly) federal student loan limit will be $20,500.
- The aggregate, maximum, student loan limit for a graduate student is $100,000.
The law changed the total lifetime limit for undergraduate borrowers. Starting July 1, 2026, the undergraduate student will be subject to a lifetime federal student loan limit.
- First year as an undergraduate student: The annual (yearly) federal student loan limit will be $9,500. Out of this total, $3,500 may be in subsidized federal student loans.
- Second year as an undergraduate student: The annual (yearly) federal student loan limit will be $10,500. Out of this total, $4,500 may be in subsidized federal student loans.
- Third year and beyond as an undergraduate student: The annual (yearly) federal student loan limit will be $12,500. Out of this total, $5,500 may be in subsidized federal student loans.
- The aggregate, maximum, federal student loan limit for an undergraduate is $57,500. Out of this total, $23,000 may be in subsidized loans.
Starting July 1, 2026, Graduate or Professional PLUS loans will no longer be available. There will also be a total limit for federal Direct Unsubsidized Stafford Loans.
No, the lowest possible monthly payment a borrower could have on the RAP would be $10. The monthly payment could be calculated to be more than $10 since this plan’s monthly payment calculations is based on income and family size.
Yes, if the monthly payment does not cover all interest due, then the remaining interest not paid by the borrower will not be owed.
If during your medical or dental residency you are working for a qualifying nonprofit or public service hospital, you may still pursue PSLF after training. Time spent in residency and fellowship while working at a qualifying nonprofit or public service hospital will also continue to count towards the required 120 monthly payments. The qualifying payments do not need to be consecutive, but they will only count from October 1, 2007, forward.
Starting July 1, 2027, economic hardship and unemployment deferments will no longer be available. There will still be a forbearance option, but it will be limited to 9-month increments during any 24-month (2 year) period. Federal loan servicers will still have the option to place borrowers in temporary forbearances throughout the life of the loans.
If the Parent PLUS loans are disbursed and/or consolidated on/after July 1, 2026, the only repayment option will be the new Standard Repayment Plan. If the parent is pursuing forgiveness under the Public Service Loan Forgiveness Program (PSLF), their only option to attempt forgiveness under that program is with the repayment term of 10 years. As a result, there is a likelihood that the loans would be paid off prior to or around the same time as PSLF forgiveness eligibility.
If the parent wants to pursue forgiveness under their respective PSLF or IDR programs, they will need to review the below options for those Parent PLUS loans and take the necessary steps to submit applications before June 30, 2026.
- The available IDR plan is currently ICR until the Department of Education implements the changes to the IBR program. DOE is expected to release further details but exactly when is not yet known.
- To be eligible for ICR, and in the future, IBR, the parent will have to consolidate the Parent PLUS loans, which will need to have a disbursement date prior to July 1, 2026.
- If the disbursement date is on or after July 1, 2026, their only repayment option will be the new Standard Repayment Plan.
If the borrower recently consolidated their loans or has loans disbursed on/after July 1, 2026, they will only have the opportunity to apply for the two new repayment plans, Standard and RAP.
If the borrower is currently on an IDR plan or does not take out any new loans including consolidation, they will have the opportunity to apply for the IBR Plan from now until June 30, 2028. They will need to proactively apply for IBR. If they do not apply for IBR by June 30, 2028, then they will be placed on the RAP plan starting July 1, 2028. Since consolidated Parent PLUS borrowers are currently only eligible for ICR, once IBR becomes available for enrollment they will need to apply for IBR since that will be their only IDR option. Additional changes to IDR may also apply.
The RAP plan will be based on a percentage of the borrower’s adjusted gross income. Adjusted gross income will be divided by 12, and then $50 will be subtracted from any dependents listed on the borrower’s tax return. If a dependent is not on the borrower’s tax return, then they will not be included in the RAP calculation. This means that if a borrower is married and files their taxes separately from their spouse, but the spouse claims the dependent on their tax return, the family size that will be used will be 2 instead of 3. Previously, with the other IDR plans, poverty level was considered with the calculation, and the family size wasn’t dependent on the tax return.
The new Standard Repayment Plan uses the borrower’s loan balance, and the repayment term will range from 10 years to 25 years. Below are some possible examples for how the repayment terms will be implemented:
- $25,000 or less with a repayment term of 10 years
- $25,000–$50,000 with a repayment term of 15 years
- $50,000–$100,000 with a repayment term of 20 years
- $100,000 or more with a repayment term of 25 years
The two new repayment plans that will be available for borrowers who take out a new federal student loan on/after July 1, 2026 (aka “new borrowers”), including consolidation, are the Standard Repayment Plan and the Repayment Assistance Plan (RAP). The Standard Repayment Plan uses the borrower’s loan balance to determine the length of repayment and payment amount. The RAP uses the borrower’s loan balance, income, and family size to determine the monthly payment. The repayment term will be 360 months or 30 years, with the possible opportunity for forgiveness. The RAP plan is still an available plan for the PSLF program as well as the Standard 10-year Repayment Plan.
Student Loan Payments
You may make additional payments greater than the installment amount at any time without penalty. Additional payments are applied to your principal balance after all outstanding interest is satisfied.
Standard Payment Application: Payment is applied first toward any late fees, next to outstanding accrued interest then to the principal balance. Partial Payments: Payments less than the required monthly installment amount are applied using the standard payment application. Payments less than the required monthly amount may cause your account to become delinquent. We may report information about your account to consumer reporting agencies. Late payments, missed payments, or defaults on your account may be reflected on your credit report.
A payoff statement is a document from your current student loan servicer(s) that tells us how much we need to pay them in order to pay off your student loan with your current lender. This is different from the monthly statement you receive, as it considers future dated interest you may owe and is typically generated when the borrower requests it from the servicer either online or over the phone. Each student loan servicer has its own process for generating payoff statements and providing them to borrowers. Once you begin your application, a Payoff Statement Guide can be accessed within the dashboard that provides more information about payoff statements and how you can obtain one from your current lender(s).
If your student loans are currently in a grace period, KeyBank can match the grace period on your new refinance loan for generally up to 6 months. Additional documentation may be requested during this time.
Yes. There are several payment options that you can choose from, including in-school deferment. Each deferment option includes a six-month grace period following graduation or termination of enrollment. Any interest accrued during any period of deferment or grace will be added to the principal balance at the beginning of the full repayment period.