A Key Bank Student Loan as an Education Financing Option
Among the many options a needy student has to finance his college undergraduate and graduate education, the Key Bank student loan should be high in the list. Not only because the Key Bank people are professionals, but mostly because the bank offers innovative student loan packages tailored to fit even uncommon needs. Some of its features are not available in other sources of student loans.
Key Bank History
The Key Bank traces its roots to 1849 when the Society for Savings of Cleveland, Ohio, was founded and also to 1825 with the establishment of the Commercial Bank of Albany, New York. The Society for Savings acquired the Cleveland Central National Bank and Ameritrust (Cleveland Trust) in 1968, and merged with the Key Bank of New York in 1994 to form the KeyCorp.
Key Bank Loan Menu
The Key Bank student loan packages include the regular loans:
Stafford loans that also feature attractive discounts and incentives for timely payments, check payments, or online bill pay and e-billing;
Federal Parent PLUS loans and Graduate/Professional PLUS loans that offer a choice of repayment plans: extended, graduated, standard or income-based,
as well as alternative loans:
Private parent loans that support parents of students enrolled at any level from elementary to graduate school.
Key alternative loans for students who need supplemental financing after government loans.
Continuing education loans for half-time students enrolled in professional or technical programs.
LawAchiever loans that may cover total tuition of law students.
MedAchiever loans for travel and residency costs beyond academic college tuition.
Dental Assistance loans which are similar to LawAchiever and MedAchiever loans.
Key Alternative loans which are for graduate students
Key Bank Private Education Loan for Undergraduates which are subject to credit approval.
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Amounts, Interests, Charges
The KeyBank Private Education Loan for Undergraduates lends a minimum of $1,500 and maximum of $30,000, or $40,000 where the cost of education has been determined to be above $30,000. However, the total cumulative Key Bank student loan must not exceed $130,000 at any time. Furthermore, the loans must be applied for separately every academic year.
The interest charges for a Key Bank student loan are generally based on the London Inter-Bank Offering Rates (LIBOR) plus 3.50%, called the Annual Percentage Rate (APR). However, some loans have higher APR –as high as 7.75%— depending on the creditworthiness of the applicant and/or co-signatory, or due to higher LIBOR. Thus, APRs have ranged from 9.21% to 14.71%.
A Key Bank student loan origination fee of 3.0% to 10.5% is also tacked onto the loan amount, to minimize upfront out-of-pocket expense for the student-applicant.
The KeyBank Private Education Loan for Undergraduates rates for this year are 8.85% for interest and 9.25% for APR effective January 1, 2007.
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