CLEVELAND, Ohio - September 26, 2008 - Key Education Resources (KER) today announced that it will discontinue offering private student loans. While honoring existing education loan commitments, KER will cease taking applications for new private loans on October 31, 2008. Key will continue servicing the existing loans in its portfolio,
This decision is consistent with Key's strategy of focusing on its core relationship businesses, and follows similar actions in other lending categories over recent years. It is also consistent with KER's commitment to help families minimize education debt by borrowing only what they need to pay for tuition expenses.
"These changes reflect the decisive action that is needed to manage our business through this challenging credit cycle," said Steven Dodd, President of Key Education Resources. "We are making adjustments that will enable us to serve the needs of our shareholders, through the efficient allocation of our capital resources and the continued focus of minimizing debt for families and students."
Amidst these challenges, KER remains focused on providing students and their families' access to high quality education payment solutions. While a number of lenders have exited the industry altogether, KER will continue to participate in the Federal Family Education Loan Program (FFELP) to originate Federal Stafford Loans and Federal PLUS Loans, as well as offer education payment plans through its Tuition Management System division.
Key Education Resources offers education payment solutions and has served as a trusted advisor for more than 55 years. KER services more than 1,000 client schools and two million-plus students and their families. At a time when student lending is less available and college graduates are saddled with higher debt as they begin their careers, KER's BorrowSmartsm offers an innovative way to finance a college education without mortgaging a student's future.
BorrowSmart® is the only true debt minimization service specifically designed for schools in the education payment industry, delivering the choice, objectivity and full transparency families need to make informed decisions about financing an education. This unique program helps minimize student debt by first looking at available scholarships, grants and gifts, and then at the lowest cost combination of monthly payments and loans to develop a full financial aid package. Students and families interested in learning more about BorrowSmartsm and Key's other college lending options should consult with their college financial aid office or visit https://www.key.com/borrowsmart.
Cleveland-based KeyCorp (NYSE: KEY) is one of the nation's largest bank- based financial services companies, with assets of approximately $102 billion. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally. For more information, visit https://www.key.com.
Posted 09/26/08 to www.NASFAA.org. Posting of press releases is done as a service to Members and does not imply endorsement or support by NASFAA. NASFAA does not review this information for content or accuracy.
