http://smucayman.com/forum/viewtopic...20f441798db#79

December 19, 2004

Important Announcement for All St. Matthew’s Students
On Financial Aid through KeyBank

On Friday December 17, 2004, a St. Matthew’s University staff member at the Oviedo office was notified by students who were having difficulty getting online with KeyBank. University staff immediately contacted KeyBank only to hear that, in fact, a change in policy with Key Education Resources had occurred. With no advance notice to St. Matthew’s or students, KeyBank (Key Education Resources) made a decision not to consider any new educational loans to students studying in any school located outside the United States that did not possess a Federal Student Loan Code.

Further contact with Key Education Resources indicated that they would not approve any “new” loan applications but would continue to fund all outstanding loans as well as pre-approved loans. This means that if a student has an approved loan application for a calendar year that KeyBank will fund that loan through December 2005. However, if the student had an approved loan for two semesters it will only be funded through August 2005. And if the loan was approved for only one semester it will be funded through April 2005. Any current pre-approved loans will be funded. They reported that they would not provide approval for any “new” loans now or in the future nor any loan applications were currently on hold.

Discussions with KeyBank personnel regarding reasons for this unexpected event revealed that this decision had nothing to do with any fault of St. Matthew’s University. KeyBank reported that it was an administrative decision to withdraw from the foreign market. St. Matthew’s officials were told that Key Bank has totally dismantled the Key Education Resources division handling foreign loans. While all efforts to alter this decision appear fruitless at this time, SMU will continue to pursue the possibility.
Key Bank reported that all your student loans with them will remain in deferred repayment status until you are no longer officially enrolled as a full time student in school or until you have completed your medical residency.

As this information was not formally provided to the University, other than through a phone call with Key Bank staff, and because St. Matthew’s University officials had not had the opportunity to discuss this matter, it was decided to withhold comment until Monday morning allowing time for the SMU administrators and officers to discuss viable alternatives for student financial aid.

It was determined that it will be necessary for students to shift their next loan application from MedAchiever to a Teri loan. Teri loans are available to all SMU students who were on Key Bank’s MedAchiever. While interest and deferred repayment schedules are similar, the maximum amount you can borrow will vary on whether you use a cosigner or not. Without a cosigner you will be eligible for up to $25,000 for an academic year (two semesters). With a cosigner you can borrow up to $45,000 per academic year (two semesters). If you are enrolled with the St. Joseph’s MSHA conjoint degree program this would not in any way affect your financing. However, for those not in the conjoint program while in basic science or in clinical rotations a cosigner, or private funds will be needed to make up the difference.

This disappointing KeyBank decision which has been handed to you and SMU is not the fault of SMU or any student. Certainly it is an inconvenience to you but we should be able to make an easy transition from MedAchiever to Teri following your last MedAchiever loan. Teri is an easy to work with program and having met the MedAchiever credit eligibility should make you equally qualified for the Teri loan. Canadian students will continue to be funded as you have in the past through the CanHelp Teri loans at the rates previously stated.

St. Matthew’s University officers will continue to look for alternative loan programs to assist you and will keep you apprised as to our progress. We will work to serve you in the financial aid office in Oviedo, Florida and answer your questions by email to (fa@smucayman.com). Your calls are also welcomed although there may be a long wait time since many students may be attempting to call for clarification. Please know that as we get more information, we will email critical information to the entire student body.

Jerry W. Thornton, Ph.D.
Vice President

Thanks so much for posting!

Yes thanks for the posting jgilbert63,

It is nice to hear some info from SMU officials. I just confirmed one more time that we have one of the best admin staff. While students from others schools are desperate trying to know what is going on with the issue of key bank, our school is not only working on that already but they are also posting announcements about this problem to calm down all their students and let them know what is really happening. Let’s go SUM we trust in you. Good luck to all of us.

Now let’s relax a little bit good night.

the school statement can't be faulted except for two things: a transition to Teri will not be easy for many.

Reasons: you need a cosigner to get the full amt for costs. Secondly, and probably even more importantly, Key tended to look at the full picture. Teri has certain hard and fast rules regarding certain things (and i am not talking bankruptcy and legal judgements and severe stuff like that) and they do not make any exceptions, period.

I know because my summer 04 was spent in these matters. But I guess the good news is this will not affect the coming semester. What will happen for the small minority of us who fall into the category of "got medachiever, possibly can't get teri" is anyone's guess.

Anyway, I suppose it's all part of the inherent risks of the offshore med school ordeal. Kept hearing about it, and now living it. Good luck to all.

Hey guys,

If anybody talks to Financial Aid office from SMU by any chance, don’t forget to post it here. I have been trying since early in the morning and I can not get in touch with them. They have to be very busy resolving this entire problem. Thanks and good

All Caribbean schools were dropped including the Big 3.


Edit: Ross and St. George are still eligible. But AUC is definitely not eligible.

__________________
Formerly known as "AUCDOCTOBE"

Honestly, no one here knows any more than was on that statement at the moment. I'll keep you updated as I am.

__________________
JP Yates
St. Matthew's University
jyates@smucayman.com
Visit www.stmatthews.edu, home of the official SMU Forums.

In business,which is what med school is, you must always have a backup plan. Alot of banks end up being purchased by other banks,etc. and new administrations can change. It may be that the med schools that survive are the ones who have the best banking relationships. One has to seriously question keybanks sense of timing.....right before the holidays? JP is one of the best people on the board so I would trust that you'll learn from him quickly what is known. Can imagine there are some phone lines on fire today.

__________________
Moderator - State Licensing Forum

Still skeptical after all these years.
This is it. There are no hidden meanings.WYSIWYG

http://www.internetmedicalschool.homestead.com

http://www.chiropractormds.homestead.com/index.html

Not to scare anyone but Teri and Keynote are two different loans and are not all the way similar.

Keynote Medachiever would approve you regardless of credit score as long as you had no negative entries on your credit report. In addition, Keynote used the Equifax Fico credit score and report for thier decision. Plus, Keynote had no maximum aggregate limit on the loans. And you could borrow a lot more money for the year.

Teri requires at least a 650 credit score and no negatives on the credit report. It is harder to get. In addition, they use Transunion -- the most stubborn of all the credit bureaus when it comes to deleting inaccurate information.

For those who don't have credit history, have a score below 650, or have certain inaccurate items on Transunion but not Equifax -- this will not be an easy transition.

Not to mention that as part of Teri's risk management procedures, they limit the amount of the loan per a year. For those going to an expensive island this is a killer. You must have a cosigner in order to meet your living expenses.

So, it won't be easy unless you have a cosigner and credit history -- conditions more stringent than the medachiever loan by miles.

BTW, great point Azskeptic!

__________________
Formerly known as "AUCDOCTOBE"

With Key Bank/Medachiever no longer a loan option for SMU students, what other options do we have?
I know many students will not be eligible to obtain the TERI loans due to either no credit history or other reasons. Does SMU have some kind of contingency plan in the works for this issue? Have they explored the possibilities of hooking up with other major banks or lenders such as Citizen's Bank, Bank of America, or even Sallie Mae? With the new semeser approaching right around the corner, there has to be a quick solution to this mess that KeyBank unfairly has thrown upon SMU and its students. Even if the school does some approach as far as not charging late fees for pending loans or whatever, I know that many students I've spoken to are worried about not having any money for start up expenses and other non-tuition expenses that they were relying heavily upon Medachiever for. Keep us all updated as soon as there's any news and especially if any new loan options pop up that we can jump on. I have faith in SMU and their FinAid dept (they came through for me a billion times lol)now we have to make sure that current and potential students will get through this w/o a prob. To the hardworking SMU Financial Aid team( Gloria and Cindy I only know by name/voice) and of course to JP...Thanks for all you're doing.