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I probably should weigh in on this topic as I have the Keybank consolidation loan.

The offer that I received gives me a 5% upfront principal reduction, plus the reduction for automatic payment plus the reduction for the ontime payments. But I do not remember if I get the reduction after 3 or after 4 years. But it seems to me that in your calculation, you didn't take into consideration that the Keybank consolidation also offered a reduction after a certain amount of years.

Because the terms didn't seem clear to me initially, I called in and asked to speak specifically with the AES group that handled the Keybank consolidation. I had them send me the terms in writing. I have it filed but my house is undergoing renovations so I can't put my hands on it right now.

I suggest that you get them to clearly delineate the incentives offered with the Keybank consolidation.

On a positive note, I have had my loans serviced through them for the past 6 months without problems. They took the 5% reduction right off the top and then told me that if I was late or paid off the loan in full before 3 years, they would add the 5% back. A month later, my automatic payments kicked in and then they reduced my monthly payments further. I don't even think about my payments as they just get processed through my checking account without more interaction on my part.

LadyI, Keybank doesn't actually service the loan. It's run through AES and I don't really understand how Keybank is involved but other than selecting Keybank, I haven't had any further interaction with that bank.

Oh, and I started out with AES loans too. From my experience, you shouldn't do the application online. It defaults you to the AES Network Consolidation loans if you already have AES loans. As you have learned, the Network Consolidation terms aren't as favorable. AES is banking, correctly it seems, that most people would be too lazy to investigate further. Anyway, I called in and spoke directly to a customer service representative and explained that I wanted the Keybank loan. They forwarded my call to the right representative. Please note that this took several tries and several phone calls because some of the agents had no idea what they were talking about.

Since my loans have been consolidated and the automatic payments commenced, it has been smooth sailing. I intend to keep the incentive letter until my loans are fully paid in case any problems arise. (You know, "if it sounds too good to be true,....") I intend to prepay my loans but have been putting the other excess payments into a savings account so that I can pay the loan in full after the requisite 3 years pass.

Hope I helped!
Phoenix
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