Immediately after I posted I had the realization of what you pointed out here. It wasn't Key Bank's problem. I understand that.

What I find strange is how, even when you want to set up a payment plan or extend forbearance, KeyBank doesn't care and just says "It shows here that you've used up your 6 months of forbearance and your 1 year of interest only payments". They just don't even care to work with a person who truly desires to pay back their loan (because we promised that we would do so).

Instead they sell off the loan to some collection agency for pennies on the dollar- who then sells it to another and another when you don't reply (or when you inform the collection agency that they are violating a state law that forbids harassing and embarrassing you by calling your workplace repeatedly).

I feel obligated to pay back my loan that I took out in good faith- when I have the income to do so- but I'm not going to pay back my debt to some random collection company that won't give the money to Key Bank.

Once you've used up your forbearance KeyBank really isn't interested at all in setting up a plan that can allow a person to pay back their debt that they feel obligated to pay back.
That's where my attitude comes from that caused me to post "For the record, KeyBank received $14 million of our tax dollars in the bailout of 2008". They didn't even want to make it so that I can pay.
Which leads me to believe that writing the loss off ("loan charged off" as it says on my credit rating) must be extremely beneficial to KeyBank's tax obligation to the IRS. I wonder if 100% of the money they lose is just erased from their tax obligation?
Maybe the guy who worked in this industry can answer that question or correct my suspicion.

If KeyBank were to call me when my paychecks say United Airlines on them- I would be more than happy to pay. In fact, when I can afford it, I would seek them out... except that they have sold the loan to collection agencies, charged off the loan and are done with it.