LIBOR to SOFR Transition

Coronavirus (COVID-19) Updates

Last updated: 7/15/2020

We understand that many borrowers are affected by the Coronavirus (COVID-19) and are looking for assistance. As a servicer of student loans, LendKey is obliged to follow the policies of our lending partners, and we are working with them to explore and provide relief options for borrowers who are impacted during this trying time.

Will there be any changes to my services?

The health and safety of our customers and employees is our number one priority. Our normal business hours remain unchanged and we are not expecting any interruptions to the service we provide. Your account can always be accessed online 24-7 from your MyAccount Opens in new window.

If we alter any processes during this crisis we will notify customers who may be impacted.

What can I do if I am having difficulties meeting my financial obligations?

If you are experiencing a hardship and unable to make your monthly payment, you may submit an online forbearance application and any necessary supporting documentation directly from your MyAccount Opens in new window. To access the application, click the Trouble Making Paymentslink.

If you have additional questions, we have a dedicated team to help answer any of your questions and to guide you through options on an individual basis. Please reach out to this team directly at

Does the government's announcement regarding student loan interest impact my student loans serviced by LendKey?

Currently, the interest waiver on student loans applies to loans held by federal government agencies. Loans held by LendKey are considered private student loans and not part of that program. If you are a LendKey customer and have concerns about your ability to meet your student loan obligations, please reach out to

What should I do if my school sent me a refund due to Coronavirus (COVID-19)?

If you received a refund check from your school you can apply the refund to your loan balance. Information on how to make a one-time payment can be found on your MyAccount.

Beginning in July 2023, the London Interbank Offered Rate (“LIBOR”), a benchmark index used to calculate interest rates on many variable rate loans, is being completely phased out. Many of the variable rate loans serviced by LendKey Technologies, Inc. (“LendKey”) are currently pegged to LIBOR, and, therefore, a substitute comparable index – the Spread-Adjusted CME Term Secured Overnight Financing Rate (“SOFR”) – will be replacing LIBOR for these loans.  We want to provide all borrowers who currently have variable rate loans serviced by LendKey with more information about this change. Please note that the SOFR replacement does not change any other terms or conditions related to these loans and that you do not need to take any action in connection with this update.  

What is the Secured Overnight Financing Rate (SOFR)?

The SOFR index is based on rates that financial institutions pay one another for overnight loans, and the rate is published daily by the Federal Reserve Bank of New York. In anticipation of LIBOR being phased out, the SOFR index was identified and recommended by the Federal Reserve Board and industry groups as the preferred replacement for LIBOR on variable rate student loans. Additionally, in 2022, Congress enacted the Adjustable Interest Rate (LIBOR) Act in order to recognize the need for a uniform, nationwide solution for replacing the LIBOR index, and identified SOFR as the benchmark replacement. Congress also specified spread adjustments in the legislation that are intended to address minor differences between the two indexes. 

How does this impact my current variable rate loan?

LendKey services variable rate loans that adjust on a monthly or quarterly basis, and rates are set by using an index and adding a margin to it, which can be found in your loan documentation. The LIBOR index will be discontinued on June 30, 2023, and all existing loans using the LIBOR index will be replaced with the comparable SOFR-based index when the LIBOR index can no longer be referenced for the applicable variable rate calculation. If the loan’s variable rate is currently based on the 1-month LIBOR index, then it will use the corresponding 1-month Spread-Adjusted CME Term SOFR, and if the loan’s variable rate is currently based on the 3-month LIBOR index, the loan will use the corresponding 3-month Spread-Adjusted CME Term SOFR. The banking regulators and industry groups who have recommended SOFR as the appropriate replacement index for LIBOR have determined that it is a comparable index that should minimize changes to monthly payments and future disruptions.     

Replacing the index will not materially change other terms of your loan, such as the maximum interest rate you may pay during the term of the loan or the timing of any interest rate adjustments.  Additionally, fixed rate loans will not be impacted by this transition. 

How can I tell if my loan is currently on the LIBOR index?

All impacted borrowers and cosigners will receive an email notice in April and June, outlining the transition. Additional loan specific information can always be found through your MyAccount portal, as well as in your loan documentation. 

Where can I find the current SOFR rates?

The CME Term SOFR will be administered by the CME Group Benchmark Administration, LTD, and will be calculated and published (inclusive of spread adjustments) by Refinitiv Limited (“Refinitiv”) on Refinitiv’s website.