I recommend playing with the key. Moving the key in all directions, pulling it out slightly, etc. If you are very lucky and get it in position 1, remove it and replace the lock assy. Don't even bother cleaning and fixing. Locks are very cheap. It's not worth risking another jam.
If you can't get it in position 1, you'll need to do some cutting. I've done this once. It's a pain in the A**.
This has been discussed before. Do a search for more info.