SunTrust Private Student Loan Disclosures
SunTrust recommends comparing all aid alternatives including grants, scholarships, and federal loans, prior to applying for a private student loan.
SunTrust Bank, Member FDIC. © 2018 SunTrust Banks, Inc. SunTrust and Custom Choice Loan are federally registered trademarks of SunTrust Banks, Inc.
Certain restrictions and limitations may apply. SunTrust Bank reserves the right to change or discontinue these programs without notice. Availability of all loan programs is subject to approval under the SunTrust credit policy and other criteria and programs may not be available in certain jurisdictions.
1. The 1% principal reduction is based on the total dollar amount of all disbursements made, excluding any amounts that are reduced, cancelled, or returned. To receive the principal reduction, the reward must be requested from the servicer, the student borrower must have earned a bachelor’s degree or higher and proof of such graduation (e.g. copy of diploma, final transcript or letter on school letterhead) must be provided to the servicer. This reward is available once during the life of the loan, regardless of whether the student receives more than one degree.
2. Interest rates and APRs (Annual Percentage Rates) depend upon (1) the student’s and cosigner’s (if applicable) credit histories, (2) the repayment option and repayment term selected, (3) the requested loan amount and (4) other information provided on the online loan application. If approved, applicants will be notified of the rate applicable to your loan. Rates and terms are effective for applications received after 4/01/2018. The variable interest rate for each calendar month is calculated by adding the current One-month LIBOR index to your margin. LIBOR stands for London Interbank Offered Rate. The One-month LIBOR is published in the "Money Rates" section of the Wall Street Journal (Eastern Edition). The One-month LIBOR index is captured on the 25th day of the immediately preceding calendar month (or if the 25th is not a business day, the next business day thereafter), and is rounded up to the nearest 1/8th of one percent. The current One-month LIBOR index is 1.875% on 4/01/2018. The variable interest rate will increase or decrease if the One-month LIBOR index changes. The fixed rate assigned to a loan will never change except as required by law or if you request and qualify for the ACH reduction benefit(s). Rates and terms effective for applications received on or after 4/01/2018.
3. The 15 year term is only available for loan amounts of $5,000 or more. Payment examples (all assume a 45-month deferment period and a six month grace period before entering repayment): 7 year term: $10,000 loan disbursed over two transactions with the partial interest repayment plan, a 7-year repayment term (84 months), and a 7.946% APR would result in a monthly principal and interest payment of $192.21. 10 year term: $10,000 loan disbursed over two transactions with the partial interest repayment plan; a 10-year repayment term (120 months) and a 8.411% APR would result in a monthly principal and interest payment of $155.67. 15 year term: $10,000 loan disbursed over two transactions with a partial interest repayment plan; a 15-year repayment term (180 months) and a 8.890% APR would result in a monthly principal and interest payment of $129.68.
4. Making interest only or partial interest payments while in school will not reduce the principal balance of the loan. Partial Interest Payment plan of $25 per month is available on loans of $5,000 or more. Payment example assumes 45-month deferment period and a six month grace period before entering repayment: $10,000 loan disbursed over two transactions with a partial interest repayment plan, a 10-year repayment term (120 months) and a 8.408% APR would result in a monthly principal and interest payment of $155.64. For Partial Interest and Fully Deferred loans, any accrued and unpaid interest will be capitalized (added to your principal loan balance) when repayment of principal and interest begins. Payments may be deferred (1) while student is enrolled at least half-time at an approved school, and (2) during the 6 month grace period after graduation or dropping below half-time status, but the total initial deferment period, including grace period, may not exceed 66 months from the first disbursement date. There are no prepayment penalties. For Immediate Repayment loans, the first payment of principal and interest will be due approximately 30-60 calendar days after the final disbursement date. The minimum monthly payment is $50.00. Any applicant who applies for the loan the month of, the month prior to, or the month after their graduation date, as stated on the application or certified by the school, will only be offered the immediate repayment option.
5. Interest rate reductions offered for automatic payment from a bank account: 0.25% interest rate reduction when ACH payments are made from any bank account and an extra 0.25% interest rate reduction when ACH payments are made from a SunTrust Bank account. ACH interest rate reduction(s) apply when full payments (including both principal and interest) are automatically drafted from a bank account. Interest rate reduction(s) will remain on the account unless (1) the automatic deduction of payments is stopped (including times during deferment or forbearance) or (2) there are three automatic deductions returned for insufficient funds within the life of the loan. The additional SunTrust Bank account ACH interest rate reduction will be applied after the first automatic payment is successfully deducted from a SunTrust Bank checking, savings or money market account and will be removed for the reasons stated above or if you close your SunTrust Bank account. In the event the benefit(s) is removed, the interest rate stated in the Credit Agreement shall be applied in accordance with the terms of the Credit Agreement.
6. The minimum loan amount is $1,001 with exceptions based on the student’s state of permanent residence, as follows: Alaska: $5,001, Colorado: $3,001, New Mexico: $2,501, Oklahoma: $5,001, Rhode Island: $5,001, South Carolina: $3,601. The maximum annual loan limit to cover in-school expenses for each academic year (July 1 to June 30 of the applicable year) is determined by your school’s cost of attendance, minus other financial aid such as federal student loans, scholarships or grants, up to $65,000 for the Custom Choice Loan or up to $95,000 for the Graduate Business Loan. The loan amount must be certified by the school. In any event, the loan amount cannot cause the aggregate maximum student loan debt (which includes all student loans and certain unsecured consumer debt) up to $150,000 for the Custom Choice Loan or up to $175,000 for the Graduate Business Loan, per applicant.
7. To be eligible for cosigner release, the first 36 consecutive monthly principal and interest payments must be received by the servicer within 10 calendar days after their due dates. Alternatively, provided that you have not made any late payments, you can receive the benefit prior to the end of the first 36 months of scheduled principal and interest payments if you have prepaid part of your loan and the aggregate amount that you have paid equals the amount that would be due over the first 36 months of scheduled principal and interest payments, based on the monthly payment amount in effect when you make your payment(s). Cosigner release may not be available if a loan is in forbearance.
8. Private student loans that can be refinanced with a new SunTrust private student loan are private student loans and private consolidation loans that the student applicant used for, or to refinance loans used for, postsecondary Qualified Higher Education Expenses (as defined in the Internal Revenue Code) not currently in a past due status. Loans that cannot be refinanced into this loan are (1) private student loans for which the student applicant is not the primary borrower, (2) Federal student loans and (3) student loans made by an educational institution.
9. The legal age for entering into contracts is 18 years of age in every state except Alabama (19 years old), Nebraska (19 years old, only for wards of the state), and Mississippi and Puerto Rico (21 years old).
10. Payments may be deferred (a) while a student is enrolled at least half-time at an approved school, and (b) during the 6 month grace period after graduation or dropping below half-time status, but the total initial deferment period, including the grace period, may not exceed 66 months from the first disbursement date. Any accrued but unpaid interest will be capitalized (added to the unpaid principal loan balance) when repayment of principal and interest begins. There are no prepayment penalties.