The Custom Choice Loan from SunTrust - Private Student Loan Proposal Academic year 2020-2021 SUNY Fredonia March 10, 2020 - Fredonia.edu
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The Custom Choice Loan® from SunTrust Private Student Loan Proposal Academic year 2020-2021 SUNY Fredonia March 10, 2020
March 10, 2020 Mark Zaffalon Office of Financial Aid SUNY Fredonia 280 Central Avenue, 209 Maytum Hall Fredonia, NY 14063 Dear Mark, Thank you for providing SunTrust with the opportunity to respond to SUNY Fredonia’s Request for Information for private student loan lenders. SunTrust, in partnership with Cognition Financial, has designed an innovative private student loan program that offers your students and their families the ability to customize their loan options. Our sophisticated loan platform enables approved applicants to select between a fixed and a variable interest rate in the same application session. In addition, by selecting from multiple repayment terms and options, students and their families can determine the pricing and program that best meets their individual financing needs. Last, after loan approval, students can consider an in-school refinance option allowing them to add existing private student loans into the new loan for the purpose of securing a new (potentially lower) interest rate, different repayment terms and/or consolidating their loan balances. SunTrust is truly a leader in the private student loan marketplace. Thank you for your consideration. Please contact me if you have any questions regarding this proposal. Sincerely, Julie Lawton Manager, Business Development Cognition Financial (508) 954-3202 JLawton@cogfin.com
SunTrust
SunTrust is an organization driven by purpose and a personal touch and is passionate
about Lighting the Way to Financial Well-Being by helping clients, teammates and
communities achieve financial confidence.
As one of the nation's largest and strongest financial services companies, SunTrust offers
a full suite of products and services designed to meet the needs of our consumer,
business, corporate and institutional clients.
SunTrust knows that financial stress is prevalent in America, across all income levels. So,
we sparked the onUp Movement—to inspire everyone to move from financial stress to
confidence by taking the first step. Learn more at onUp.com.
For more details on SunTrust, visit suntrust.com.
Merger Update:
Truist: Two Legacies, One Future
BB&T and SunTrust, two iconic franchises, are combining in a merger of equals to
create the sixth-largest U.S. bank holding company with 275 years of combined
history serving clients and communities in high growth markets. The merger was
completed in December 2019. The combined company will be named “Truist”.
While there is a new name, you can be assured of the same great products and
services. Schools will see no changes in lender codes or processing set up. BB&T
was not previously offering private student loans, so we are excited to bring loan
products to this population. As the transition to Truist continues, we will keep you
updated along the way.Lender, Originator & Servicer SunTrust has been an education lender for nearly four generations and a provider of private student loans since 1996. During this time, colleges and universities across the U.S. have placed SunTrust on their preferred lender lists. SunTrust has partnered with Cognition Financial to provide families the Custom Choice Loan. The Custom Choice Loan origination process fully complies with federal requirements under the Higher Education Opportunity Act (HEOA) and Truth in Lending Act (TILA). In addition to program management, Cognition Financial has school Business Development Managers located strategically throughout the United States and stands ready to assist you with all your school’s loan processing and product information needs. American Education Services (AES), services the loans made under the Custom Choice Loan Program. AES is a national provider of student financial aid services, serving millions of students and thousands of schools through its loan guaranty, loan servicing, financial aid processing, outreach, and other student aid programs. AES is a leader in providing quality customer service to millions of student loan borrowers through its highly trained and experienced customer service representatives. SunTrust has never sold any Custom Choice Loans to investors. However, SunTrust reserves the right to do so in the future. Both SunTrust and Cognition Financial support responsible lending and are strong proponents of smart borrowing. Before applying for a private student loan, SunTrust recommends comparing all aid alternatives including grants, scholarships, and both federal and private student loans. To view and compare the available features of SunTrust private student loans, visit suntrust.com/studentloans. Loan Overview & Program Information The Custom Choice Loan program provides undergraduate and graduate students competitive pricing, a choice of a fixed or variable rate, and borrower benefits that encourage degree completion and thoughtful, informed borrowing decisions. The application process provides added transparency by displaying, in the same session, an estimated repayment calculation for the actual pricing offered. The online application also allows applicants to customize their loan options and see the impact of their choices on pricing before they make any commitment. The loan requires school certification and can only be used to pay for educational expenses as defined by the school.
Custom Choice Loan Overview
Product Name Custom Choice Loan
Lender Name SunTrust Bank
Lender Code 911304
Guarantor Code Q14
NCHELP Servicer Code Q12
(866) 296-3637
School Contact
Monday – Friday 9:00am-6:00pm ET
Information
PriorityService@cogfin.com
(866) 232-3889
Borrower Contact
Monday – Friday 9:00am-8:00pm ET
Information
Customchoice@alternativeloan.com
Application Link suntrust.com/studentloans
Program Manager Cognition Financial
American Education Services (AES)
Borrower Information (800) 233-0557
Loan Servicer School Information (800) 443-0646
aessuccess.org
Monday through Friday 7:30 AM to 9:00 PM (ET)
School Certification ELM, ScholarNet, SchoolCertify.com or FaxBorrower Application & Disclosure Process
Application Highlights
The online application process for the Custom Choice Loan provides applicants
transparency by displaying, in the same session, an estimated repayment calculation
based on the pricing an applicant is offered. The applicant can then customize loan
options and see the impact of their choices on the loan pricing before they make a
commitment to final loan terms.
Applications are accepted up to 6 months in advance of the student’s academic period
start date.
The following processing features are available for applicants:
• Online, same session, initial credit review
• Online application including loan customization and real-time pricing
calculations
• Our EasyInviteSM tool gives applicants a way to share the application with
their cosigner during the application process
• As an added convenience of EasyInviteSM, a cosigner may start the
application first and then invite the student to join once their information
has been entered
• Phone support is available to help applicants with questions during the
application process
• Applicants have the option to submit the Credit Agreement and Applicant
Self-Certification Form and supporting documents via e-sign, document
upload online, fax or mail
Title X of the Higher Education Opportunity Act – Process
Disclosure statements are provided in accordance with Regulation at the application,
approval and final stages of the loan process as detailed below:
• The Application & Solicitation Disclosure is part of the online application
and is presented to, and must be acknowledged by, the student and, if
applicable, the cosigner.
• The Approval Disclosure is presented electronically once all required
documentation has been received/accepted from applicants and must also
be acknowledged separately by the student and, if applicable, the
cosigner. The student and, if applicable, the cosigner, have 30 days to
accept the Approval Disclosure before the loan offer is withdrawn. A paper
copy may also be mailed if requested by an applicant.• The Final Disclosure is generated online and mailed once the application is
fully complete and approved. This is after school certification has been
received. The Final Disclosure can also be emailed to the applicant(s). The
Final Disclosure includes loan specifics and defines the rescission period in
which an applicant may cancel the loan.
Status Detail for Applicants
Multiple options are available for applicants to determine the status of a loan
application:
• Online: Applicants may access the application system via the SunTrust website
(suntrust.com/studentloans.com ) at any time to review application status and
to identify what, if any, documentation is outstanding.
• Email/mail communications: Email reminders are sent to applicants every two
calendar days for the first 20 days of the application period requesting missing
information, such as income verification or any other documents needed to
complete the loan process. If there is still outstanding information needed
after this time, additional reminders are sent via email and mail.
• Phone: The program’s voice response unit is updated in order to provide up-to-
date inquiries via phone after normal business hours.
Loan Details after the Loan is disbursed
Once the loan has been disbursed, loan information, account information, and
repayment information are available online through the servicer’s website at
aessuccess.org.National SunTrust Custom Choice Loan Statistics The sophisticated loan platform for the Custom Choice Loan enables families to select between a fixed and a variable interest rate in the same application session. In addition, by selecting from multiple repayment terms and options, families can determine the loan options that best meet their individual financing needs. The charts below represent the choices families are making. The timeframe used was July 1, 2019-December 31, 2019 and uses SunTrust Custom Choice national school channel, cosigned volume.
Custom Choice Loan Details
The Student must:
• Be enrolled at least half-time in a degree seeking program at an approved
school.
• Be a U.S citizen or permanent resident alien.
• Available for past due balances for up to three calendar months after the
Eligibility academic period end date or graduation date.
• Be the legal age of majority at the time of application, or at least 17 years of
age if applying with a cosigner who meets the age of majority requirements in
the cosigner’s state of residence.1
• The Custom Choice Loan is not available to international students or
students/cosigners who permanently reside in Iowa or Wisconsin.
• Minimum Loan Amount: $1,0012
Borrowing • Maximum Loan Amount: lesser of the cost of attendance less aid or
$65,0002
Amounts • Aggregate Student Loan Limit (total amount of student loan debt
allowable): $150,0002
The Custom Choice Loan utilizes a custom credit score that is not solely based on a
commercially available credit score. Although a cosigner is not required, a
Credit creditworthy cosigner may increase the likelihood of approval. The student borrower
Criteria and/or cosigner must provide proof of the income stated on the application. Credit
check is valid for 180 days and the loan must be scheduled for disbursement within
210 days.3
Interest Rates
• Current variable APR range: 2.393% APR to 9.925% APR4
• Current fixed APR range: 3.817% APR to 11.050% APR4
Lowest APRs include a 0.50% interest rate reduction for auto pay from a SunTrust or BB&T
account.5
Rates
Interest Capitalization
Interest is generally capitalized once prior to entering repayment of principal and
interest and at the end of any deferment or forbearance period. For borrowers who
elect the Immediate Repayment option, interest that accrues between the first
disbursement and the final disbursement will be capitalized after the final
disbursement.Fees
There are no application, origination or prepayment fees for either the fixed or
Required to variable rate loan options.
Apply
Interest Rate Reduction for Auto Pay5
Borrowers can reduce their interest rate by up to 0.50% for auto pay.
• 0.25% interest rate reduction for auto pay.
• Additional 0.25% interest rate reduction for auto pay from a SunTrust or BB&T
account.
Graduation Reward
Upon graduation with a bachelor’s degree or higher, student borrowers can request a
Borrower 2% principal reduction to the net disbursement amount of the loan. Proof of
Benefits graduation is required.6
Cosigner Release
Cosigner release option is available to borrowers after making 36 consecutive on-time
payments.7
Loan Forgiveness
In the event of the primary borrower’s death or total and permanent disability, the
loan will be forgiven; proper documentation is required.8
Repayment Choice of Repayment Term:
Term 7, 10, or 15-year options9
Choice of Repayment Options:
• Full Deferment10
Repayment
• Interest Only 10
Options
• Partial Interest10
• Immediate Repayment10
Grace
The grace period is typically six months.11
Period
The Custom Choice Loan offers the ability to refinance existing private student loans12
into a new Custom Choice Loan. The new loan will combine funds for the upcoming
semester/academic period with the private student loans that the student wants to
refinance.
In-School
Refinance This feature gives the student the flexibility to select a new repayment term and
Option repayment option that best meets their current financial situation. This option is
presented to applicants post-approval and lets them input the loans they’d like to
refinance. The school is only required to certify the loan amount applicable to the
current semester/academic period. For more details on this option, visit
suntrust.com/loans/student-loans/private/inschool-refinance.Deferment and Forbearance Options
Fully Deferred Repayment
Principal and interest payments may be deferred while the student is enrolled at least half-
time at an approved school and during the six-month grace period after graduation or
dropping below half-time status. The total initial deferment period, including the grace
period, may not exceed 66 months from the first disbursement date.
Additional Deferment Option
An additional 48 months of deferment is offered to borrowers who re-enroll or are
continuously enrolled at least half-time in a Title IV eligible school 66 months after the first
disbursement date. This option is also available to borrowers in a medical internship or
residency program. The additional deferment for re-enrollment provides additional deferment
to borrowers who have exhausted their in-school deferment eligibility as follows:
• Borrowers who elected the Full Deferment10 option may be eligible for an
additional deferment period of up to 24 months of deferment from principal and
interest payments and an additional period of interest only payments for up to 24
additional months (depending on length of enrollment).
• Borrowers who elected the Interest Only Repayment10 or Partial Interest
Repayment10 option may request an additional interest only period (of full interest
payments) for up to 48 additional months (depending on length of enrollment).
• For loans with a 7 or 10 year9 principal and interest repayment term, additional
deferment for re-enrollment shall extend the repayment period by the same
number of months used by the additional deferment.
• In lieu of receiving written notification from the borrower, the Servicer may treat
any notice of new enrollment from the School or the National Student
Clearinghouse as written request for Additional Deferment and apply the
deferment automatically.
Alternative Repayment Options
Alternative repayment options are available and provide up to 36 months of reduced
payments as follows:
• Up to 12 months of interest only payments with equal payments of principal and
interest for the remainder of the repayment term.
• If a borrower or cosigner requests further assistance, an additional 24 months of
interest only payments are available with equal payments of principal and interest
payments for the remainder of the repayment term.Armed Forces Deferment
U.S. Armed Forces service members are eligible for 36 months of additional deferment when
the borrower or cosigner (if applicable) is on active duty.
Hardship Forbearance
Borrowers may be granted up to 12 months of forbearance for economic hardship during the
life of the loan. Forbearance is granted in three-month increments. Borrowers can contact
AES to request forbearance.
School Processing Information for the In-School Amount
Loan Amount Changes
Loan amount can be changed by contacting Priority Service via phone at (866) 296-
3637 or email at priorityservice@cogfin.com. Loan amount changes can also be
submitted via your preferred CommonLine processing method.
Changes to increase the certified loan amount can be made up to the approved loan
amount reflected on the Credit Agreement. These changes can be made via school
recertification up to 30 days after the loan is initially setup for disbursement prior to
the first disbursement being funded.
Disbursements
Funds for Custom Choice Loans are sent to the school. Disbursements can be made
daily or on specific days of the week, as requested by your office in up to four
disbursements within the academic period. Before funds can be disbursed, the
following will be verified:
• All Title X disclosures have been presented
• Applicant Self-Certification form has been received
• Student and cosigner, if applicable, have accepted the terms of the loan as
identified in their Approval Disclosure
• School certification received
• Rescission period, as outlined in the Final Disclosure, has expired
Refunds
For full refunds, the school has 60 days from the original disbursement date to
completely cancel the loan. If a full refund is received from the school more than 60
days after the original disbursement, the student is responsible for the accrued
interest.Cancellations
The school, student or cosigner can cancel a specific disbursement, or the entire loan,
at any time prior to the disbursement date. To refund or cancel a loan that has been
disbursed via EFT, your school has two options:
• Return the funds via EFT
• Issue a check payable to SunTrust and send it to the one of the following
addresses:
SunTrust Custom Choice Loan
Attention: Loan Disbursement
PO Box 848108
Boston, MA 02284-8108
Overnight:
SunTrust c/o Cognition Financial
Attn: Funding Department
200 Clarendon Street, 3rd Floor
Boston, MA 02166
Please include the following information with the check:
Student’s name and Loan ID number
Dollar amount of disbursement to be cancelled
Original disbursement date
Reason for cancellation
Early Awareness & Default Prevention
SunTrust believes it is not only important to provide smart borrowing information at
the beginning of the loan process, but to educate borrowers on their repayment
responsibilities throughout the process. Historically, the student’s very first payment
due is often the payment that is late or missed. In the spirit of education and assisting
the establishment of a positive credit history, the following plan has been developed
to help borrowers understand exactly when their repayment begins and how to
effectively manage private student loan debt.
Early Awareness Communications, prior to first payment due date:
• Approximately 45-60 days prior to repayment, a welcome package is mailed
to all borrowers and cosigners.
• Approximately 30 days prior to repayment, an email is sent to all borrowers
and cosigners advising them that the loan is going into repayment and also
explains payment options.• Prior to repayment, all borrowers and cosigners are called to advise them
that their loan is entering repayment.
• Approximately one day after the initial bill is sent, an email is sent to all
borrowers and cosigners advising the bill was sent and that the payment is
due.
Default Management
AES, the Custom Choice Loan servicer, has created an informational website,
YouCanDealWithIt.com, that guides borrowers and parents through all aspects of the
student aid process—prior to attending, during, and post-college. It gives practical
advice to parents, students (undergrad and graduate), and college graduates about
common financial situations they may be facing. The site does this by offering tips,
calculators, resources, helpful budgeting guidelines, information about student loans,
and more.
YouCanDealWithIt.com also has valuable resources that financial aid offices can take
advantage of. It provides information that helps schools create a default
management prevention plan and educate their students about education loans and
debt management to allow for a seamless transition from the classroom to the
working world.
• Financial Wellness Curriculum: A series of PowerPoint presentations on
topics that are important to today’s college student, such as financial
wellness, understanding financial aid and how to establish good credit.
These presentations are the perfect complement to your current
orientation program or exit counseling. This curriculum can help teach your
students the basics about money management and arm them with tips and
information to help them make smart, educated financial decisions.
• Creating a Default Prevention Plan: Developed to assist schools in creating
a default prevention plan and advising your students about educational
loans and debt management to allow for a seamless transition from the
classroom to the working world. This includes a three-step letter series, a
default aversion roster, knowing your cohort default rate and providing
sample call scripts and scenarios to explore the best possible options
available for dealing with delinquent student loan borrowers.
• Calculators and Downloadable Forms: Estimate monthly student loan
payments using the calculator appropriate to the type of repayment plan.
Also download and keep on hand deferment and forbearance forms for
student borrowers who are interested in and qualify for deferment and
forbearance options.Informative Website
Among the support SunTrust provides to borrowers and financial aid officers is a
comprehensive website at suntrust.com/studentloans. Website elements include:
• Custom Choice Loan information, including eligibility requirements and
borrower benefits
• Ways to Pay for College - resources for students and their families
• Scholarship search tools
• A step-by-step application checklist
• College Loan Calculator and repayment examples
• FAQ and glossary of financial aid terms
• Money management tips, including budgeting information
• Federal financial aid information
• Informational guides for Student Nursing and Business Degree candidates
Educational Materials for Students
SunTrust has created high-quality, easy-to-read college guides and articles about
student loans and paying for college. As part of its mission to minimize delinquency
and default rates, debt management guides are also available with helpful
information about budgeting, saving, and identity theft. To order any of these
materials, please contact your dedicated Business Development Manager.Disclosures SunTrust now Truist. ©2020 Truist Financial Corporation. SunTrust®, Truist, the SunTrust logo and Custom Choice Loan® are service marks of Truist Financial Corporation. All rights reserved. SunTrust reserves the right to change or discontinue this Custom Choice Loan program without notice. This loan program is subject to approval under the SunTrust credit policy and other criteria and may not be available in certain jurisdictions. The contents of this proposal are confidential and contain information that is proprietary to SunTrust Your school agrees that this proposal and its contents shall be maintained in confidence and may only be disclosed to employees of the school who need to know this information for the purposes of evaluating this proposal. SunTrust reserves the right to revise the proposal at any time. This proposal cannot be released beyond your institution unless so required by state or other applicable law. Before release, SunTrust requests notification so that opportunities for redaction are available to SunTrust under the prevailing statutes. EasyInviteSM is a registered service mark of Cognition Financial. Cognition Financial is not an affiliate of Lender. Before applying for a private student loan, SunTrust recommends comparing all financial aid alternatives including grants, scholarships, and both federal and private student loans. 1 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). 2 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: $5,201, Rhode Island: $5,001, South Carolina: $3,701. The maximum annual loan limit to cover in-school expenses for each academic year is determined by the school’s cost of attendance, minus other financial aid, such as federal student loans, scholarships or grants, up to $65,000. The loan amount must be certified by the school. If the In-School Refinance Option is chosen, the maximum amount that can refinanced is $150,000 minus the amount to cover in-school expenses. In any event, the loan amount cannot cause the aggregate maximum student loan debt (which includes all student loans and certain unsecured consumer debt) to exceed $150,000 per applicant (on cosigned applications, separate calculations are performed for the student and cosigner). 3 Initial credit approval is valid for 180 calendar days from the date on which SunTrust obtained a credit report. If the loan is not scheduled for disbursement within this time period, the application will be withdrawn. 4 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 3/1/2020. The low APRs assume a 7-year $10,000 loan with two-disbursements, no deferment and payments beginning 30-60 days after the last disbursement via auto pay from a SunTrust or BB&T account (see Footnote 5 for information about the auto pay discount). The high APRs assume a 15-year $10,000 loan with two disbursements and full-deferment. The variable interest rate for each calendar month is calculated by adding the current index (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 1.625% on 3/1/2020. The variable interest rate will increase or decrease if the One-month LIBOR index changes or if a new index is chosen. The applicable index or margin for variable rate loans may change over time and result in a different APR than shown. The fixed rate assigned to a loan will never change except as required by law or if you request and qualify for the auto pay discount. 5 Earn an interest rate reduction for making automatic payments of principal and interest from a bank account (“auto pay discount”) by completing the necessary direct debit form provided by the Servicer. Earn a 0.25% interest rate reduction when you auto pay from any bank account and an extra 0.25% interest rate reduction when you auto pay from a SunTrust or BB&T checking, savings, or money market account. The auto pay discount will be applied after the Servicer validates your bank account information and will continue until (1) three automatic deductions are returned for insufficient funds during the life of the loan (after which the discount cannot be reinstated) or (2) automatic deduction of payments is stopped (including during any deferment or forbearance, even if payments are made). In addition, the extra 0.25% interest rate reduction for auto pay from a SunTrust or BB&T checking, savings or money market account will be discontinued if automatic payments are no longer made from one of the aforementioned accounts. In the event the auto pay discount is discontinued, the loan will accrue interest at the rate stated in your Credit Agreement. The auto pay discount is not available when payments are deferred or when the loan is in forbearance, even if payments are being made. Please note that SunTrust and BB&T have branch locations in certain states (visit suntrust.com or BBT.com to determine locations). Most transactions can be performed online or over the phone, however some infrequent transactions may require visiting a branch. This is not a solicitation to open such accounts. Some products may have an associated cost. 6 The 2% principal reduction is based on the total dollar amount of all disbursements made, excluding any amounts that are reduced, cancelled, or returned. To receive this principal reduction, it 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. 7 A cosigner may be released from the loan upon request to the servicer, provided that the student borrower is a U.S. citizen or permanent resident alien, has met credit criteria, and met either one of the following payment conditions: (a) the first 36 consecutive monthly principal and interest payments have been made on-time (received by the servicer within 10 calendar days after their due date) or (b) the loan has not had any late payments and has been prepaid prior to the end of the first 36 months of scheduled principal and interest payments in an amount equal to the first 36 months of scheduled principal and interest payments (based on the monthly payment amount in effect when the most recent payment is made). As an example, if 30 months of consecutive on-time payments have been made, and then, based on the monthly payment amount in effect on the due date of the 31st consecutive monthly payment, a lump sum equal to 6 months of payments is paid, the payment condition will be satisfied. Cosigner release may not be available if a loan is in forbearance. 8 If the student dies after any part of the loan has been disbursed, and the loan has not been charged off due to non-payment or bankruptcy, then the outstanding balance will be forgiven if the servicer is informed of the student's death and receives acceptable proof of death. If the student becomes totally and permanently disabled after any part of the loan has been disbursed and the loan has not been charged off due to non-payment or bankruptcy, the loan will be forgiven upon the servicer’s receipt and approval of a completed discharge application. If the student borrower dies or becomes totally and permanently disabled prior to the full disbursement of the loan, and the loan is forgiven, all future disbursements will be cancelled. Loan forgiveness for student death or disability is available at any point throughout the life of the loan. 9 The 15-year term is only available for loan amounts of $5,000 or more. Payment examples (all assume 45-month deferment period, a six-month grace period before entering repayment, no rate reduction for auto pay and the Partial Interest Repayment option): 7-year term: $10,000 loan disbursed over two transactions with a 7-year repayment term (84 months) and an 7.991% APR would result in a monthly
principal and interest payment of $192.87. 10-year term: $10,000 loan disbursed over two transactions with a 10-year repayment term (120 months) and an 8.455% APR would result in a monthly principal and interest payment of $156.28. 15-year term: $10,000 loan disbursed over two transactions with a 15-year repayment term (180 months) and an 8.935% APR would result in a monthly principal and interest payment of $130.28. 10 Any applicant who applies for a loan the month of, the month prior to, or the month after the student’s graduation date, as stated on the application or certified by the school, will only be offered the Immediate Repayment option. The student must be enrolled at least half-time to be eligible for the partial interest, fully deferred and interest only repayment options unless the loan is being used for a past due balance and the student is out of school. Making interest only or partial interest payments during in-school deferment (including the grace period) will not reduce the principal balance of the loan. With the Full Deferment option, payments may be deferred while the student is enrolled at least half-time at an approved school and during the six 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. The Partial Interest Repayment option (paying $25 per month during in-school deferment) is only available on loans of $5,000 or more. See footnote 9 for repayment examples. With the Immediate Repayment option, the first payment of principal and interest will be due approximately 30-60 calendar days after the final disbursement date and the minimum monthly payment will be $50.00. There are no prepayment penalties. 11 Typically the grace period is the earlier of six months from the date (a) the student graduates, (b) the student drops below half-time status or (c) 60 months from the first disbursement date. The Immediate Repayment option does not have a grace period. 12 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 used to refinance loans used for, certain postsecondary expenses, not currently past due. 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. Loans being refinanced must have been used for “qualified higher education expenses”. Qualified higher education expenses as defined by the Internal Revenue Code inclusive of Higher Education Act’s “cost of attendance” definition. Visit suntrust.com/loans/student-loans/private/inschool-refinance to learn more about the In-School Refinance Option.
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