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 on or after 7/1/2018. The low APR assumes a 7-year $10,000 loan, with two-disbursements and no deferment, and reflects a 0.25% interest rate reduction for auto pay (see below for more information). The high APR assumes a 15-year $10,000 loan with two disbursements. The current variable APRs for the program range from 3.635% APR to 12.875% APR and the current fixed APRs for the program range from 5.110% APR to 14.051% APR. 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 2.125% on 7/1/2018. 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 auto pay discount.
Earn an interest rate reduction for making automatic payments of principal and interest from a bank account (“auto pay discount”). 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 Bank checking, savings, or money market account. SunTrust Bank, Member FDIC. The auto pay discount will continue until (1) automatic deduction of payments is stopped (including during any deferment or forbearance) or (2) three automatic deductions are returned for insufficient funds during the life of the loan. The extra 0.25% interest rate reduction when you auto pay from a SunTrust Bank account will be applied after the first automatic payment is successfully deducted and will be removed for the reasons stated above. In the event the auto pay discount is removed, 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.
Repayment term options include 7, 10 or 15 years. 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 partial interest repayment, with a 7-year repayment term (84 months), and a 8.468% APR would result in a monthly principal and interest payment of $199.90. 10 year term: $10,000 loan disbursed over two transactions with partial interest repayment, with a 10-year repayment term (120 months) and a 8.938% APR would result in a monthly principal and interest payment of $162.92. 15 year term: $10,000 loan disbursed over two transactions with partial interest repayment, with a 15-year repayment term (180 months) and a 9.423% APR would result in a monthly principal and interest payment of $136.90.