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If your financial aid package isn’t going to cover all your college expenses, a growing number of lenders offer private student loans that can help you close the gap. Learn how SunTrust private student loans would have helped pay for college, but note that they no longer offer these types of loans.
In this post:
- SunTrust Bank interest rates, loan terms, and fees
- SunTrust private student loans review
- How to apply for a SunTrust student loan
- SunTrust student loan perks
SunTrust Bank interest rates, loan terms, and fees
|Interest rates||Fixed or variable|
|Loan amounts||$1,001 to $65,000
($95,000 maximum for graduate business school students)
|Loan terms||7, 10, or 15 years|
|Fees||No application, origination, or disbursement fees|
|Enrollment||At least half-time in a bachelor’s, graduate or professional degree program at an approved school
(most 4-year public and private colleges and universities)
|Cosigner release||Available after 36 consecutive on-time principal and interest payments|
|Loan servicer||American Education Services (AES)|
Lowest APRs reflect autopay, loyalty, and interest-only repayment discounts where available | 1Citizens Disclosures | 2,3College Ave Disclosures | 11Custom Choice Disclosures | 7EDvestinU Disclosures | 8INvestEd Disclosures | 9Sallie Mae Disclosures| 10Ascent Disclosures
SunTrust used to offer student loans to both undergraduate and graduate students, including a loan that was open to international students, and another that was tailored to graduate business students.
SunTrust student loans offered a choice of a fixed or variable rate, and some excellent perks, including:
- Up to 0.50% in rate reductions for making automatic payments (0.25% reduction for authorizing autopay and an additional 0.25% if you made automatic payments from a SunTrust or BB&T account)
- Principal reduction as a graduation reward or a 0.25% rate reduction for on-time payments
- Option to refinance while still in school
- Cosigner release after 36 months of consecutive on-time payments
SunTrust private student loans review
SunTrust used to offer four private student loans to undergraduate and graduate students:
- Custom Choice Loan: This loan was available to undergraduates and graduate students. It rewarded you with a 2% principal reduction if you earned your degree.
- Start Student Loan: This loan was available to undergraduates and graduate students. It offered 0% APR for six months following the first disbursement of the loan.
- Union Federal Private Student Loan: This loan was open to international students and was available to undergraduate and grad students. It provided a 0.25% interest rate reduction once you had made 36 on-time payments.
- Graduate Business School Loan: This loan was aimed at students seeking an MBA or another advanced business degree. Qualifying students could borrow up to $95,000 and were eligible for a 1% principal reduction if they completed their degree.
To be eligible for the Custom Choice Loan, Start Student Loan, or the Union Federal Private Student Loan without a cosigner, you needed to have an income source and good credit. But the SunTrust Graduate Business School Loan did not require that you have a source of income to be approved without a cosigner.
Like most private lenders, SunTrust used to offer a range of repayment plans and loan terms.
There were four repayment plans for SunTrust student loans:
- In-school deferment: You’d make no monthly payments until six months after leaving school. Because interest starts accruing as soon as you take out your loan, this is typically the costliest repayment plan.
- Partial interest: If you borrowed at least $5,000, you could opt to pay $25 a month while you were still in school. That took care of some of the interest charges that accrue, so your loan balance didn’t grow as much while you’re in school.
- Interest only: You’d pay only the interest you owe each month while in school, so your loan balance didn’t grow while you were in school.
- Immediate repayment: Full principal and interest payments started as soon as you took out your loan — usually the cheapest option because you’d pay down principal in addition to interest while still in school.
As is always true for student loan prepayment, there were no penalties. You were free to make whatever additional principal and interest payments that you could fit into your budget — even if you were still in school.
The loan repayment term was also selected when you applied for a private student loan. Repayment terms for SunTrust loans were:
- Custom Choice Loan: 7, 10, or 15 years
- Start Student Loan: 15 years
- Union Federal Private Student Loan: 7, 10, or 15 years
- Graduate Business School Loan: 7 or 10 years
Remember, the shorter the repayment term, the lower the interest rate offered by most lenders. And the faster you pay your loan off, the less you’ll pay in interest. You’d also have higher monthly payments, but it’s a good idea to choose the shortest loan term you can afford.
How to apply for a SunTrust student loan
SunTrust student loans used to be a great match for many students, including international students and graduate business students. But other lenders may be willing to offer you better rates, so it’s important to compare rates from multiple lenders before accepting an offer.
SunTrust student loan perks
SunTrust stood out among private student lenders for making loans to international students who were not U.S. Citizens or permanent residents. In addition, SunTrust offered several perks that helped it stand out from the crowd:
- Principal reduction for earning your degree: The Custom Choice Loan offered a 2% principal reduction with proof of graduation. That was based on the total dollar amount of any Custom Choice Loan. So if you borrowed $35,000, you could get $700 back at graduation. Similarly, the Graduate Business School Loan offered a 1% principal reduction with proof of graduation.
- In-school refinance option: When you took out a SunTrust student loan, you had the option of refinancing any existing private student loans you already had into a new SunTrust loan. You had the convenience of making one monthly payment, and you may have been able to adjust the interest rate and repayment term of your existing loans in the process.
- Cosigner release: More than 90% of private student loans are cosigned by a parent, relative or friend. If you had a cosigner on a SunTrust loan, you could apply to have them released after you made 36 consecutive on-time monthly payments.
Compare rates from multiple lenders
A SunTrust student loan was a good solution for covering any gaps in your college financial aid. Before taking out private student loans, check to see if you’ve exhausted your federal student loan options. Then, if you still need money to pay for college, compare student loans from multiple lenders to ensure you’re getting the best rates and terms for your situation.
Credible makes student loan shopping quick and easy. Checking rates won’t impact your credit, and our lenders don’t charge origination fees or prepayment penalties.