Lana Oconnell
SunTrust offers federal and private student loan programs, including the Custom Choice Loan, Start Student Loan, Union Federal Private Student Loan, and Graduate Business School Loan. Each of these loans has different features, such as a 2% reduction in the principal amount upon degree completion or a 0.25% interest rate reduction after three years of on-time payments. While SunTrust student loans are not typically eligible for forgiveness, there may be options for relief, such as bankruptcy or refinancing through a new private lender. Additionally, Truist offers the Truist Student Debt Program, which allows eligible teammates to convert vacation days into contributions toward their student debt.
| Characteristics | Values |
|---|---|
| Loan types | Federal and private |
| Loan servicing | American Education Services (AES) |
| Loan options | Custom Choice Loan, Start Student Loan, Union Federal Private Student Loan, Graduate Business School Loan |
| Forgiveness | Not eligible for most SunTrust student loans |
| Bankruptcy | Won't automatically wipe out student loans, requires an additional lawsuit |
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What You'll Learn
Loan forgiveness and repayment
As of May 2020, SunTrust no longer offers private student loans. However, if you are an existing borrower, your loan will continue to be serviced by American Education Services (AES), and your repayment schedule will remain the same.
Most SunTrust student loans are not eligible for forgiveness as they are private student loans, and the U.S. Department of Education's forgiveness programs are primarily for federal student loans. However, if you borrowed Stafford Subsidized or Unsubsidized Loans through SunTrust under the Federal Family Education Loan Program (FFEL), your loans may qualify for forgiveness under certain programs, such as President Biden's debt cancellation plan, the Public Service Loan Forgiveness program, or income-based repayment plans.
If you are experiencing financial hardship, you can contact AES to discuss alternative repayment options. You may be eligible to make interest-only payments for 12 to 24 months or apply for a temporary deferment. Additionally, if you are a member of the military, you may be eligible for a deferment of up to 36 months if you are unable to repay the loan while on active duty.
In the unfortunate event of the student borrower's death or permanent disability, SunTrust will forgive the remaining balance of the loan with proper documentation, and the cosigner will not be responsible for repayment.
If you are considering refinancing your SunTrust student loan, you can explore options with different private lenders to secure a lower interest rate or better repayment terms. However, if you have multiple student loan balances, you may want to consider consolidating them to reduce the number of monthly payments and potentially lower your overall cost. Keep in mind that refinancing federal loans with private loans may result in losing access to federal benefits, including potential loan forgiveness programs.
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Bankruptcy as a last resort
Bankruptcy can be a potential lifeline to escape SunTrust student loan debt. However, it is considered a last resort due to the complexity of discharging these debts and the long-term consequences that borrowers should carefully consider.
Firstly, bankruptcy won't automatically wipe out your student loans. To discharge student loan debt in bankruptcy, you must file an additional lawsuit, known as an adversary proceeding, and prove that paying back your student loan would cause an "undue hardship". This means demonstrating that you are unable to repay your loans while maintaining a minimal standard of living, that this financial difficulty will likely continue, and that you have made a good-faith effort to repay your loans in the past.
The U.S. Department of Justice (DOJ) and the court consider several factors when deciding whether you have an undue hardship. These include your future ability to pay, your past efforts to repay the loan, and your contact with the Department of Education or loan servicer regarding payment options. Even if the DOJ does not recommend discharging your loans, the judge can still find that you have an undue hardship and discharge your loans.
If you borrowed Stafford Subsidized or Unsubsidized Loans through SunTrust under the Federal Family Education Loan Program (FFEL), you may be eligible for loan forgiveness programs. However, most SunTrust student loans are private loans, which are not eligible for forgiveness through the U.S. Department of Education's programs.
Before considering bankruptcy, you may want to explore other options for managing your SunTrust student loan debt. These could include consolidating or refinancing your loans to reduce your monthly payments and interest rates. Additionally, if you work for a government agency or nonprofit, you may be eligible for the Public Service Loan Forgiveness program. Alternatively, if you are in a lower-paying field, you could have certain federal student loans forgiven after making payments for 20+ years under an income-based repayment (IBR) plan.
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Loan servicing transferred to AES
SunTrust offers federal and private loan programs to help cover the costs of college education. However, SunTrust student loans are generally not eligible for forgiveness as they are mostly private student loans, and the U.S. Department of Education's forgiveness programs are primarily for federal student loans.
Loan servicing for SunTrust private loan borrowers has been transferred to American Education Services (AES). This change does not affect your repayment schedule or other loan terms. You will receive a welcome letter from AES once your loan account has been fully loaded onto their system.
Following the transfer, you will need to direct payments and communications for your Federal Loans to AES. You will make payments directly to AES, and they will inform you when your payments are due. Please wait until you receive communication from AES before sending your payments.
As a borrower, you will be assigned a new account number by AES once your loans are loaded onto their system. This information will be included in the first communication they send to you.
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Immediate repayment
SunTrust, now Truist, no longer offers SunTrust-funded student loans. However, existing borrowers will still have their loans serviced by American Education Services.
If you are finding it difficult to meet your monthly payments, you could consider refinancing with a different private lender for a lower interest rate or better repayment terms. However, keep in mind that if you refinance federal loans with private loans, you will give up access to federal benefits, including repayment plans for low-income borrowers and loan forgiveness programs.
Additionally, if you are experiencing problems making payments, you may be eligible for up to 36 months of interest-only payments. This must be requested by the borrower.
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Consolidating with other student loans
SunTrust no longer offers private student loans, having ended its loan program in 2020. However, if you are an existing borrower, you can still pay your SunTrust student loan. The loan servicing has been transferred to American Education Services (AES), and your repayment schedule and other loan terms should remain the same.
If you have multiple student loan balances, you may want to consider consolidating them. This can potentially reduce the number of monthly payments you have to keep up with and lower the overall cost of your debt. However, it is important to note that the federal government does not offer consolidation loans for SunTrust's private student loans. Nevertheless, you can still consolidate or bundle them with other student loans by refinancing through a new private lender.
When consolidating your SunTrust student loans with other student loans, you have the option to refinance for a better interest rate. A lower interest rate can help you save money on interest payments and move up your payoff date. Additionally, consolidating your loans can free up your cash flow.
Before consolidating your SunTrust student loans with other student loans, it is important to consider the potential drawbacks. Firstly, if you consolidate any federal student loans with private loans, you may give up access to federal benefits, including repayment plans for low-income borrowers and loan forgiveness programs. Federal loans typically have lower interest rates than private loans, so consolidating them with private loans may result in a higher overall interest rate.
It is also important to carefully evaluate your refinancing options and choose a reputable lender that can offer you lower interest rates or better repayment terms. Remember that shorter repayment terms usually result in lower interest rates, so opting for a shorter loan term can help you save money in the long run.
Finally, consider the different payoff strategies, such as the snowball or avalanche methods, to help you effectively manage your consolidated student loans.
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Frequently asked questions
SunTrust offers federal and private loan programs. If you are struggling to pay off your loan, you might want to consider bankruptcy as a potential escape from your debt. Alternatively, you could consolidate or bundle your SunTrust private student loans by refinancing through a new private lender.
Unfortunately, most SunTrust student loans are not eligible for forgiveness as they are private student loans. However, if you borrowed Stafford Subsidized or Unsubsidized Loans through SunTrust under the Federal Family Education Loan Program (FFEL), you may be eligible for forgiveness.
SunTrust offers the Custom Choice Loan, which is a private student loan for both undergraduate and graduate students, offering a 2% reduction in the principal amount upon degree completion. They also offer the Start Student Loan, which kept interest from accruing for six months after disbursement.
