Ibrahim Gardner
SunTrust offers federal and private loan programs to help cover the costs of college education. SunTrust student loans have now been transferred to American Education Services (AES) for loan servicing. Borrowers can choose from a range of private student loan options, including the Custom Choice Loan, Start Student Loan, Union Federal Private Student Loan, and Graduate Business School Loan. SunTrust student loans can be refinanced through a new private lender to achieve lower monthly payments and potentially release a cosigner.
| Characteristics | Values |
|---|---|
| Loan Servicing | American Education Services (AES) |
| Repayment Options | Immediate Repayment, Custom Choice Loan, Start Student Loan, Union Federal Private Student Loan, Graduate Business School Loan |
| Refinancing Options | Online marketplace platforms like Credible |
| Deferment/Forbearance | Temporary solutions offered by AES or SunTrust |
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What You'll Learn
SunTrust student loan refinancing options
SunTrust offers federal and private student loan programs. However, SunTrust Bank does not provide refinancing options. If you are looking to refinance your SunTrust student loans, you will need to explore refinancing with a different private lender for a lower interest rate or better repayment terms.
Platforms like Credible allow you to shop with multiple lenders simultaneously. With interest rates projected to rise, a loan with a fixed rate could be the best option. While a variable rate may seem appealing with lower rates today, it could increase soon as the Federal Reserve hikes the rates.
If you have multiple student loan balances, you may want to consider consolidating. You can potentially refinance for a better interest rate and reduce the number of monthly payments you have to keep up with. For some, consolidating can lower the cost of debt, move up the payoff date, and free up cash flow. However, be mindful when consolidating federal loans with private loans as this can result in forfeiting federal benefits.
If you are struggling to meet your monthly payments, you could request that AES or SunTrust grant you a deferment, forbearance, or lower your interest rate. These are temporary solutions, so it is important to consider other options as well. Bankruptcy can be a way to reduce or eliminate your SunTrust student loan debt, but it is a complex process that requires the right expertise.
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Immediate repayment of SunTrust student loans
SunTrust, now Truist, no longer offers new private student loans as of May 30, 2020, following its merger with BB&T. Current borrowers will continue to have their loans serviced.
If you are a former SunTrust student loan borrower, you can explore refinancing with a different private lender for a lower interest rate or better repayment terms. One option is to consolidate or bundle SunTrust loans with other student loans by refinancing through a new private lender. However, the federal government does not offer consolidation loans for SunTrust's private student loans.
If you are specifically looking to immediately start repaying your SunTrust student loan, you can choose to begin making payments right after the loan is disbursed. This option is available for the following SunTrust loans:
- Custom Choice Loan
- Union Federal Private Student Loan
- Graduate Business School Loan
- Start Student Loan
The immediate repayment option is typically the most cost-effective option, as you pay down the principal in addition to interest while still in school. While it does mean higher monthly payments, if you can afford it, it is advisable to choose the shortest loan term to lower the overall interest paid.
If you are struggling with your monthly payments, you could request that SunTrust or AES grant you a deferment, forbearance, or lower your interest rate. However, these are temporary solutions, and you may want to consider other options such as refinancing or loan settlements.
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Temporary relief options for SunTrust student loans
SunTrust student loans are private student loans, and as such, most of them are not eligible for forgiveness. However, if you borrowed Stafford Subsidized or Unsubsidized Loans through SunTrust under the Federal Family Education Loan Program (FFEL), these particular loans qualify for several forgiveness programs, such as President Biden's debt cancellation plan, the Public Service Loan Forgiveness, and income-based repayment plan forgiveness.
If you are finding it difficult to meet your monthly payments, you have a few temporary relief options with SunTrust student loans:
- Refinancing: You can refinance your SunTrust student loans with a different private lender for a lower interest rate or better repayment terms. Platforms like Credible allow you to shop with multiple lenders simultaneously. However, to release your cosigner, you will need a solid credit score and sufficient income to handle not just your new student loan payments but also any other debts you might have.
- Deferment or Forbearance: You could request that American Education Services (AES) or SunTrust grant you a deferment or forbearance. However, remember that these are temporary solutions, and once they run out, you will need to resume your loan payments.
- Lower Interest Rate: You could also request that AES or SunTrust lower your interest rate.
- Negotiate a Settlement: If all else fails, you could stop making monthly payments and let your loan default. While this is not a guaranteed option and carries risks, it could be an opportunity to negotiate a settlement for less than the current loan balance.
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SunTrust private student loan options
SunTrust offers both federal and private loan programs to help cover the rising costs of college education. Here are some of the private student loan options offered by SunTrust:
Custom Choice Loan
This loan is available to both undergraduate and graduate students. It offers a 2% reduction in the principal amount upon degree completion.
Start Student Loan
This private student loan does not accrue interest for the first six months after disbursement.
Union Federal Private Student Loan
The Union Federal Private Student Loan is designed for international students. It rewards borrowers with a 0.25% interest rate reduction after three years of on-time payments.
Graduate Business School Loan
This loan is aimed at students pursuing an MBA or other graduate business degrees.
Academic Answers Loan
SunTrust encourages undergraduate students taking out this loan to have a cosigner to help keep interest rates low, and some loans may even require it. Students in Illinois, Iowa, Texas, Washington, and Wisconsin are not eligible for Academic Answers Loans.
Refinancing
Refinancing your SunTrust student loans could lead to lower monthly payments and the possibility of removing your cosigner. However, SunTrust Bank does not offer refinancing options, so you will need to consider an online marketplace such as Credible, which allows you to shop with multiple lenders simultaneously.
It is important to note that SunTrust private student loans have limited repayment options and terms. One option is immediate repayment, where you make full principal and interest payments as soon as your loan is disbursed. This is typically the most cost-effective option, as you pay down the principal and interest while still in school. Shorter repayment terms usually mean lower interest rates, and the quicker you clear your loan, the less you will pay in interest overall.
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SunTrust student loan repayment terms
SunTrust Education, the educational branch of SunTrust, offers federal and private loans for college students. SunTrust declared in May 2020 that it was ending its private student loan program, transferring loan servicing to American Education Services (AES). However, existing borrowers were assured that their repayment schedules and loan terms would remain unaffected.
SunTrust student loans offer plenty of repayment options. You can choose to pay back what you owe in seven, ten, or fifteen years. You can start making payments immediately, or defer them until after you graduate. The longer the repayment term, the lower the monthly payments. However, shorter repayment terms usually equate to lower interest rates, meaning you'll pay less in interest overall. Therefore, if you can afford it, it's generally recommended to choose the shortest loan term available.
SunTrust also offers a range of incentives for students with private loans, including a $300 principal reduction if you graduate. You can also save 0.25% on your interest rate by signing up for autopayment. Additionally, after making 36 consecutive, on-time payments, you can request to release your co-signer from the loan.
If you're struggling to keep up with your SunTrust loan payments, there are a few options for relief. You could request that AES or SunTrust grant you a deferment, forbearance, or lower your interest rate. However, these are only temporary solutions. Another option is to negotiate a settlement for less than the current loan balance, but this carries risks, including debt collectors and the potential loss of your co-signer. Bankruptcy can also be a potential escape route from student loan debt, but it won't automatically wipe out your loans, and you'll need to prove that repayment would cause "undue hardship".
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Frequently asked questions
SunTrust student loan servicing has been transferred to American Education Services (AES).
You could request that AES or SunTrust grant you a deferment, forbearance, or lower your interest rate.
Yes, you can refinance your SunTrust student loan through a new private lender, as SunTrust Bank doesn't offer refinancing options.
Yes, you can consolidate or bundle your SunTrust student loan with other student loans by refinancing through a new private lender.
SunTrust offers limited repayment options and terms. One option is to start full principal and interest payments as soon as your loan is disbursed.
