the custom choice loan from suntrust · the online application process for the custom choice loan...

The Custom Choice Loan®

from SunTrust Private Student Loan Proposal Academic year 2019-2020 The State University of New York at Fredonia March 14, 2019

March 14, 2019 Mark Zaffalon Office of Financial Aid SUNY at Fredonia 209 Maytum Hall Fredonia, NY 14063 Dear Mark, Thank you for providing SunTrust Bank with the opportunity to respond to The State University of New York at 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 borrowers 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. SunTrust Custom Choice Loan 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) 316-0763 [email protected] Good news! Interest rates are being discounted by 0.50% for Custom Choice private student loan applications! This promotion is for new applications submitted between June 1, 2019 through August 31, 2019.

SunTrust Bank, Member FDIC. ©2019 SunTrust Banks, Inc. SUNTRUST, the SunTrust logo and Custom Choice Loan are trademarks of SunTrust Banks, Inc. All rights reserved.

CONFIDENTIAL & PROPRIETARY

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Lender, Originator & Servicer SunTrust Bank 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 Bank on their preferred lender lists. SunTrust Bank 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 www.suntrust.com/loans/student-loans.com.

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.

http://www.suntrust.com/loans/student-loans.com

http://www.suntrust.com/loans/student-loans.com



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Custom Choice Loan Overview

Product Name Custom Choice Loan

Lender Name SunTrust Bank

Lender Code 911304

Guarantor Code Q14

NCHELP Servicer Code Q12

School Contact Information

(866) 296-3637 Monday – Friday 9:00am-6:00pm ET [email protected]

Borrower Contact Information

(866) 232-3889 Monday – Friday 9:00am-8:00pm ET

Application Link www.suntrust.com/studentloans

Program Manager Cognition Financial

Loan Servicer

American Education Services (AES) Borrower Information (800) 233-0557 School Information (800) 443-0646 aessuccess.org

School Certification ELM, ScholarNet, SchoolCertify.com or Fax

mailto:[email protected]


http://www.suntrust.com/studentloans


http://www.aessuccess.org/




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Borrower 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 review1

• 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.



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• 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 (www.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.

http://www.suntrust.com/studentloans.com

http://www.suntrust.com/studentloans.com





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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, 2018-December 31, 2018 and uses SunTrust Custom Choice national school channel, cosigned volume.



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Custom Choice Loan Details

Eligibility

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 months after the 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.2

• The Custom Choice Loan is not available to international students or students/cosigners who permanently reside in Iowa or Wisconsin.

Borrowing Amounts

• Minimum Loan Amount: $1,0013 • Maximum Loan Amount: lesser of the cost of attendance less aid or $65,000

with an annual maximum of $65,0003 • Aggregate Student Loan Limit (total amount of student loan debt

allowable): $150,0003

Credit Criteria

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 creditworthy cosigner may increase the likelihood of approval. The student borrower 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.4

Rates

Interest Rates • Current variable APR range: 4.251% APR to 13.250% APR5

• Current fixed APR range: 5.351% APR to 14.051% APR5 Variable interest rates are based on the One-month London Interbank Offered Rate (LIBOR) index plus a margin, adjusted monthly. The One-month LIBOR index is 2.500% as of March 1, 2019.5

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 Required to Apply

There are no application, origination or prepayment fees for either the fixed or variable rate loan options.



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Borrower Benefits

Interest Rate Reduction for Auto Pay6 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 bank

account.

Graduation Reward Upon graduation with a bachelor’s degree or higher, student borrowers can request a 2% principal reduction to the net disbursement amount of the loan. Proof of graduation is required.7

Cosigner Release Cosigner release option is available to borrowers after making 36 consecutive on-time payments.8

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.9

Repayment Terms

Choice of Repayment Terms: 7, 10, or 15-year options10

Repayment Options

Choice of Repayment Options: • Full Deferment11 • Interest Only 11 • Partial Interest 11 • Immediate Repayment11

Grace Period The grace period is typically six months.12

In-School Refinance Option

The Custom Choice Loan offers the ability to refinance existing private student loans13 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. This feature gives the student the flexibility to select a new repayment term and 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.

http://www.suntrust.com/loans/student-loans/private/inschool-refinance




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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 Deferment11 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 Repayment11 or Partial Interest Repayment11 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 year10 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 is 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.



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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 [email protected]. 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.





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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 Bank 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



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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.

http://www.youcandealwithit.com/

http://www.youcandealwithit.com/



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• 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.



http://www.suntrust.com/loans/student-loans/private/custom-choice-loan

http://www.suntrust.com/loans/student-loans/private/custom-choice-loan

http://www.suntrust.com/loans/student-loans/pay-for-college/ways-to-pay

http://www.suntrust.com/loans/student-loans/pay-for-college/ways-to-pay

https://www.suntrust.com/loans/student-loans/pay-for-college/ways-to-pay/scholarships

https://www.suntrust.com/loans/student-loans/pay-for-college/ways-to-pay/scholarships

https://www.suntrust.com/loans/student-loans/private/custom-choice-loan

https://www.suntrust.com/loans/student-loans/private/custom-choice-loan

https://www.suntrust.com/loans/student-loans/help-tools/college-loan-calculator

https://www.suntrust.com/loans/student-loans/help-tools/college-loan-calculator

https://www.suntrust.com/loans/student-loans/help-tools/faqs

https://www.suntrust.com/loans/student-loans/help-tools/faqs

https://www.suntrust.com/loans/student-loans/help-tools/financial-aid-glossary

https://www.suntrust.com/loans/student-loans/help-tools/financial-aid-glossary

https://www.suntrust.com/loans/student-loans/help-tools/money-management

https://www.suntrust.com/loans/student-loans/help-tools/money-management

https://www.suntrust.com/loans/student-loans/pay-for-college/ways-to-pay/financial-aid




https://www.suntrust.com/loans/student-loans/pay-for-college/students/nursing

https://www.suntrust.com/loans/student-loans/pay-for-college/students/nursing

https://www.suntrust.com/loans/student-loans/pay-for-college/students/business-school

https://www.suntrust.com/loans/student-loans/pay-for-college/students/business-school



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The SunTrust Off To College Scholarship Sweepstakes SunTrust is on a mission to help reduce financial stress. Students can enter the 14th annual SunTrust Off to College Scholarship Sweepstakes for a chance to help cover educational expenses. The sweepstakes offers high school seniors and college undergraduates the opportunity to win a scholarship. Two $500 scholarship winners will be randomly chosen every two weeks beginning on or about October 29, 2018, until May 13, 2019. 30 total winners will be chosen at random during this time period. Visit offtocollegesweepstakes.suntrust.com/ for more details.



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Disclosures The lender for this program is SunTrust Bank. SunTrust Bank, Member FDIC. © 2019 SunTrust Banks, Inc. SUNTRUST, the SunTrust logo and Custom Choice Loan are trademarks of SunTrust Banks, Inc. All rights reserved. SunTrust Bank 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 Banks, Inc. 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 SunTrust Bank. 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 Once an application is submitted, the information provided on the application is reviewed, and information obtained from the student’s credit report (and any cosigner’s credit report). If this credit review is passed, and before a final loan decision is made, certain documentation is requested (e.g., a signed credit agreement, information to verify your application information, and, if applicable, payoff information for loans you wish to refinance), and the school must certify enrollment and loan amount for the upcoming academic year/semester prior to disbursement. 2 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). 3 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: $5,101, 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). 4 The results of your credit review are valid for up to 180 calendar days from the date on which SunTrust obtained your credit report. If your loan has not been scheduled for disbursement within this time period, your application will be withdrawn.



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5 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 loan 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 effective for applications received on or after 3/1/19. The low APR assumes a 7-year $10,000 loan, with two-disbursements and no deferment. The high APR assumes a 15-year $10,000 loan with two disbursements. 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 2.500% on 3/1/2019. 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 the borrower or cosigner requests and qualifies for the auto pay discount. 6 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 for auto pay from any bank account and an extra 0.25% interest rate reduction for auto pay from a SunTrust Bank checking, savings, or money market account. 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 for 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 the borrower’s 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. 7 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 borrower receives more than one degree. 8 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. 9 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.



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10 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 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 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 a 10-year repayment term (120 months) and an 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 a 15-year repayment term (180 months) and a 9.423% APR would result in a monthly principal and interest payment of $136.90. 11 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. 12 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. 13 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 in a past due status. 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, and generally include tuition and fees, room and board, costs for rental or purchase of any equipment, materials, or supplies required of all students in the same course of study, an allowance for books, supplies, transportation, and miscellaneous personal expenses, and a reasonable allowance for the documented rental or purchase of a personal computer. Visit suntrust.com/loans/student-loans/private/inschool-refinance to learn more about the In-School Refinance Option.



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