Understanding the Differences between Private Student Loans offered by SunTrust

Use the chart below to help compare the Custom Choice Loan®, Graduate Business School Loan, and the Union Federal® Private Student Loan. SunTrust recommends comparing all aid alternatives including grants, scholarships and federal loans prior to applying for a private student loan.

Loan Product


SunTrust Custom Choice Loan


SunTrust Graduate Business School Loan


Union Federal Private Student Loan funded by SunTrust
Who can apply? Undergraduate and graduate students1 Graduate level business students1 Undergraduate and graduate students1
Interest Rate Type Choice of a fixed or variable interest rate
Annual Percentage Rates Current variable range
4.113% APR to 9.479% APR2

Current fixed range
4.597% APR to 10.328% APR2
Current variable range
3.863% APR to 7.391% APR2

Current fixed range
4.347% APR to 8.167% APR2
Current variable range
4.113% APR to 8.912% APR2

Current fixed range
4.597% APR to 9.769% APR2
Repayment Options3
  • In-School Deferment4
  • Immediate Repayment — make full payments of principal and interest while in school4
  • Partial Interest — pay $25 partial interest payments while in school4
  • Interest-Only Repayment — pay interest only while in school4
Repayment Terms 7, 10, or 15 years5 7 or 10 years5 7, 10, or 15 years5
Loan Limits Min Loan Amount: $1,0016

Annual loan max: $65,0007

Total student loan debt allowed: $150,0008
Min Loan Amount: $1,0016

Annual loan max: $95,0007

Total student loan debt allowed: $175,0008
Min Loan Amount: $1,0016

Annual loan max: $65,0007

Total student loan debt allowed: $150,0008
Citizenship Status U.S. Citizen
or Permanent Resident
U.S. Citizen
or Permanent Resident
U.S. Citizen,
Permanent Resident,
or International Student9
Approved Schools Most four year public or private colleges / universities

Check if your school is eligible
Most graduate level business schools

Check if your school is eligible
Most four year public or private colleges / universities

Check if your school is eligible
Income Requirement Student only Application -
positive income is
required of the student

Cosigned Application - Positive income is required of the cosigner (but not the student)
Student only Application -
positive income is not
required of the student

Cosigned Application - Positive income is required of the cosigner (but not the student)
Student only Application -
positive income is
required of the student

Cosigned Application - Positive income is required of the cosigner (but not the student)
Fees No Application, Origination or Prepayment Fees
In-school Refinance Option Option to refinance your existing private student loans into a new private student loan10learn more about the In-School Refinance Option
Cosigner Release Option Available after 48 on-time payments11, details Available after 48 on-time payments11, details Available after 36 on-time payments11, details
Graduation Reward 1% principal reduction per loan at graduation12
On-time Payment Benefit Not offered Not offered 0.25% interest rate reduction
with 36 consecutive on-time payments13
Automatic Withdrawal Benefit 0.25% interest rate reduction for automatic loan payment withdrawal14

Additional 0.25% interest rate reduction when payments are made automatically from a
SunTrust bank account14
Contact 866.232.3889 866.232.3889 866.513.8445
Product Information
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SunTrust Bank, Member FDIC. © 2017 SunTrust Banks, Inc. SunTrust and Custom Choice Loan are federally registered trademarks of SunTrust Banks, Inc. Certain restrictions and limitations may apply. SunTrust Bank reserves the right to change or discontinue these programs without notice. Availability of all loan programs is subject to approval under the SunTrust credit policy and other criteria and programs may not be available in certain jurisdictions.

Union Federal is a federally registered trademark of The First Marblehead Corporation used by SunTrust Bank under license. The Union Federal Private Student Loan is funded by SunTrust Bank and is not affiliated with any other lender. Certain restrictions and limitations may apply. SunTrust Bank reserves the right to change or discontinue this 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. SunTrust is a federally registered service mark of SunTrust Banks, Inc. The First Marblehead Corporation is not an affiliate of SunTrust Bank.

1 Student must be enrolled at least half-time or more in a degree granting program at an approved school. Student must 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. 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), Mississippi and Puerto Rico (21 years old). Private student loans funded by SunTrust are not available to students or cosigners whose permanent residency state is Iowa or Wisconsin. The Custom Choice Loan and the Graduate Business School Loan are not available to international students.

2 Annual Percentage Rates (APRs) depend upon (1) the student's and cosigner's (if applicable) credit histories, (2) the repayment option and loan term selected, and (3) the requested loan amount and other information provided on the online loan application. If approved, applicants will be notified of the rate qualified for within the stated range. The interest rate will be determined after you apply. APRs are effective for applications received on or after 01/01/17. For fixed rate loans: the fixed rate assigned to a loan will never change except as required by law or if you request and qualify for the ACH reduction benefit(s) and/or, for the Union Federal Private Student Loan, the on-time payment benefit. For variable rate loans: the variable interest rate for each calendar month is calculated by adding the current One-month LIBOR index (captured on the 25th day, or the next business day thereafter, of the month immediately preceding such calendar month and rounded up to the nearest 1/8th of one percent) to a margin determined at approval. The current One-month LIBOR index is 0.875% on 01/01/17. 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 variable interest rate will increase or decrease if the One-month LIBOR index changes.

3 Any applicant who applies for the loan the month of, the month prior to, or the month after their graduation date, as stated on the application or certified by the school, will only be offered the immediate repayment option.

4 Payments may be deferred (a) while a student is enrolled at least half-time at an approved school, and (b) during the 6 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. Any accrued but unpaid interest will be capitalized (added to the unpaid principal loan balance) when repayment of principal and interest begins. There are no prepayment penalties. Partial Interest Payment option of $25 per month is available on loans of $5,000 or more. For payment examples, visit suntrusteducation.com/paymentexamples. For Immediate Repayment loans, the first payment of principal and interest will be due approximately 30-60 calendar days after the final disbursement date. The minimum monthly payment is $50.00. Choosing the immediate repayment option will apply to the new loan in full, including, if applicable, any existing private student loans refinanced into the new loan.

5 For payment examples, visit suntrusteducation.com/paymentexamples.

6 The minimum loan amount varies based on the student's state of permanent residence, as follows: Alaska: $5,001, Colorado: $3,001, New Mexico: $2,501, Oklahoma: $4,901, Rhode Island: $5,001, South Carolina: $3,601.

7 The maximum annual loan amount for the upcoming semester/academic period is determined by your school's cost of attendance, minus other financial aid such as federal student loans, scholarships or grants, up to $65,000 for Custom Choice and Union Federal Private Student Loans, and $95,000 for Graduate Business School Loans.

8 The aggregate maximum student loan debt allowed is $150,000 for the Custom Choice Loan and the Union Federal Private Student loan and $175,000 for the Graduate Business Loan (includes all student loans and certain unsecured consumer debt).

9 International students must apply with a cosigner who is a U.S. Citizen or permanent resident.

10 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 to refinance loans used for, postsecondary Qualified Higher Education 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. Qualified Higher Education Expenses 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. The formal definition for Qualified Higher Education Expenses is included in Section 221 of the Internal Revenue Code (26 U.S.C. § 221) and includes the items in the definition of "cost of attendance" in Section 472 of the Higher Education Act of 1965 (20 U.S.C. § 1087ll), except as otherwise stated in the Internal Revenue Code's definition of Qualified Higher Education Expenses. If you have questions about particular costs or specialized circumstances or need more information, please consult the Internal Revenue's full definition of "cost of attendance".

11 Request for the cosigner to be released can be made after making (1) the first 48 (for Custom Choice Loan or Graduate Business Loan) or 36 (for the Union Federal Private Student Loan) consecutive monthly principal and interest payments on-time (received within 10 calendar days after the due date) or (2) an amount equal to the first 48 (for Custom Choice Loan or Graduate Business Loan) or 36 (for the Union Federal Private Student Loan) consecutive principal and interest payments, provided that (a) such payments are made during the first 48 (for Custom Choice Loan or Graduate Business Loan) or 36 (for the Union Federal Private Student Loan) months of principal and interest repayment and (b) no prior late payments were made. At the time of the request, the student borrower must be a U.S. Citizen or permanent resident alien, meet credit criteria, be enrolled for automatic deduction of monthly payments from a bank account, and have had at least one payment on the loan transferred electronically from a bank account. Cosigner release may not be available for loans in a forbearance status.

12 The 1% principal reduction is based on the net disbursed loan amount which is the total dollar amount of all disbursements made, excluding the dollar amount of any reductions, cancellations, or returns, as applicable. To receive the reward, the benefit 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.

13 Automatically earn a 0.25% interest rate reduction by either making (1) the first 36 consecutive monthly payments on-time (received within 10 calendar days after the due date), or (2) an amount equal to the first 36 payments, provided that, in either case described in (1) or (2), (a) such payments are made during the first 36 months of the repayment term and, (b) no prior late payments were made during the repayment term. The rate reduction will continue even if automated electronic payments after the 36th on-time payment are discontinued.

14 Interest rate reductions offered for automatic payment from a bank account: 0.25% interest rate reduction for ACH payment from any bank account and an extra 0.25% interest rate reduction when ACH payments are made from a SunTrust Bank account. ACH interest rate reduction(s) apply when full payments (including both principal and interest) are automatically drafted from a bank account. Interest rate reduction(s) will remain on the account unless (1) the automatic deduction of payments is stopped (including times during deferment or forbearance) or (2) there are three automatic deductions returned for insufficient funds within the life of the loan. The additional SunTrust Bank account ACH interest rate reduction will be applied after the first automatic payment is successfully deducted from a SunTrust Bank checking, savings or money market account and will be removed for the reasons stated above or if you close your SunTrust Bank account. In the event the benefit(s) is removed, the interest rate stated in the Credit Agreement shall be applied in accordance with the terms of the Credit Agreement.