SunTrust Student Loans: What to Know About This Discontinued Loan Program

If you’ve maxed out your federal student loan options and still need funds for school, private student loans could help. In previous years, SunTrust offered competitive interest rates and unique borrower perks for undergraduates and graduates. Unfortunately, this loan program is no longer available.

Before its merger with BB&T to become Truist, SunTrust offered three private student loan products: Custom Choice Student Loan, Union Federal Private Student Loan and the Graduate Business School Loan. However, its private student loan program was discontinued in May 2020.

If you have a student loan with SunTrust, let's explore what this transition means for you, including what alternative loans are available through refinancing.

What happened to SunTrust student loans?

SunTrust Banks and BB&T Corporation completed their merger in December 2019, creating Truist. Since then, rebranding and integration efforts have taken place slowly over time to transition customers to the Truist brand.

On May 31, 2020, SunTrust's private student loan program was discontinued, meaning borrowers can no longer apply for student loans or student loan refinancing. However, those with existing SunTrust student loans have their loans serviced by American Education Services (AES).

Note that Truist doesn't offer student loan products. However, it provides many banking products, including physician mortgages.

SunTrust student loans review: What was offered?

The information below summarizes the key information you need to know about all three of SunTrust’s student loan products:

• Loan types: Custom Choice, Union Federal, Graduate Business School
• Interest rates: Fixed and variable
• Repayment terms: 7, 10 or 15 years
• Payment flexibility: Immediate repayment, in-school deferment, partial-interest payments ($25/month) and interest-only payments
• Discounts: 0.50% interest rate reduction for automatic payments from a SunTrust bank account (only 0.25% reduction for other brands)
• Other perks: Graduation reward of a 1% to 2% deduction in principal, depending on type of loan

Additionally, SunTrust was an excellent option for international students until the program ended in 2020.

Alternatives to SunTrust student loans

Since SunTrust (now Truist) doesn't offer private student loans anymore, you might still need additional funding if you're in school. Consider one of these alternatives to help pay for school:

• Federal student loans. Federal loans typically have lower interest rates and better repayment options. For example, you can choose from several income-driven repayment (IDR) plans that cap your required monthly at 10% to 20% of your discretionary income. They're also easier to qualify for.
• Other private student loans. Compare the top private student loan lenders to find the best interest rate and loan terms. Depending on your credit score and income history, you might need a creditworthy cosigner.

Sallie Mae and Earnest offer competitive rates and a great user experience. International students should check out Citizens.

However, we recommend using private student loans as a last resort in most cases.

Federal loans come with stronger borrower protections through IDR plans, forbearance and deferment options. But they also give you access to student loan forgiveness programs, such as Public Service Loan Forgiveness (PSLF).

Refinancing your SunTrust student loans

If you still have a private student loan that originated with SunTrust, you might be able to lower your interest rate and save money by refinancing. You'll also get to choose who will service your loan if you aren't happy with your current customer service interactions with AES.

Refinancing with another private lender could pay off if your credit score or income has increased since you first took out your SunTrust loans. You'll likely qualify for better offers since lenders can consider you less of a risk. Plus, you could score a huge cash-back bonus depending on your loan amount.

As a general rule of thumb, you should refinance your private student loans any time you can find a lower interest rate. This strategy could save you thousands or more over the life of your loans. Therefore, we recommend shopping around for current refinancing offers at least every six months or whenever you see rates drop overall.

But you might also refinance if you want a lower (or higher) monthly payment, depending on your repayment goals.

Not sure where to start with refinancing? Check out our guide to the best student loan refinance companies in 2022.