Greetings, readers! If you’re a student loan borrower, you know how stressful and overwhelming it can be to manage your loans. Fortunately, SunTrust offers a solution that can make your life a lot easier. With SunTrust student loan refinance, you can lower your monthly payments, reduce your interest rate, and simplify your repayment. In this article, we’ll cover everything you need to know about SunTrust student loan refinance, so you can make an informed decision and take control of your finances.
What is SunTrust Student Loan Refinance?
SunTrust student loan refinance is a program that allows you to combine all your federal and private student loans into one loan with a single monthly payment. With this program, you can potentially lower your interest rate, extend your repayment term, and save money on interest over time. SunTrust offers both fixed and variable interest rates, so you can choose the option that works best for you. Additionally, you can choose from various repayment terms, ranging from 5 to 20 years, depending on your financial goals and budget.
How does it work?
To apply for SunTrust student loan refinance, you’ll need to meet the following requirements:
Eligibility Criteria |
Requirements |
|---|---|
Citizenship |
Must be a U.S. citizen or permanent resident |
Credit Score |
Minimum credit score of 660 |
Income |
Must have a minimum annual income of $24,000 |
Education |
Must have completed a degree program at an eligible institution |
If you meet these requirements, you can apply online or by phone. During the application process, you’ll need to provide information about your loans, income, and credit history. SunTrust will then review your application and determine your eligibility and interest rate. If you’re approved, you’ll need to sign a new loan agreement and start making payments to SunTrust instead of your previous lenders.
What are the benefits?
There are several benefits to using SunTrust student loan refinance, including:
- Lower interest rate: SunTrust offers competitive interest rates that can potentially lower your monthly payments and save you money over time. With a fixed interest rate, your payments will stay the same throughout your repayment term, while a variable interest rate can fluctuate based on market conditions.
- Simplified repayment: Instead of juggling multiple loan payments each month, you’ll only have to make one payment to SunTrust. This can make it easier to manage your finances and avoid missed payments.
- Extended repayment term: With SunTrust, you can choose a repayment term of up to 20 years, which can lower your monthly payments but increase your total interest over time.
- No prepayment penalties: If you want to pay off your loan early, you won’t be penalized with any extra fees or charges.
What are the drawbacks?
While SunTrust student loan refinance has many benefits, there are also some potential drawbacks to consider, including:
- Limited borrower protections: When you refinance your federal loans with SunTrust, you’ll lose access to certain borrower protections, such as income-driven repayment plans and loan forgiveness programs. However, you can still apply for deferment or forbearance if you experience financial hardship.
- Higher total interest: If you choose a longer repayment term, you may end up paying more in interest over time, even if your monthly payments are lower.
- Credit check required: To be eligible for SunTrust student loan refinance, you’ll need to have a minimum credit score of 660. If your credit score is lower, you may not qualify or may have a higher interest rate.
Frequently Asked Questions
1. Can I refinance my federal and private loans together?
Yes, SunTrust allows you to refinance both federal and private student loans into one loan.
2. Will I have one monthly payment or several?
You’ll only have one monthly payment to SunTrust, which will simplify your repayment.
3. What is the minimum loan amount I can refinance?
The minimum loan amount for SunTrust student loan refinance is $5,000.
4. Can I refinance if I didn’t graduate or don’t have a degree?
No, you’ll need to have completed a degree program at an eligible institution to be eligible for SunTrust student loan refinance.
5. How long does the application process take?
The application process typically takes 15-20 minutes to complete online or by phone.
6. What happens to my previous loans when I refinance?
Your previous loans will be paid off by SunTrust, and you’ll start making payments to SunTrust instead.
7. Can I choose a different repayment term after I refinance?
No, you’ll need to choose your repayment term during the application process. However, you can always pay off your loan early without any prepayment penalties.
8. Can I include my spouse’s loans in my application?
No, you can only refinance your own loans, not your spouse’s.
9. What happens if I miss a payment?
You’ll be charged a late fee if you miss a payment. If you continue to miss payments, your loan may go into default, which can have serious consequences for your credit score and financial future.
10. Can I refinance if I have bad credit?
You’ll need to have a minimum credit score of 660 to be eligible for SunTrust student loan refinance. If your credit score is lower, you may not qualify or may have a higher interest rate.
11. Can I refinance with a co-signer?
Yes, you can apply with a co-signer to increase your chances of approval or get a lower interest rate.
12. Can I still qualify for loan forgiveness if I refinance?
No, when you refinance your federal loans with a private lender like SunTrust, you’ll lose access to loan forgiveness programs and other borrower protections.
13. How will refinancing affect my credit score?
Refinancing can temporarily lower your credit score, as it involves a hard credit check and a new loan. However, if you make your payments on time and in full, your credit score should improve over time.
Conclusion
Now that you know all about SunTrust student loan refinance, you can decide if it’s the right option for you. By refinancing your loans with SunTrust, you can simplify your repayment, save money on interest, and potentially lower your monthly payments. Just make sure to weigh the benefits and drawbacks carefully and consider your financial goals and budget. If you’re ready to take the next step and apply, visit SunTrust’s website or call their customer service team for more information.
Thank you for reading, and good luck on your student loan journey!
Disclaimer
This article is for informational purposes only and does not constitute financial advice. Before making any financial decisions, please consult a financial advisor or do your own research. SunTrust student loan refinance is subject to credit approval and may not be available in all states. Terms and conditions apply.