Get the answers you need to learn more about the Custom Choice Loan from SunTrust. Click on a question to get an answer.
Frequently Asked Questions About the Custom Choice Loan from SunTrust.
LOAN BASICS
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Am I eligible to apply?
The Custom Choice Loan is available to undergraduate and graduate students who are enrolled at least half-time in a Title IV eligible degree program at an eligible school. Students and cosigners, if applicable, must be a U.S. citizen or permanent resident with a Social Security Number.
The student must be the legal age of majority or at least 17 years of age with a Cosigner who is legal age of majority. 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).
The borrower's permanent residence cannot be in Illinois, Iowa, Texas, or Wisconsin. The cosigner's permanent residence cannot be in Illinois.
Many students will need a creditworthy cosigner to qualify. If you are concerned about being approved for a private loan, or you don't have a substantial credit history, we recommend you consider strengthening your chances by adding a qualified cosigner.
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How much can I borrow?
The maximum loan amount is determined by your school's cost of attendance, minus any federal loans, scholarships or grants, up to $65,000.
The aggregate maximum student loan debt allowed is $150,000 (includes all student loans and any unsecured, deferred consumer debt). The minimum loan size is $1,001*.
* The minimum loan amounts are higher in these states: Alaska: $5,001, Colorado: $3,001, New Mexico: $2,501, Oklahoma: $4,501, Rhode Island: $5,001, South Carolina: $3,401. The Custom Choice Loan is not available to students whose permanent residency state is IA, IL, TX or WI, or for cosigners whose permanent residency state is IL.
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Can I use this loan for expenses other than tuition?
Yes. You can use your loan to cover certain education-related expenses included in your cost of attendance as defined by your school, which usually includes expenses like these:
Tuition and school fees
Books and school supplies
Room and board
Transportation costs
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How can a cosigner help me get loan approval?
Most students will need a creditworthy cosigner in order to qualify. Applying with a cosigner who has good credit and positive income can help you satisfy credit criteria and may increase your chances of approval.
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Can my loan cover past due balances?
Yes. Effective June 4, 2011, Custom Choice Loan applications for past due balances will be accepted up to the end of the next month following the academic period for which the applicant was enrolled.
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How quickly can my school get the loan funds?
If you're concerned about timing, you can speed up the process by choosing to eSign your Credit Agreement and by faxing all supporting/required documentation. This includes, at minimum:
A completed, executed Applicant Self-Certification form (required for all private student loans)
Acceptance of the Approval Disclosure (you will receive the Approval Disclosure after certification is received from your school)
If you apply early and documentation is received promptly, your school will likely receive the funds in plenty of time. (If you’re unsure of your school's loan deadlines, contact the financial aid office or check the school website for a published timeline.)
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Where do you send the funds?
The funds are sent directly to the school and are used for your education expenses.
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What's the difference between a U.S. citizen and a permanent resident?
U.S. citizen is a person who:
Was born in the United States, including the lower 48 states, Alaska, Hawaii, Puerto Rico, Guam, and the U.S. Virgin Islands, or
Became a citizen through naturalization, or
Was born outside the United States to U.S. citizen parents under qualifying circumstances (derivative citizenship) and has not renounced U.S. citizenship.
Permanent resident:
Any non-U.S. citizen who lives in the United States under legally recognized and lawfully recorded permanent residence as an immigrant. Also known as a permanent resident alien, lawful permanent resident, resident alien permit holder, or green card holder.
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Do I need to know what school I expect to attend?
Yes, you must be accepted for enrollment or already enrolled at least half-time at in a Title IV eligible program at an eligible school in order to apply.
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Is there a penalty for paying the loan off early?
No, you can pay off your loan ahead of time without any prepayment penalty, regardless of your loan terms. You will be charged only the amount of interest that has accrued up to the day the loan is paid off.
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Are there any out-of-pocket fees for obtaining this loan?
No, there are no out-of-pocket fees.
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What repayment options are available?
The Custom Choice Loan has has four repayment options as described below:
Immediate Repayment: Begin making monthly principal and interest payments approximately 45 days following the last disbursement of funds.
Interest-Only Repayment: Pay only the accrued monthly interest while in school; principal and interest payments begin six months after graduation or dropping below half-time status.
Partial Interest Payment: Pay partial interest of $25 per month while enrolled in school. Option available for loans of $5,000 or more. Note that all accrued, unpaid interest will be capitalized, added to the loan balance, at the time of repayment.
Full Deferment: Defer all principal and interest charges while in school at least half-time; note that interest will accrue during the deferment period and will be capitalized (added to the loan balance) at the time of repayment.
The repayment plan you choose can make a big difference in your loan’s overall cost — so review your options carefully. It’s essential to understand how your rates and payments will be affected by your choices, because once you complete your loan application with those selections, you cannot make any further changes.
Review the details of each repayment option.
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Is there a minimum monthly payment?
Yes. Once the repayment of principal and interest begins, the minimum monthly payment is $50.
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What happens if I default on my loan?
Defaulting on your loan is a serious matter that could have a long-term, adverse effect on your credit score. Custom Choice Loans are in default on the first day after a missed payment, and are usually reported as "late" to consumer credit reporting agencies once they are 30 or more days delinquent.
Bankruptcy usually doesn't cancel your obligation to repay an education loan. If you're about to miss a loan payment, you should contact your servicer immediately to work out a repayment schedule you can meet.
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Why do I need to complete an Applicant (Borrower) Self-Certification Form?
The federal government recently instituted new regulations for private education loans in an effort to provide more transparency to borrowers. The Applicant Self-Certification is one of the new requirements. All private student loan lenders must obtain the Applicant Self-Certification prior to disbursing any private student loan funds. Applicants of the Custom Choice Loan must complete and sign the Self-Certification form and fax it to 800.704.9408. You will need your total cost of attendance and expected financial assistance to complete this portion of the application process.
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What is an Application and Solicitation Disclosure (ASD)?
New regulations governing private education loans require three disclosure documents be provided to borrowers during the application process: an Application and Solicitation Disclosure (ASD), Approval Disclosure, and Final Disclosure. The ASD displays current interest rate ranges, loan cost examples, federal loan alternatives, and other general loan information.
When a student and cosigner, if applicable, apply for the Custom Choice Loan online, the ASD will be presented electronically. Completion of an application is not required in order to view an ASD with current interest rates; however, all applicant(s) must acknowledge that they have reviewed this disclosure before continuing the application process.
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Can I see an ASD without completing an application?
Yes, a current ASD may be viewed by completing minimal applicant and school information at the very beginning of the Custom Choice Loan Web application. Completion of an application is not required in order to view an ASD with current interest rates; however, all applicant(s) must acknowledge that they have reviewed this disclosure before continuing the application process.