The Academic Answer Loan is a private education loan. The variable interest rate is calculated by adding the current one-month LIBOR index (which is rounded up to the nearest 1/8th of 1%) to a margin.
The Academic Answer interest rate starts as low as the one-month LIBOR1 + 2.75%, currently a 3.125% interest rate and 3.06% APR2
There are no upfront, origination, or repayment fees for the Academic Answer Loan.
Late fees may be charged if your loan payment is not received within 10 days of the due date. These fees will not exceed 5% of your monthly payment but can be charged every month that your payments are late. A return payment fee of $30 may also be charged for checks or preauthorized payments that are not honored.
There are no fees for prepaying an Academic Answer loan. If you have paid ahead on your loan, interest will continue to accrue on the remaining unpaid principal amount. In addition, there are no fees to access your loan payment history or to send documents via express delivery or fax. There are also no fees associated with granting forbearance for the Academic Answer loan.
Your school's cost of attendance, minus any federal loans, scholarships or grants, is the maximum loan amount per academic year.
Academic Answer loan limits are set by grade level. To determine the maximum loan amount you may be considered for, use our convenient loan limit calculator.
Aggregate maximums (includes all student loans and any unsecured, deferred consumer debt):
Undergraduate: $100,000
Graduate: $150,000
Minimum Loan Size: $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 Academic Answer 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.
The Academic Answer Loan has three repayment options available:
Full Deferral: Defer all principal and interest charges while in school; note that interest will accrue during the deferment period and will be capitalized (added to the loan balance) at the time of repayment
Interest-Only: Pay only the accrued monthly interest while in school
Immediate Repayment: Begin making monthly principal and interest payments immediately
The Academic Answer loan interest rate is based on the one-month LIBOR1 index plus a margin, and your monthly payment may change each month if the LIBOR index changes. The Academic Answer loan requires a minimum monthly payment of $50 and the standard repayment term is 15 years (180 months). Depending upon your loan amount, your repayment term may be shortened to less than 180 months to account for the $50 minimum payment.
The Academic Answer loan may be prepaid at any time without penalty. When Academic Answer monthly loan payments are received, the payments are applied to the amount due in the following order: a) Accrued interest, b) Fees, if applicable, including any late charges, and c) Outstanding principal balance.
Payments can be deferred while enrolled in school at least half time. Interest that accrues during this time will be capitalized (added to the loan balance) at repayment.
Yes, the Academic Answer loan is a school-certified product. When certifying a loan, the financial aid office will verify you are eligible for the loan amount requested. Your funds will be sent directly to the financial aid office to be applied to your account.
If your school does not appear on the Academic Answer loan list, then unfortunately we are not serving your institution at this time. Your school's Financial Aid Office may be able to recommend another private loan lender who offers a loan for your school.
Each Academic Answer Loan is eligible for a 2% principal reduction3 upon graduation. In addition, the interest rate can be reduced by 0.25% when payments are automatically deducted from a personal bank account, and it can be reduced by an additional 0.25% when payments are automatically deducted from a SunTrust Bank deposit account4. To receive the principal reduction benefit, proof of graduation must be submitted within 90 days of graduation. A copy of your diploma or final transcript is acceptable proof.
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 must be a U.S. citizen or permanent resident in an eligible state
The borrower must be attending an eligible and participating school
The borrower must be enrolled at least half-time in a degree program
The borrower's permanent residence is NOT in Illinois, Iowa, Texas, or Wisconsin. The cosigner's permanent residence is NOT in Illinois.
Many borrowers will need a cosigner. 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 creditworthy cosigner.
The federal government instituted regulations for private education loans in an effort to provide more transparency to borrowers, and the Applicant Self-Certification is one of the requirements. All private student loan lenders must obtain the Applicant Self-Certification prior to disbursing any private student loan funds. Applicants of the Academic Answer loan can complete the Self-Certification electronically as part of the online application process. You will need your total cost of attendance and expected financial assistance to complete this portion of the application process.
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 Academic Answer 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.
Yes, a current ASD may be viewed by completing minimal applicant and school information at the very beginning of the Academic Answer 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.
The following information is needed to complete the application. If applying with a cosigner, the cosigner will also need to provide this information.
Name
Social Security number
Date of birth
Permanent address
Monthly rent or house payment
Home phone number
Occupation
Employer information
Gross annual income
References: name, address, and phone numbers for two people who do not live with the borrower or cosigner
Students must also provide total cost of attendance and estimated financial assistance.
The student's cost of attendance (COA) and estimated financial assistance (EFA) are used to complete the Applicant Self-Certification during the online application process for the Academic Answer loan. This certification is required for all private student loans, regardless of the lender you choose. If you do not have this information available, you may need to contact your school to obtain your COA and EFA before starting the Academic Answer application. The Applicant Self-Certification is not required for cosigners.
If you fail to make any of your monthly payments in full, according to the due date on your monthly billing statement, your loan will be considered in default. Your interest rate may continue to change monthly, as it did prior to default.
A borrower and cosigner, if applicable, must accept the Approval Disclosure by phone, fax, or online within 30 calendar days of receipt. If no action is taken within the 30 calendar day timeframe, the loan is automatically cancelled. If the borrower accepts the Approval Disclosure, a Final Disclosure will be presented to the borrower and cosigner, if applicable. Either the borrower or cosigner has the right to cancel (e.g.rescind) the loan within three business days of receiving the Final Disclosure. Loan cancellations must be submitted online or in writing by fax.
Loan cancellation is possible after your funds have been disbursed. Either the school, the student borrower, or the cosigner must return the funds within 30 days of the disbursement date to cancel the loan and avoid any interest or other charges. If you send a written cancellation notice but fail to return your loan proceeds within 30 days, your loan will remain in effect and you will be in default.
Frequently Asked Questions About Private Loans in General
Unlike Federal Student Loans, private student loans are specialized education loans based on your credit history and income. Lenders typically give better terms for better credit history. Many lenders also allow cosigners which can help you qualify for better rates.
The student must apply for the loan. Since many students do not have extensive credit history, consider applying with a creditworthy cosigner to increase your chances of possibly receiving better rates and terms.
You can typically choose to begin repaying your loan immediately, make interest only payments while you are in school, or defer all of your payments while you are in school. Any interest you defer will be capitalized (added to your balance) when you begin making your loan payments.
Interest rates and fees can vary significantly between lenders. Many lenders also offer borrower benefits that can reduce the principal or interest on a private loan. Be sure to look carefully at the terms and conditions when applying for a loan.
1LIBOR stands for London Interbank Offered Rate. The One-month LIBOR is the Current Index, as published in the "Money Rates" section of the Wall Street Journal (Eastern Edition). Your variable interest rate and Annual Percentage Rate (APR) may be higher depending upon your or your cosigner's credit history, and will increase or decrease if the one-month LIBOR index changes. Your variable interest rate is calculated by adding the current one-month LIBOR index (captured on the 25th day of each month, 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 your margin. The current one-month LIBOR index was 0.375% on 02/01/12.
2This APR example assumes a $10,000 cosigned loan disbursed over two transactions with a deferment period of 45 months upon initial disbursement and a six month grace period upon graduation, a monthly principal and interest payment of $78.55 (there is a minimum monthly payment of $50), a 15 year repayment term (180 months), and a 2.75% margin. Margins can range from 2.75% to 9.74% depending if the loan is co-signed and upon your or your cosigner's credit history
3The 2% principal reduction is based on the original principal amount. The Graduation benefit also requires no more than one late payment (any payment made more than ten days after due date.)
4ACH discount(s) only apply when full payments (including both principal and interest) are automatically drafted from a bank account. Discount(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 a rolling 12-month period (for Academic Answer). The additional SunTrust ACH reward is available for loans first disbursed on or after 6/1/11 and will be applied after the first automatic payment is successfully deducted from a SunTrust Bank checking, savings or money market account.
