April 13, Melissa Miller Office of Financial Aid SUNY Buffalo State 1300 Elmwood Avenue Buffalo, NY Dear Melissa,

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1 April 13, 2014 Melissa Miller Office of Financial Aid SUNY Buffalo State 1300 Elmwood Avenue Buffalo, NY Dear Melissa, Thank you for providing SunTrust Bank with the opportunity to respond to SUNY Buffalo State College s Request for Information for private student loan lenders. SunTrust, in partnership with The First Marblehead Corporation, has designed an innovative private student loan program that offers your families the ability to customize their loan options. Our sophisticated loan platform enables families to select between a fixed and a variable interest rate in the same application session. In addition, by selecting from multiple repayment term and options, families can determine the pricing and program that best meets their individual financing needs. SunTrust Custom Choice Loan is truly a leader in the private student loan marketplace. Thank you for your consideration. Please contact me if you have any questions regarding this proposal. Sincerely, X Adedayo Lawal Relationship Manager The First Marblehead Corporation (404) ALawal@fmd.com

2 Working Together For Students Custom Choice Loan Private Student Loan Proposal Academic year SUNY Buffalo State College April 13, 2015

3 SUNY Buffalo State (002842) Preferred Lender Arrangement RFI Questions March 10, Name of loan program/product SunTrust Bank, Custom Choice Loan 2. Years in student loan market Undergraduate Student Loan Product SunTrust Education Loans is a leading provider of private education loans. SunTrust Bank has been an education lender for nearly three generations and a provider of private loans since Fixed and/or Variable The student may choose a fixed or variable interest rate upon passing the initial credit review during the online application session. Rate options offered will depend on the student s and cosigner s (if applicable) credit histories, the repayment option and loan term selected, the requested loan amount, and information provided on the online loan application. 4. Interest rate spread for both fixed and variable (if applicable) Variable interest rates are based on the One Month London Interbank Offered Rate (LIBOR) index plus a margin, adjusted monthly. The 1 month LIBOR index is 0.250% as of April 1, Variable interest rates currently range from 1 month LIBOR % to 1 month LIBOR % (APRs currently range from 3.241% 1 to 8.672% 2 ). Fixed rate pricing currently ranges from 4.75% to 11.25% (APRs currently range from 4.751% 3 to % 4 ). 5. Eligibility criteria a. SAP required? No b. ½ time enrollment required? Yes c. Must the student be matriculated? Yes d. Eligible if in certificate program? No 2015 SunTrust Banks, Inc. CONFIDENTIAL & PROPRIETARY 1

4 e. Past due balances? If so, what are the criteria? Yes Applications will be accepted for up to one month following the end of the applicant s academic period. For example, when a loan period ends on May 15, the borrower has until June 30 to submit an application for the previous academic period. 6. Minimum loan amount The minimum loan amount is $1,001, subject to certain state exceptions Describe any and all fees associated with your loan product if applicable There are no origination fees for either the fixed or variable interest rate loan options. A late fee (not to exceed 5% of the monthly payment) may be assessed in any month when the scheduled payment is received more than 10 days after the due date. 8. Back end benefits ACH Reduction Borrowers can reduce their interest rate by up to 0.50% for auto debit. 7 Interest rate reduction of 0.25% for borrowers who elect to have monthly principal and interest payments transferred electronically from a bank account. Additional 0.25% interest rate reduction for auto debit of monthly payments from a SunTrust deposit account. Graduation Reward Upon graduation with a bachelor s degree or higher, student borrowers are eligible to request a 1%principal reduction to the net disbursement amount of the loan. Proof of graduation must be submitted to the loan servicer within 90 days after graduation, and a certified copy of the diploma is acceptable. To receive the reward, no more than one late payment (any payment received more than ten days after the due date) is allowed prior to the graduation reward request. Loan Forgiveness In the event of the primary borrower s death or permanent disability, the loan will be forgiven. Proper documentation is required SunTrust Banks, Inc. CONFIDENTIAL & PROPRIETARY 2

5 9. Co signer release? If so, what are the terms? Cosigner release is available to borrowers who have made on time payments (within 10 days of due date) for the first 48 consecutive principal and interest payments. The applicant must pass applicable underwriting criteria and other requirements as set forth in the Credit Agreement at the time of the request Available repayment options Fully Deferred Repayment Both principal and interest can be deferred until the earlier of six months after the borrower graduates or ceases to be enrolled at least half time in a Title IV eligible school, but no more than 66 months from the first disbursement date. Interest Only Repayment Interest payments begin days after the first disbursement. Borrowers may defer principal payments for no more than 66 months from the date of the first disbursement if enrolled at least half time in a Title IV eligible program. Repayment of principal and interest begins 180 days after graduation or if enrollment falls below half time in a Title IV eligible school, up to a maximum of 66 months from the first disbursement date. Partial Interest Repayment (Student Starter) 1 5 Borrowers develop good repayment habits by starting with a small, fixed monthly partial interest payment of $25 per loan while they are in school. The fixed $25 per month interest payments begin days after the first disbursement. Borrowers may defer principal for up to 60 months from the date of first disbursement if enrolled at least half time. Repayment of principal and interest begins 180 days after graduation or if enrollment falls below half time in a Title IV eligible program at a Title IV eligible school. The minimum loan amount for this option is $5,000. Immediate Repayment Payment of principal and interest begins days after the final disbursement. 11. Available repayment terms The Custom Choice Loan offers multiple repayment plan options, terms and types to meet the needs of your students and families. Repayment term options available are 7, 10, or 15 years. The 15 year repayment term is offered for loans greater than $5,000. 3, SunTrust Banks, Inc. CONFIDENTIAL & PROPRIETARY 3

6 12. Customer service for student/parents a. Phone numbers Borrowers: (866) b. Hours Monday Friday, 9am 6pm EST c. Survey results (if applicable) Not applicable. 13. Customer service for schools a. Phone number Schools: (866) b. Hours Monday Friday, 9am 6pm EST c. Survey results (if applicable) Not applicable. 14. Do you participate in ELM NDN? Yes, we are a participant of ELM NDN. 15. Do you offer a consolidation loan? If so, please provide details. No. 16. Are you affiliated with any other lenders? If so, please describe below in detail. The SunTrust Custom Choice Loan and the Union Federal Private Student Loan are unique private loan programs funded by SunTrust Bank. Each of these loan programs have established their own credit and risk criteria, and have several key differences in their program and borrower benefits SunTrust Banks, Inc. CONFIDENTIAL & PROPRIETARY 4

7 17. Copy of your most current Application/Solicitation disclosure for each loan product and the date of which it was last updated. The link to the SunTrust Custom Choice Application and Solicitation Disclosure can be found at: This link is live and is updated whenever changes are made to the program. 18. Are there any new products or services not otherwise addressed in this RFI of which you would like us to be aware? Application Highlights The online application process for the Custom Choice Loan provides applicants transparency by displaying, in the same session, an estimated repayment calculation based on the pricing an applicant is offered. The applicant can then customize loan options and see the impact of their choices on the loan pricing before they make a commitment to final loan terms. The following processing features are available for applicants: Online, same session, initial credit review Online application including loan customization and real time pricing calculations EasyInvite SM tool gives borrowers a way to share the application with their cosigner during the application As an added convenience, a cosigner may start the application first, and invite the student to join once their information has been entered esignature process is an option for the Credit Agreement Phone support is available to help borrowers and cosigners with questions during the entire application process Applicants have the option to submit the Self Certification Form via document upload, fax or mail. Supporting documentation required to complete the application may also be submitted with the same options 2015 SunTrust Banks, Inc. CONFIDENTIAL & PROPRIETARY 5

8 SUNY Buffalo State (002842) Preferred Lender Arrangement RFI Questions March 10, Name of loan program/product SunTrust Bank, Custom Choice Loan 2. Years in student loan market Graduate Student Loan Product SunTrust Education Loans is a leading provider of private education loans. SunTrust Bank has been an education lender for nearly three generations and a provider of private loans since Fixed and/or Variable The student may choose a fixed or variable interest rate upon passing the initial credit review during the online application session. Rate options offered will depend on the student s and cosigner s (if applicable) credit histories, the repayment option and loan term selected, the requested loan amount, and information provided on the online loan application. 4. Interest rate spread for both fixed and variable (if applicable) Variable interest rates are based on the One Month London Interbank Offered Rate (LIBOR) index plus a margin, adjusted monthly. The 1 month LIBOR index is 0.250% as of April 1, Variable interest rates currently range from 1 month LIBOR % to 1 month LIBOR % (APRs currently range from 3.241% 1 to 8.672% 2 ). Fixed rate pricing currently ranges from 4.75% to 11.25% (APRs currently range from 4.751% 3 to % 4 ). 5. Eligibility criteria a. SAP required? No b. ½ time enrollment required? Yes c. Must the student be matriculated? Yes d. Eligible if in certificate program? No 2015 SunTrust Banks, Inc. CONFIDENTIAL & PROPRIETARY 6

9 e. Past due balances? If so, what are the criteria? Yes Applications will be accepted for up to one month following the end of the applicant s academic period. For example, when a loan period ends on May 15, the borrower has until June 30 to submit an application for the previous academic period. 6. Minimum loan amount The minimum loan amount is $1,001, subject to certain state exceptions Describe any and all fees associated with your loan product if applicable There are no origination fees for either the fixed or variable interest rate loan options. A late fee (not to exceed 5% of the monthly payment) may be assessed in any month when the scheduled payment is received more than 10 days after the due date. 8. Back end benefits ACH Reduction Borrowers can reduce their interest rate by up to 0.50% for auto debit. 7 Interest rate reduction of 0.25% for borrowers who elect to have monthly principal and interest payments transferred electronically from a bank account. Additional 0.25% interest rate reduction for auto debit of monthly payments from a SunTrust deposit account. Graduation Reward Upon graduation with a bachelor s degree or higher, student borrowers are eligible to request a 1%principal reduction to the net disbursement amount of the loan. Proof of graduation must be submitted to the loan servicer within 90 days after graduation, and a certified copy of the diploma is acceptable. To receive the reward, no more than one late payment (any payment received more than ten days after the due date) is allowed prior to the graduation reward request. Loan Forgiveness In the event of the primary borrower s death or permanent disability, the loan will be forgiven. Proper documentation is required SunTrust Banks, Inc. CONFIDENTIAL & PROPRIETARY 7

10 9. Co signer release? If so, what are the terms? Cosigner release is available to borrowers who have made on time payments (within 10 days of due date) for the first 48 consecutive principal and interest payments. The applicant must pass applicable underwriting criteria and other requirements as set forth in the Credit Agreement at the time of the request Available repayment options Fully Deferred Repayment Both principal and interest can be deferred until the earlier of six months after the borrower graduates or ceases to be enrolled at least half time in a Title IV eligible school, but no more than 66 months from the first disbursement date. Interest Only Repayment Interest payments begin days after the first disbursement. Borrowers may defer principal payments for no more than 66 months from the date of the first disbursement if enrolled at least half time in a Title IV eligible program. Repayment of principal and interest begins 180 days after graduation or if enrollment falls below half time in a Title IV eligible school, up to a maximum of 66 months from the first disbursement date. Partial Interest Repayment (Student Starter) 1 5 Borrowers develop good repayment habits by starting with a small, fixed monthly partial interest payment of $25 per loan while they are in school. The fixed $25 per month interest payments begin days after the first disbursement. Borrowers may defer principal for up to 60 months from the date of first disbursement if enrolled at least half time. Repayment of principal and interest begins 180 days after graduation or if enrollment falls below half time in a Title IV eligible program at a Title IV eligible school. The minimum loan amount for this option is $5,000. Immediate Repayment Payment of principal and interest begins days after the final disbursement. 11. Available repayment terms The Custom Choice Loan offers multiple repayment plan options, terms and types to meet the needs of your students and families. Repayment term options available are 7, 10, or 15 years. The 15 year repayment term is offered for loans greater than $5,000. 3, SunTrust Banks, Inc. CONFIDENTIAL & PROPRIETARY 8

11 12. Customer service for student/parents a. Phone numbers Borrowers: (866) b. Hours Monday Friday, 9am 6pm EST c. Survey results (if applicable) Not applicable. 13. Customer service for schools a. Phone number Schools: (866) b. Hours Monday Friday, 9am 6pm EST c. Survey results (if applicable) Not applicable. 14. Do you participate in ELM NDN? Yes, we are a participant of ELM NDN. 15. Do you offer a consolidation loan? If so, please provide details. No. 16. Are you affiliated with any other lenders? If so, please describe below in detail. The SunTrust Custom Choice Loan and the Union Federal Private Student Loan are unique private loan programs funded by SunTrust Bank. Each of these loan programs have established their own credit and risk criteria, and have several key differences in their program and borrower benefits SunTrust Banks, Inc. CONFIDENTIAL & PROPRIETARY 9

12 17. Copy of your most current Application/Solicitation disclosure for each loan product and the date of which it was last updated. The link to the SunTrust Custom Choice Application and Solicitation Disclosure can be found at: This link is live and is updated whenever any changes are made program. 18. Are there any new products or services not otherwise addressed in this RFI of which you would like us to be aware? SunTrust believes it is not only important to provide smart borrowing information at the beginning of the loan process, but to educate borrowers on their repayment responsibilities throughout the process. Historically, the student s very first payment due is often the payment that is late or missed. In the spirit of education and assisting the establishment of a positive credit history, the following plan has been developed to help borrowers understand exactly when their repayment begins and how to effectively manage private student loan debt. Early Awareness, prior to first payment due date: Welcome packages are mailed to all borrowers and their cosigners Several touch points are made to the borrower and the cosigner (if applicable) notifying them of their pending repayment status Communication methods include letters, s and phone calls Default Management AES, our loan servicer, has created an informational web site, YouCanDealWithIt.com, that guides borrowers and parents through all aspects of the student aid process prior to attending, during, and post college. It gives practical advice to parents, students (undergrad and graduate), and college graduates about common financial situations they may be facing. The site does this by offering tips, calculators, resources, helpful budgeting guidelines, information about student loans, and more. YouCanDealWithIt.com also has valuable resources that financial aid offices can take advantage of. It provides information that helps schools create a default management prevention plan and educate their students about education loans and debt management to allow for a seamless transition from the classroom to the working world SunTrust Banks, Inc. CONFIDENTIAL & PROPRIETARY 10

13 Financial Wellness Curriculum: The Financial Wellness Curriculum is a series of PowerPoint presentations on topics that are important to today s college student, such as financial wellness, understanding financial aid and how to establish good credit. These presentations are the perfect complement to your current orientation program or exit counseling. This curriculum can help teach your students the basics about money management and arm them with tips and information to help them make smart, educated financial decisions. Creating a Default Prevention Plan: Information that will assist schools in creating a default prevention plan and advising your students about educational loans and debt management to allow for a seamless transition from the classroom to the working world. This includes a three step letter series, a default aversion roster, knowing your cohort default rate and providing sample call scripts and scenarios to explore the best possible options available for dealing with delinquent student loan borrowers. Calculators and Downloadable Forms: Estimate monthly student loan payments using the calculator appropriate to the type of repayment plan. Also download and keep on hand deferment and forbearance forms for student borrowers who are interested in and qualify for deferment and forbearance options. Informative Website Among the support SunTrust provides to borrowers and financial aid officers is a comprehensive website at suntrusteducation.com. Website elements include: Custom Choice Loan information, including eligibility requirements and borrower benefits Paying for College section with resources for students and their families A step by step online application to make the process easy Several calculators and repayment examples FAQ and glossary of financial aid terms Money management tips, including budgeting information Federal loan information Educational Materials for Students SunTrust has created high quality, easy to read educational materials about private student loans and the Custom Choice Loan. As part of its mission to minimize delinquency and default rates, debt management guides are also available with helpful information about budgeting, saving, and identify theft. To order any of these materials, please contact your dedicated Relationship Manager SunTrust Banks, Inc. CONFIDENTIAL & PROPRIETARY 11

14 Disclosures The lender for this program is SunTrust Bank. SunTrust and Custom Choice Loan are both federally registered service marks of SunTrust Banks, Inc. and are used with the permission of SunTrust Bank. SunTrust Bank reserves the right to change or discontinue these programs without notice. SunTrust Bank, Member FDIC. The contents of this proposal are confidential and contain information that is proprietary to SunTrust Banks, Inc. Your school agrees that this proposal and its contents shall be maintained in confidence and may only be disclosed to employees of the school who need to know this information for the purposes of evaluating this proposal. SunTrust reserves the right to revise the proposal at any time. This proposal cannot be released beyond your institution unless so required by state or other applicable law. Before release, SunTrust requests notification so that opportunities for redaction are available to SunTrust under the prevailing statutes. *Loans are not available to students who are permanent residents of Wisconsin or Iowa. 1 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 the margin. The current One-month LIBOR index is 0.250% on 04/01/15. LIBOR 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). The variable interest rate and Annual Percentage Rate (APR) may be higher depending upon (1) the credit history of the student and, if applicable, the cosigner, (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 variable interest rate will increase or decrease if the one-month LIBOR index changes. This APR example assumes a $10,000 loan disbursed over two transactions with immediate repayment, a monthly principal and interest payment of $ (there is a minimum monthly payment of $50), a 7-year repayment term (84 months), and a 2.99% margin. Margins can range from 2.99% to 8.99% depending upon (1) the credit history of the student and, if applicable, the cosigner, (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. Other repayment options include Interest-Only, Partial Interest payment, and Full Deferment (Partial Interest option available on loans of $5,000 or more and requires a $25 monthly interest-only payment). Other repayment terms include 10 and 15 years (15 years only available for loans of $5,000 or more). Rates and terms effective for applications received on or after 04/01/15. 2 This APR example assumes a $10,000 loan disbursed over two transactions with immediate repayment, a monthly principal and interest payment of $ (there is a minimum monthly payment of $50), a 7-year repayment term (84 months), and a 4.75% interest rate (in effect as of 04/01/15). Current fixed interest rates can range from 4.75% to 11.25% depending on (1) the credit history of the student and, if applicable, the cosigner, (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. Other repayment options include Interest-Only, Partial Interest payment, and Full Deferment (Partial Interest option available on loans of $5,000 or more and requires a $25 monthly interest-only payment). Other repayment terms include 10 and 15 years (15 years only available for loans of $5,000 or more). 3 The 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 the margin. The current One-month LIBOR index is 0.250% on 04/01/15. LIBOR 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). The variable interest rate and Annual Percentage Rate (APR) may be higher depending upon (1) the credit history of the student and, if applicable, the cosigner, (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 variable interest rate will increase or decrease if the one-month LIBOR index changes. This APR assumes a $10,000 loan disbursed over two transactions with a deferred repayment, a monthly principal and interest payment of $ (there is a minimum monthly payment of $50), a 15-year repayment term (180 months), a 45-month deferment period, a six month grace period before entering repayment and an 8.99% margin. Margins can range from 2.99% to 8.99% depending upon (1) the credit history of the student and, if applicable, the cosigner, (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. Other repayment options include Immediate Repayment, 2015 SunTrust Banks, Inc. CONFIDENTIAL & PROPRIETARY 12

15 Interest-Only, and Partial Interest payment (Partial Interest option available on loans of $5,000 or more and requires a $25 monthly interest-only payment). Other repayment terms include 7 and 10 years (15 years only available for loans of $5,000 or more). Rates and terms effective for applications received on or after 04/01/15. 4 This APR example assumes a $10,000 loan disbursed over two transactions with a deferred repayment, a monthly principal and interest payment of $ (there is a minimum monthly payment of $50), a 15-year repayment term (180 months), a 45-month deferment period, a six month grace period before entering repayment and a 11.25% interest rate (in effect as of 04/01/15). Current fixed interest rates can range from 4.75% to 11.25% depending on (1) the credit history of the student and, if applicable, the cosigner, (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. Other repayment options include Interest-Only, Partial Interest payment, and Full Deferment (Partial Interest option available on loans of $5,000 or more and requires a $25 monthly interest-only payment). Other repayment terms include 7 and 10 years (15 years only available for loans of $5,000 or more). 5 The Partial Interest plan is available on loans of $5,000 or more. Making interest only payments will not reduce the principal balance on the loan. For Partial Interest and Fully Deferred loans, any accrued and unpaid interest will be capitalized (added to your principal loan balance) when repayment of principal and interest begins. Students must be enrolled at least half-time to be eligible. 6 The minimum loan size is $1,001 subject to individual state exceptions 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), and South Carolina ($3,601). 7 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 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 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. 8 If the student borrower on a loan dies after disbursement of all or part of the loan(s) and the loan(s) has not previously become a charged off loan due to non-payment or bankruptcy, then the outstanding principal and accrued interest balance on such loan(s) shall be forgiven if the servicer is informed of the student borrower's death and receives acceptable proof of death. If the student borrower on a loan becomes totally and permanently disabled and the loan(s) has not previously become a charged off loan due to non-payment or bankruptcy, then student borrower may apply to have the loan balance discharged by completing a discharge application. Individuals may incur tax obligations as a result of loan forgiveness. The borrower(s) may wish to consult a tax advisor prior to applying for loan forgiveness to determine the tax implications of such forgiveness, if any. 9 Request for the cosigner to be released can be made after the first 48 consecutive, on-time payments (not later than ten days after the due date) of principal and interest have been made. Lump sum payments are treated as one individual payment, regardless of the payment size. At the time of the request, the student borrower must meet credit criteria, must have had at least one payment transferred electronically from a bank account, and must be enrolled for automatic deduction of monthly payments from a bank account SunTrust Banks, Inc. CONFIDENTIAL & PROPRIETARY 13