Review of Citizens Bank's Student Loan Program For 2023

Jan 31, 2023 By Susan Kelly

Originally known as Citizens Bank, the name was shortened to "Citizens" to reflect better the company's position as one of the leading retail banks in the United States. The organization, with headquarters in Providence, Rhode Island, has more than 900 branch locations and provides student loans to people around the United States.

Citizens Bank originates private student loans for undergraduates and graduates, and the bank also provides refinancing options for existing student debt. Citizens are one of the few refinancing lenders that would approve a loan even if the borrower still needs to complete their education and leave before receiving a diploma or degree.

Information About a Citizens Bank Undergraduate Loan

Undergraduate loans from Citizens Bank are only offered at fixed interest rates. Students who are not U.S. citizens or permanent residents but have a cosigner are also eligible for loans.

Total Loan Amount and Interest Rates

Citizens Bank offers student loans with maturities between 5 and 15 years. There is a $150,000 cap on the loan amount, with a minimum of $1,000. The maximum allowed amount is a cumulative total that includes both federal and private student loan debt.

Fees and Interest on Loans

Citizens Bank offers undergraduate loans with fixed interest rates between 4.74% and 12.18%. The interest rate is variable, ranging from 4.40% to 12.72%. There are no costs associated with the loan's origination or distribution. However, there is a fee for paying late. Citizens Bank will assess a fee of 5% of the total overdue payment.

Loan Refinancing Specifics from Citizens Bank

Lenders specializing in refinancing student loans often only consider candidates with bachelor's degrees or above. Citizen's Bank, however, deviates from the norm. Even if you dropped out of school before receiving your bachelor's degree, you are still eligible for a student loan.

Anyone who has made 12 on their mortgage after graduating college can apply for a refinance regardless of whether they have a bachelor's degree or none.

Citizens Refinancing Loans are available with the option of a fixed or variable interest rate, and the lender also provides refinancing for student and parent loans.

Total Loan Amount and Interest Rates

If you want to refinance your student loans, you need at least $10,000 worth of them. Maximum refinancing amounts are $500,000 for those with graduate degrees and $300,000 for those with a bachelor's or below.

Fees and Interest on Loans

You may be eligible for an interest rate between 4.59% and 11.28% on a fixed loan or between 3.99% and 11.07% on a variable loan. No costs are associated with applying for or receiving this loan, and only a 5% late payment fee.

Applying For A Student Loan at Citizens Bank

To qualify for a Citizens Bank student loan, you must be a whole- or part-time student at an approved school. Any citizen or permanent resident of the United States, as well as any international student with an American friend or relative who is prepared to co-sign a student loan application, are eligible to apply for a federal Direct Unsubsidized Stafford Loan.

Essential Requirements

Citizenship eligibility requirements often include candidates reaching the age of majority in their home state. This necessitates a minimum age of 18 in the majority of states. Citizens Bank stipulates that borrowers or co-borrowers must have an annual household income of $12,000 to qualify for student loans.

Acceptable Cosigner Choices

Cosigners are welcome on a private student loan and refinancing applications at Citizens Bank. After making 36 on-time payments, borrowers can request that their cosigner be released from their loan.

A Guide To Getting A Citizens Bank Student Loan

Unlike many other lenders, Citizens Bank does not offer a prequalification tool for its private student loans. A loan application and credit check are required to determine your loan eligibility and interest rate.

You can apply online by providing basic information about yourself and your institution. You will also need to provide evidence of your income, such as recent pay stubs, your monthly mortgage or rent payment, and your expected graduation date.

An immigration document may be requested from you if you are an international student or a DACA recipient. Citizens will do a background check after they have submitted their application.

The Verdict

Citizens Bank can provide a wide range of student loan options for students, graduates, professionals, and their parents at competitive rates. Citizens can help you discover a financial solution for your postsecondary education needs, whether you're seeking a bachelor's, master's, MBA, or another degree.

Due to its ability to grant funding for several years, the application procedure is streamlined, and you can acquire the money you need fast during your stay in school. International students with access to a U.S.-based cosigner may also find the bank a practical option.

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