Citizens Bank Student Loans Review for 2025
Student Finance & Loan Expert
The average college expenditure for American families in the 2022-2023 school year was $28,026. With such significant costs, many students and families face financial challenges in funding higher education. Fortunately, Citizens Bank offers various student loan options to help bridge the financial gap.
We have done our research and reached out to loan experts to provide a comprehensive review of Citizens Bank student loans, addressing key questions and concerns to help you make informed financial decisions for your education.
Key Things You Should Know About Citizens Bank Student Loans
- Citizens Bank is a well-established financial institution that offers a variety of student loan products to help students and their families finance higher education.
- Citizens Bank provides four main types of student loans: undergraduate, graduate, parent, and student loan refinancing. This diverse range ensures that options are available for different educational levels and needs.
- The fixed annual percentage rate (APR) ranges from 4.24% to 15.60%, while the variable APR ranges from 5.99% to 16.60%. These rates provide flexibility depending on the borrower’s financial situation.
- Students can borrow up to $225,000 or the total cost of education, whichever is lower, allowing significant coverage for education expenses.
- Only students attending Title IV public or private institutions are eligible for Citizens Bank student loans, ensuring that the loans are used for accredited educational programs.
- Citizens Bank student loans offer various benefits, such as multiple repayment options and potential rate reductions for existing customers, making their loan products more attractive and manageable.
Table of Contents
- What is Citizens Bank?
- What types of student loans does Citizens Bank offer?
- What are the interest rates for Citizens Bank student loans?
- What repayment plans are available for Citizens Bank student loans?
- Are there any special features or benefits with Citizens Bank student loans?
- Who is eligible for Citizens Bank student loans?
- How long does it take to get approved for a Citizens Bank student loan?
- How does having a co-signer affect my loan terms with Citizens Bank?
- How does citizens bank compare to other private lenders?
- Can Citizens Bank student loans be integrated with additional financial aid for nursing school?
- Are there any tax benefits associated with Citizens Bank student loans?
- What alternative career paths can support my loan repayment?
- Are there any hidden fees with Citizens Bank student loans?
- How do Citizens Bank student loans support military students and veterans?
- What economic factors influence Citizens Bank student loan interest rates?
- Does Citizens Bank offer student loan refinancing?
- What repayment relief options are available if I face financial hardships?
- How do Citizens Bank student loans affect my credit score?
- What are the pros and cons of Citizens Bank student loans?
- How can I secure more favorable terms with Citizens Bank?
- Financial Aid Options for Cosmetology Students with Citizens Bank
- Other Things You Should Know About Citizens Bank Student Loans
What is Citizens Bank?
Headquartered in Providence, Rhode Island, Citizens Bank offers a broad range of retail and commercial banking products and services to individuals, small businesses, middle-market companies, large corporations, and institutions.
For students and families seeking financial aid for education, Citizens Bank provides several tailored student loan options. These include undergraduate and graduate loans, parent loans, and refinancing options. As one of the leaders in the student loan industry, Citizens Bank aims to help customers reach their educational goals by offering competitive interest rates, flexible repayment plans, and excellent customer service.
One of the nation’s oldest and largest financial institutions, Citizens Financial Group, Inc., has $219.9 billion in assets as of June 30, 2024.
What types of student loans does Citizens Bank offer?
Citizens Bank offers a variety of student loan products designed to meet different educational needs:
- Undergraduate Student Loans. These loans are for students pursuing their bachelor's degrees, providing financial support throughout their undergraduate studies.
- Graduate Student Loans. Tailored for students seeking advanced degrees such as master's, doctoral, medical, dental, and law degrees, these loans help cover the costs associated with graduate education.
- Parent Loans. These loans are available for parents or sponsors who wish to borrow funds on behalf of their students, allowing them to financially support their child's education.
- Student Loan Refinancing. Citizens Bank offers refinancing options for individuals looking to consolidate existing federal and private student loans into a single loan, potentially with better terms and lower interest rates.
These loan options ensure that Citizens Bank can provide comprehensive financial solutions for students and families at various stages of their educational journey.
As recent statistics on student loan debt show, the total federal student loan debt amount reached $1.620 trillion in Q2 of 2024. See the chart below for a historical look at the federal loan debt situation in the US.
What are the interest rates for Citizens Bank student loans?
For Citizens Bank student loans, the interest rates are as follows:
- Fixed APR. The fixed annual percentage rate (APR) for undergraduate student loans ranges from 4.24% to 15.60%. This rate ensures that your interest rate and monthly payments remain the same throughout the loan. For graduate loans, the fixed APR ranges from 4.24% to 14.10%. For parent's loans, the rates are 5.99% to 10.61%.
- Variable APR. The variable annual percentage rate ranges from 5.99% to 16.60%. This rate means that your interest rate and monthly payments may fluctuate during the repayment period, depending on market conditions. Graduate students loan have an variable APR range from 5.99% to15.10%. For parent's loans, the ongoing variable APR rates range from 6.99% to 10.61%.
What repayment plans are available for Citizens Bank student loans?
Citizens Bank offers a range of repayment plans for their student loans to accommodate different financial situations. They are outlined below, including tables to give you an idea of what to expect. All are on a 10-year repayment plan with a borrowed amount of $10,000.
Immediate Repayment
This plan requires borrowers to make full principal and interest payments immediately after the loan is disbursed. This option can help reduce the overall cost of the loan since interest does not accrue during school or the grace period.
Interest-Only Repayment
Borrowers pay only the interest while in school and during the grace period, which begins after graduation. This plan keeps monthly payments lower while in school, but the principal balance remains unchanged until full payments begin.
Deferred Repayment
With this option, no payments are required while the borrower is in school at least half-time, and during the grace period, which lasts six months after graduation. Interest accrues during this period, increasing the total loan cost, but it allows students to focus on their studies without worrying about loan payments.
Are there any special features or benefits with Citizens Bank student loans?
Citizens Bank offers several unique features and benefits to its student loan borrowers:
- Multi-Year Approval: This feature allows eligible students to apply for a loan once and potentially fund their entire college career without reapplying each year.
- Customer Loyalty Discounts: Existing Citizens Bank customers may qualify for interest rate discounts on their student loans.
- Automatic Payment Discounts: Borrowers can receive a reduced interest rate by setting up automatic payments from a Citizens Bank account.
- Flexible Repayment Options: Citizens Bank offers various repayment plans to accommodate different financial situations.
- No Fees: There are no application, origination, or disbursement fees associated with Citizens Bank student loans.
- Early Repayment Benefits: Some loan repayment plans may offer additional benefits for early repayment.
- Cosigner Release Option: Certain conditions may qualify you for cosigner release, allowing you to remove your cosigner from the loan.
- Educational Resources: Citizens Bank provides financial literacy resources and tools to help borrowers effectively manage their student loan debt.
It's important to note that specific terms and conditions may vary, so it's advisable to review the details carefully before applying for a loan.
Who is eligible for Citizens Bank student loans?
Citizens Bank student loans are available to students with various needs. Eligibility requirements include the following:
- Citizenship. US citizens or permanent residents are eligible. International students can apply with a creditworthy US citizen or permanent resident cosigner.
- Enrollment Status. The student must be enrolled at least half-time in a degree-granting program at an eligible institution. Half-time enrollment generally means 6-8 credit hours per semester, but specifics can vary by school. Consult your school’s financial aid office for details.
- Credit History. Applicants must have good credit or a qualified cosigner.
- Age. Applicants must have attained the age of majority in their state of residence. If not, a cosigner will be required.
- Loan History. Applicants must have no prior student loan defaults.
- Institution Type. The student must attend a Title IV eligible public or private institutions.
How long does it take to get approved for a Citizens Bank student loan?
Approval for a Citizens Bank student loan generally takes two to four weeks. Sometimes, it is also immediate; some take three to five business days. The process involves submitting an application, which is then reviewed for creditworthiness and eligibility.
Once all necessary information is received, Citizens Bank will assess the application and notify the borrower of the decision.
Factors that can influence the approval timeline include:
- Completeness of the application: Ensuring all required information is accurate and complete can expedite the process.
- Creditworthiness: A strong credit history or a qualified cosigner can positively impact approval time.
- Time of year: Application volume may vary throughout the year, potentially affecting processing time.
It's important to submit your application well before the start of the academic term to allow sufficient time for approval and disbursement of funds.
How does having a co-signer affect my loan terms with Citizens Bank?
Having a co-signer can significantly impact your loan terms with Citizens Bank, especially for student loans.
Benefits of Having a Co-Signer
- Increased Approval Chances. A co-signer with good credit can help you qualify for a loan even if your own credit history is limited or poor.
- Lower Interest Rate. A co-signer with a strong credit score can often secure a lower interest rate on the loan, saving you money in the long run.
- Higher Loan Amount. In some cases, having a co-signer might allow you to borrow a larger amount.
However, note that there are also potential drawbacks for the co-signer. One major issue is financial responsibility. The co-signer is legally obligated to repay the loan if you default, which can have serious financial consequences.
Additionally, late or missed payments on the loan can negatively impact the co-signer's credit score. This can make it more difficult for the co-signer to obtain their own credit in the future, as the co-signed loan may appear on their credit report and affect their creditworthiness.
How does citizens bank compare to other private lenders?
When evaluating private student loan options, it's essential to consider how Citizens Bank stands against its competitors in terms of rates, repayment options, and borrower benefits. While Citizens Bank offers competitive interest rates and repayment flexibility, other private lenders may provide features that better suit individual financial goals.
For instance, College Ave is another well-known private lender that offers tailored repayment plans and user-friendly tools for managing student debt. Exploring College Ave student loans reviews reveals insights into how they compare to Citizens Bank, especially for borrowers who prioritize customizable repayment options and an intuitive loan application process.
Additionally, specialized benefits, such as rate reductions for autopay or loyalty discounts, differ across lenders. Prospective borrowers should regularly assess these features alongside interest rates and repayment terms to align their choice with their financial needs and long-term objectives. By researching multiple lenders, students can secure the most advantageous deal for financing their education.
Can Citizens Bank student loans be integrated with additional financial aid for nursing school?
Citizens Bank student loans provide a structured financing option, yet nursing students may benefit from combining these loans with other financial aid sources. Assessing a diversified funding strategy can support better long-term financial management and reduce overall debt burden. For instance, exploring options like grants for nursing school may offer supplementary support tailored to healthcare education. Prospective borrowers are encouraged to verify eligibility and specific usage policies for each aid type to ensure that their financial plan meets both short-term needs and long-term career goals.
Are there any tax benefits associated with Citizens Bank student loans?
Citizens Bank student loans are private loans, and eligibility for IRS tax benefits on loan interest is subject to specific guidelines. Only interest that qualifies as “student loan interest” under IRS criteria may be deductible, and this depends on factors such as how the funds are used and the borrower's income level. It is advisable that borrowers maintain detailed records of interest payments and consult a tax professional to determine eligibility for potential deductions. Individuals financing education through cost-efficient options such as easy associate degrees should particularly consider these tax implications when evaluating the overall cost of their loan.
What alternative career paths can support my loan repayment?
Borrowers can benefit from exploring diverse career opportunities to bolster their income and ease loan repayment pressures. Leveraging transferable skills and market trends may open up pathways outside traditional roles, enhancing financial resilience during repayment periods. For instance, researching opportunities in entry-level medical jobs no degree can reveal viable positions that provide steady income without requiring advanced qualifications. Such approaches help create a balanced financial strategy that complements Citizens Bank student loan benefits while ensuring ongoing career growth.
Are there any hidden fees with Citizens Bank student loans?
Citizens Bank generally emphasizes transparency in its fee structure; however, borrowers must verify whether any non-obvious charges apply. Specific attention should be given to potential application or processing fees, along with terms regarding prepayment or late payment penalties, which can impact the overall cost. It is recommended to review the detailed borrower agreement and confirm fee-related items directly with a bank representative. For more information on comparing academic investments, consider insights from the easiest PhD to get.
How do Citizens Bank student loans support military students and veterans?
Citizens Bank student loans offer competitive terms that may benefit military students and veterans by providing flexible repayment options and clear loan structures. Military borrowers are advised to evaluate how these loan features align with their unique financial situations. In particular, confirming eligibility criteria and discussing potential military-specific considerations with a bank representative can help optimize post-education financial planning. For additional research on educational resources tailored for those with a military background, consider exploring veteran friendly online colleges.
What economic factors influence Citizens Bank student loan interest rates?
Citizens Bank’s student loan rates are subject to various economic determinants that can affect your overall repayment cost. Market benchmarks such as the federal funds rate, inflation trends, and broader economic conditions typically play a role in shaping interest rates. Additionally, borrower-specific factors like creditworthiness and financial history are considered during rate determination. For an up-to-date perspective on how these variables interact, reviewing the current private student loan interest rates may offer valuable insights into prevailing market trends and their impact on your loan terms.
Does Citizens Bank offer student loan refinancing?
Yes, Citizens Bank offers student loan refinancing. This means you can potentially consolidate multiple student loans into a single loan with a lower interest rate. By refinancing, you might save money over time and simplify your monthly payments.
Citizens Bank provides refinancing options for both students and parents. The variable APR for refinancing ranges from 7.04% to 12.43%. The fixed APR, on the other hand, ranges from 6.50% to 10.99% as of writing.
However, it's important to note that refinancing federal student loans into a private loan could mean losing access to federal repayment plans and forgiveness programs. Before deciding to refinance, carefully weigh the benefits against the drawbacks.
Also, it is good to talk to everyone involved. In 2023, while 98% of families expect students to partially responsible for loan repayment, only 44% of American families discussed the issue. See the chart below for a detailed look at the topics that were at these discussions.
What repayment relief options are available if I face financial hardships?
Citizens Bank recognizes that unforeseen financial challenges can affect repayment ability. In such instances, borrowers are encouraged to contact the bank’s support team to discuss tailored solutions, which may include temporary forbearance or adjustments to the repayment schedule. It is important to review your specific loan agreement for any clauses outlining hardship assistance to avoid additional fees or long-term impacts on your credit profile. Additionally, exploring alternative educational investments such as cheap degrees online may offer career advancements that improve financial stability and facilitate a smoother repayment process.
How do Citizens Bank student loans affect my credit score?
Citizens Bank student loans are reported to major credit bureaus, meaning that timely repayment can contribute positively to your credit history while delays or defaults may lower your score. Borrowers who consistently meet repayment deadlines typically benefit from an enhanced credit profile and improved opportunities for future borrowing. Monitoring your credit score and understanding how repayment behaviors influence long-term financial health is crucial. For insights on balancing educational investments with credit considerations, review our guide What's the easiest degree to get?
What are the pros and cons of Citizens Bank student loans?
Understanding private student loans and deciding on a student loan lender require careful consideration of various factors. This section outlines the advantages and disadvantages of choosing Citizens Bank student loans.
Pros of Citizens Bank Student Loans
- Multi-year approval. You can secure funding for your entire degree program with a single application.
- Interest rate discounts. You may qualify for lower interest rates by enrolling in autopay or being an existing Citizens Bank customer.
- Co-signer release option. There’s a possibility of releasing your co-signer from the loan after consistent on-time payments.
- Available to international students. Citizens Bank offers loans to international students with a qualified co-signer.
- Quick rate quote and fee-free refinancing. Get your rate in about two minutes with no impact to your credit score. Enjoy no application, origination, or disbursement fees when refinancing your student loans.
Cons of Citizens Bank Student Loans
- Strict eligibility requirements. Meeting Citizens Bank's criteria for a student loan can be challenging.
- Limited repayment options. Compared to other lenders, Citizens Bank may offer fewer repayment plan choices.
- Potential lack of federal loan benefits. Refinancing federal loans into a private loan with Citizens Bank could mean losing access to federal repayment plans and forgiveness programs.
Here's What Graduates Have to Say About Their Citizens Bank Student Loans
"Getting a loan from Citizens Bank was a seamless process. Their customer service was incredibly helpful, and the loan terms were clear and fair. I’m grateful for the support I received during my college years." - Amanda
"Refinancing my student loans with Citizens Bank was one of my best decisions. It reduced my interest rate significantly and made my monthly payments much more manageable. Their team was supportive throughout the process." - Lily
"Citizens Bank made financing my education straightforward and manageable. The competitive interest rates and flexible repayment options were a huge relief. I highly recommend their services to any student in need of financial assistance." - Jeremy
Key Findings
- One of the largest financial institutions in the US, Citizens Bank has assets worth $219 billion in 2023.
- Citizens Bank offers a range of student loans for undergraduate and graduate students, including student loan refinancing.
- The maximum loan amount students can get is $225,000 or the the total cost of education, whichever is lower.
- Citizens Bank offers a fixed annual percentage rate (APR) of up to 15.6% and a variable APR of up to 16.6%.
- To ensure that loan funds are used effectively, Citizens Bank requires student-borrowers to attend Title IV-eligible public or private colleges or universities.
How can I secure more favorable terms with Citizens Bank?
• Strengthen your credit profile by ensuring timely payments on existing debts and reducing overall credit utilization.
• Provide comprehensive documentation, including income verification and a stable employment history, to support your application.
• Consider leveraging a co-signer with a strong credit history when necessary to improve your eligibility for competitive interest rates.
• Regularly review and assess competing loan offers to negotiate terms that align with your long-term financial strategy.
• For additional guidance on securing loans that meet your educational needs, refer to I need a loan for school.
Financial Aid Options for Cosmetology Students with Citizens Bank
For students pursuing cosmetology school, securing financial aid can be challenging, as traditional federal loans and grants may not fully cover program costs. Citizens Bank offers tailored loan solutions to bridge this gap, making it easier for aspiring cosmetologists to achieve their educational goals.
Loan Options for Cosmetology School
Citizens Bank student loans are designed to cater to students at Title IV-eligible institutions, including many accredited cosmetology schools. These loans can help cover tuition, supplies, and other program-related expenses.
Key benefits include:
- High Borrowing Limits: Borrow up to $225,000 or the total cost of your education, ensuring comprehensive coverage for your program.
- Flexible Terms: Choose between fixed and variable APRs to align with your financial plans.
- Cosigner Support: Students with limited credit histories can improve their approval chances and secure lower interest rates with a qualified cosigner.
For more details on loans for cosmetology school, check out our guide on student loans for cosmetology school.
2. Specialized Repayment Options
Cosmetology students often face unique financial pressures during and after their programs. Citizens Bank offers repayment flexibility, including:
- Deferred Payments: Postpone payments while in school and during a six-month grace period after graduation.
- Interest-Only Payments: Pay only the accrued interest during your studies to keep your loan balance manageable.
3. Tips for Cosmetology Students
Navigating financial aid for cosmetology school can feel overwhelming. Here are some
Other Things You Should Know About Citizens Bank Student Loans
What is the student loan limit for Citizens Bank?
The maximum loan amount you can borrow from Citizens Bank is $225,000 or the total cost of your education, whichever is lower. It's important to note that this limit includes both federal and private student loans combined. Also, The actual amount you can borrow might also be affected by your school's cost of attendance.
How long does it take to get a student loan from Citizens Bank?
The time it takes to receive a student loan from Citizens Bank can fluctuate based on several factors, including the completeness of your application, the time required for the school to certify the loan, and the processing time. Generally, it's advisable to apply well before the start of the academic term to allow sufficient time for the loan to be processed and disbursed. Typically, it takes two to four weeks.
Does Citizens Bank offer graduate student loans?
Yes, Citizens Bank offers graduate student loans. They understand the financial demands of advanced education and provide loan options to help cover the costs. The loan amounts and terms can vary based on the specific graduate program. Visiting the Citizens Bank website or contacting their customer service for detailed information is recommended.
Can I apply for a Citizens Bank student loan online?
Yes, you can apply for a Citizens Bank student loan online. Their website provides a convenient platform to submit your application, gather necessary documents, and track the progress of your loan. Online application can often streamline the process and save time compared to traditional paper applications.
References:
- Citizens Bank. (2024). Private student loans. Retrieved July 30, 2024, from Citizens Bank.
- Citizens Bank. (2024). Student loan FAQs. Retrieved July 30, 2024, from Citizens Bank.
- Citizens Bank. (2024). Graduate student loans. Retrieved July 30, 2024, from Citizens Bank.
- Citizens Bank. (2024). Parent student loans for college. Retrieved July 30, 2024, from Citizens Bank.
- Citizens Bank. (2024). Refinance student loans & consolidate student debt today. Retrieved July 30, 2024, from Citizens Bank.
- Citizens Bank. (2024). Student loan rate and repayment table. Retrieved July 30, 2024, from Citizens Bank
- Hanson, M. (2024). Student loan debt statistics [2023]: Average + total debt. Education Data Initiative. Retrieved July 30, 2024, from EDI.
- Sallie Mae. (2023). How America pays for college 2023. Sallie Mae.
