Business Insider's personal finance team compared Citizens Bank student loans to the best private student loans and found it to be an industry leader thanks to competitive APRs, fewer fees than other lenders, and high refinancing limits.
Citizens Bank also offers unique features such as multi-year approval and a cosigner release option. Scholarship, grant, and federal student loan opportunities should be explored first when it comes to financing your education. If you still need help covering educational expenses, a private student loan from Citizens Bank is worth considering.
Citizens Bank Student Loans Overview
Introduction to Citizens Bank
Citizens Bank may be a good student loan lender for you if you have a strong credit score, especially if you want the best rates and the convenience of submitting just one application to secure funds for multiple school years. However, if your credit isn't so great, Citizens Bank has a Student Credit Builder program that can help you start building your credit score up while still in school and can make it easier to get affordable financing later in life.
Citizens Bank Student Loans Key Features
Citizens Bank is best for borrowers who want a brick-and-mortar lender (although you can apply online). Many student loan companies are online only and don't offer the advantage of talking to a loan officer face-to-face, unlike Citizens. Additionally, borrowers who want to square away their financing for several years will like Citizens Bank's multi-year approval option.
If your credit or financial situation makes it difficult to apply for a loan, you can apply with a cosigner, which may reduce your interest rate and the overall cost of your loan. According to the company's website, you'll need a "reasonably strong credit history" to qualify for a Citizens Bank Undergraduate Student Loans student loan.
You can contact Citizens Bank Undergraduate Student Loans' customer support by phone or by visiting a branch.
Types of Student Loans Offered by Citizens Bank
Citizens Bank Undergraduate Student Loans
Citizens Bank sets itself apart from competitors by including a multi-year approval feature for its undergraduate student loans.
Multi-year approval allows borrowers to secure funding for multiple years of school without undergoing a hard credit inquiry in future years. Borrowers will be presented with the overall amount they qualify to borrow for all of their school years combined. International students can't take advantage of this perk.
Citizens Bank Graduate Student Loans
Citizens Bank Graduate Student Loans are similar to the undergraduate ones, though the graduate loans come with slightly higher interest rates.
The lender offers specialized graduate student loans for students pursuing an MBA, medical degree, law degree, or dental school. Graduate student loans from Citizens Bank also come with the option of applying with a cosigner to boost your likelihood of getting approved.
Citizens Bank Parent Loans
Parent student loans from Citizens Bank are presented as an alternative to federal PLUS loans. Parent student loans from Citizens Bank are for parents or guardians who will assume the entire responsibility of repaying the student loan, which differs from cosigning onto a student loan.
The student whose expenses will be paid for must be a U.S. citizen or permanent resident and be enrolled at least half-time in an academic program at a Citizens-participating school.
Citizens Bank Student Loan Refinancing
Business Insider ranks Citizens Bank as one of the best student loan refinance companies. Citizens Bank has a very high maximum amount of up to $750,000 for refinancing student loans. If you have a substantial amount of student loan debt, it may be easier to refinance here than with other lenders. However, it has a minimum refinance amount of $10,000, which is higher than some other student loan companies. Citizens Bank also requires that you have a Bachelor's degree or higher and be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security number to be eligible for student loan refinancing.
When you refinance your student loans with Citizens Bank, you have the option to consolidate them as well. This means you could turn multiple loan payments into one monthly payment. This helps simplify payments and could reduce your interest rates. Citizens Bank offers a 0.25% loyalty customer discount and a 0.25% automatic payment discount. Taking advantage of these discounts means you'll pay less in interest in the long haul.
Additionally, when you refinance your student loans with Citizens Bank, your repayment terms will range from five, seven, 10, 15, or 20 years. To help you decide which loan terms are best for you, Citizens Bank has an online student loan calculator tool to easily review your repayment options before signing your loan agreement.
5.50% - 16.12% variable and 3.99% - 15.61% fixed
Undisclosed late fee
Undisclosed
Up to $150,000
- No origination fees or prepayment penalties
- Co-signed loans available
- Rate discount for qualifying borrowers
- Multiple options for repayment term lengths
- Solid minimum interest rate
- Multi-year approval available
- Low minimum loan amount
- Late fee
- No option for prequalification
- Credit check required
- Loan minimum is $1,000, maximum is $150,000
- Five, 10, and 15-year repayment term lengths
- Undisclosed late fee
- 0.50% rate discount if you or your cosigner have a qualifying Citizens Bank account at the time you submit a complete application and you sign up for automatic payments
- Multi-year approval allows you to see how much you're eligible to borrow for all the years you are in school when you first apply for a loan
- Loans are originated by Citizens Bank, N.A.
Compare Citizens Bank Student Loans
4.64% - 15.99% variable and 3.54% - 15.99% fixed (with AutoPay discount)
N/A
Undisclosed
Minimum of $1,000
- No origination fees, prepayment penalties, or late fees
- Solid APR
- Several options for repayment term length
- Quick application process
- Credit check required
SoFi is an excellent lender for borrowers who want a competitive APRs. It's also a great lender for those who don't want to worry about fees.
SoFi Undergraduate Student Loans- Apply through your computer or mobile device
- Customer service available via phone, mail, and social media
- Five, seven, 10, or 15 year repayment terms available
- Loan minimum of $1,000, maximum up to 100% cost of attendance
- Loans are originated by SoFi Lending Corp. or an affiliate
4.54% - 17.99% variable and 3.47% - 17.99% fixed (with AutoPay discount)
late payment of 5% of the amount due, capped at $25
mid-600s
Minimum of $1,000
- No prepayment or origination fees
- International students eligible with an eligible cosigner
- Low APR
- Multiple options for repayment term length
- Many ways to contact customer support
- Credit check required
- Late payment fee
College Ave is a great lender for borrowers who want multiple options for repayment term lengths and are after a low APR. College Ave also offers many options for contacting customer support.
College Ave- Apply through your computer or mobile device
- Customer service available via phone, text, email, and live chat
- Five, eight, 10, or 15 year repayment terms available
- Loan minimum of $1,000, maximum up to 100% cost of attendance
- Repayment options available:
- Deferred: No payments for up to six months after leaving school
- Interest only: Only make payments on the loan's interest while in school
- Partial payments: Pay $25 per month while in school
- Full repayment immediately: Start making full payments while still in school
- Loans made through Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC
5.09% - 14.73% variable and 3.39% - 15.19% fixed (with AutoPay discount, varies by plan)
None
Fair to Excellent
$2,001 - $200,000 ($200,000 aggregate total)
- N/A
- N/A
Ascent provides a variety of repayment term lengths on its student loans and low minimum interest rates on fixed-rate loans. You may also qualify for a 1% cash-back reward that will be paid to you after graduation.
Ascent- Loan amounts available: $2,001* minimum, up to $200,000 for undergraduates, and $400,000 for graduates
- *The minimum amount is $2,001 except for the state of Massachusetts. Minimum loan amount for borrowers with a Massachusetts permanent address is $6,001.
- Repayment options available:
- Deferred: No payments for up to nine months after leaving school
- Interest only: Only make payments on the loan's interest while in school
- Partial payments: Pay $25 per month while in school
- Immediate Repayment:Begin making full payments (principal + interest) on the loan right away
How to Apply for Citizens Bank Student Loans
Basic Eligibility Criteria
U.S. citizens or permanent residents are eligible for a student loan, and international students can apply with a creditworthy citizen or permanent resident cosigner. You'll also need to be enrolled at least half-time at a four-year Title IV institution and have no previous student loan defaults.
Credit Score Requirements
Citizens Bank says you need a "reasonably strong credit history" to get a loan. This isn't a defined minimum, but you should expect to have your credit in good shape with a credit score of at least 660 if you want to borrow from Citizens Bank.
Cosigner Requirements and Benefits
Having a cosigner will often improve the student borrower's chance of approval, can help qualify for better interest rates, and can help begin building a credit history for the student.
Cosigners must meet the following requirements to cosign a student loan with Citizens Bank:
- The cosigner has U.S. citizenship or permanent residency
- The cosigner is at least the age of majority in their state of legal residence, usually 18, 19, or 21
- The cosigner has a valid Social Security number
- The cosigner meets the lender's minimum credit requirements
Step-by-Step Application Guide
- Complete an application on Citizens Bank's website. You must enter your email address, name, phone number, education level, Social Security number, and income history. You can't apply for prequalification to see rates and terms before sending an official application.
- Sign the loan agreement and get your new loan. After you sign the loan agreement, you may get your new loan soon after with Citizens Bank. Remember, refinancing a loan means replacing your old loan with a new one.
- Work loan payments into your budget. Figure out how to adjust your budget to fit in your new loan payments. Make sure you have enough money to cover all of your financial responsibilities.
Required Documentation
When you apply for a loan with Citizens Bank, you'll need the following documents:
- Valid passport/identification card
- Letter of employment and three recent pay stubs
- Income and expenditure statement if self-employed
- TIN certificate
- Proof of address (issued within the last three months)
- Invoice/quotation for loan request (if applicable)
Citizens Bank Student Loan Interest Rates and Fees
Current Interest Rates
The rates on undergraduate student loans from Citizens Bank vary based on your loan amount, type, term, and repayment plan. APR ranges are 5.50% - 16.12% variable and 3.99% - 15.61% fixed. Variable rates are subject to change during repayment while fixed-rate student loans will remain the same during the life of the loan.
Fee Structure and Additional Costs
Citizens Bank Undergraduate Student Loans won't charge origination fees, application fees, or prepayment penalties, but you may have to pay a late fee. You're eligible for a loyalty discount of up to 0.50% if you or your cosigner have a qualifying Citizens Bank account at the time you submit a complete application and sign up for automatic payments.
Repayment Options
Citizens Bank offers three repayment options on your student loans: immediate, interest-only, and deferred. Depending on your financial situation, you may prefer one option over the other.
Deferred payments will be more expensive than interest-only or immediate payments because interest will accrue while you're in school and during your grace period.
This interest will then be capitalized, which means it will be added to your loan balance after periods of nonpayment, including forbearance, deferment, and your grace period. This will increase your overall loan principal, and you'll then pay interest on that higher amount, increasing the total cost of your loan.
Immediate
- Pay your loan balance plus interest each month while in school and during a six-month grace period
- Highest in-school payments
- Lowest overall cost
- Build credit while you're in school with on-time payments
Interest-only
- Pay the loan's interest monthly while in school and during a six-month grace period
- Moderate in-school payments
- Build credit with on-time payments while you're in school
Deferred
- Don't make payments until after the six-month grace period following graduation expires
- Unpaid interest accrues
- Interest is capitalized at the end of the grace period
Citizens Bank Student Loans Pros & Cons
Citizens Bank Student Loan Pros
- No origination fee or prepayment penalty. The absence of these fees will save you money on the overall cost of your loan.
- Low minimum loan amount. Citizens Bank has a loan minimum of just $1,000.
- Payment discount for eligible borrowers. You'll receive a .50% rate discount if you or your cosigner have a qualifying Citizens Bank account at the time you submit a complete application and you sign up for automatic payments.
- Multiple repayment term lengths. The company offers five-, 10-, 15-, and 20-year repayment term lengths — some lenders only offer one.
- Option for multi-year approval. The benefit of multi-year approval is that it allows you to see how much you're eligible to borrow for all the years you are in school when you first apply for a loan
- Competitive APR range.
- High maximum refinance amount allowed. A refinanced loan has a maximum loan amount of up to $750,000.
Citizens Bank Student Loan Cons
- Late payment fee. Citizens Bank has a late payment fee of 5% of the loan payment amount.
- High minimum amount to refinance. The minimum amount you need to refinance your loan is $10,000.
Citizens Bank Student Loan Alternatives
Citizens Bank vs. Sallie Mae
Citizens Bank and Sallie Mae both have five-, 10-, 15-, and 20-year repayment term lengths.
With Sallie Mae, you can be enrolled in school less than half-time, whereas with Citizens Bank, you must be enrolled at least half-time. Citizens Bank Undergraduate Student Loans allow multi-year approval, which is detailed above.
Sallie Mae Student Loan Review
Citizens Bank vs. Ascent Undergraduate Cosigned Credit-Based Loan
Ascent offers seven, 12, and 20-year repayment lengths. You may qualify for a 1% cash-back reward from Ascent that will be paid to you after graduation.
Of both lenders, only Citizens Bank offers student loan refinancing. Citizens Bank allows students to consolidate student loans when they refinance, which streamlines payments into one monthly bill.
Citizens Bank Student Loan Customer Experience
Citizens Bank customers report an overall poor experience with the lender. The lender received 1.2 stars out of five on Trustpilot, although not all reviews are based on experiences with student loan products from Citizens Bank. Alternatively, the lender's mobile app has stellar ratings with 4.8 stars out of five in the Google Play Store and 4.7 stars out of five in the Apple App Store.
Is Citizens Bank Trustworthy?
Citizens Bank is owned by Citizens Financial Group, Inc. Citizens Bank isn't currently rated by the Better Business Bureau. However, its parent company received an A rating. In 2023, Citizens Bank was ordered to pay a $9 million penalty to the Consumer Financial Protection Bureau (CFPB) for a lawsuit over credit card disputes and fraud.
It's important to note that the lawsuit was not regarding student loans, so this doesn't necessarily mean you'll have a bad experience. Remember to read customer reviews and do your own research before taking out a student loan.
Why You Should Trust Us: How We Rated Citizens Bank Student Loans
We rate all student loan products in our reviews and guides on a 1-5 scale. Citizens Bank student loans get an overall rating, which is a weighted average that considers seven different categories, some of which are judged more heavily than others. These include:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths (15% of rating)
- Repayment options while in school (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Read more about how we rate student loans »
Citizens Bank Student Loan FAQs
Citizens Bank student loans have competitive interest rates that vary based on the type of loan and the borrower's credit profile. Check its website for the latest rates.
To apply for a Citizens Bank student loan, apply online through the Citizens Bank website. Follow the step-by-step instructions and submit the required documents.
Yes, you can refinance existing student loans with Citizens Bank. It offers refinancing options for federal and private student loans, potentially lowering your interest rate and monthly payment.
Citizens Bank offers various repayment options, including immediate, interest-only, and deferred plans.
There typically aren't any origination fees or prepayment penalties with Citizens Bank. However, you may incur a 5% late fee for missed payments. Review the loan terms for any additional charges.
