Ascent vs Citizens: Private student loans compared

Ascent vs Citizens comes down to credit history and flexibility: Ascent suits independent borrowers or those without strong credit thanks to outcomes-based loans, while Citizens fits families with solid credit who want multi-year approval and relationship discounts. Both lenders offer competitive rates, but they serve very different borrower profiles.

For many families, the gap between federal financial aid and the total cost of attendance is a stressful reality. Private student loans are designed to bridge this gap, but choosing the right lender is critical to managing long-term costs. While Citizens Bank brings the stability and perks of a traditional major bank, Ascent operates as a specialized fintech lender focused on accessibility and unique borrower benefits.

In this guide, you will learn how rates, eligibility criteria, cosigner policies, and unique features compare between these two top-tier lenders. We will break down the specific borrower profiles each lender serves best, ensuring you have the data needed to choose the most cost-effective option for your education.

By the end, you’ll be able to determine which lender matches your credit profile, understand total borrowing costs, and identify the application path that fits your timeline.

When private student loans make sense

Before comparing specific lenders like Ascent and Citizens, it is vital to understand where private loans fit in the broader college financing landscape. Private student loans should generally be considered a supplement to, not a replacement for, federal financial aid.

Students and families should always complete the Free Application for Federal Student Aid (FAFSA) first. This unlocks access to federal grants, work-study programs, and federal student loans. Federal loans typically offer protections that private loans do not, such as income-driven repayment plans and potential loan forgiveness options. You can learn more about these options in our federal student loans guide or by reviewing our comprehensive FAFSA guide.

However, federal loan limits are often lower than the total cost of attendance. When savings, scholarships, and federal aid fall short, private loans fill the funding gap. According to Mark Kantrowitz, financial aid expert, “Private loans can be a good option when federal loans don’t cover the full cost of attendance.”

Once you have determined that additional funding is necessary, the goal shifts to finding the most affordable private option. Qualified borrowers—or students with creditworthy cosigners—can often secure private loans with interest rates that rival or beat federal Direct PLUS loans, making this comparison essential for financial planning.

Ascent vs Citizens: Quick comparison

To help you make a quick assessment, the table below highlights the core differences between Ascent and Citizens. This overview focuses on the metrics that most directly impact your wallet and your repayment flexibility.

Source: Ascent and Citizens lender disclosures (accessed October 2024)

As the table illustrates, both lenders offer competitive terms without origination fees. The primary structural differences lie in repayment term flexibility and cosigner release policies. Ascent generally offers a wider variety of term lengths and a faster path to cosigner release, while Citizens offers lower minimum loan amounts and the convenience of multi-year approval.

Ascent vs Citizens: Interest rates and APR comparison

Interest rates are the most significant factor in the total cost of a loan. Both Ascent and Citizens use creditworthiness to determine the Annual Percentage Rate (APR) offered to borrowers. This rate includes both the interest charged and any fees, though neither lender charges origination fees, making the APR effectively equal to the interest rate.

According to Citizens Bank lender disclosures as of October 2024, fixed APRs are 5.99% - 15.00% and variable APRs are 6.98% - 15.69%. These rates include applicable discounts. Citizens is particularly strong for existing customers; they offer a 0.25% interest rate reduction for enrolling in autopay and an additional 0.25% loyalty discount if you or your cosigner have a qualifying account with Citizens Bank. This can result in significant savings over the life of the loan.

Ascent offers competitive rates that vary based on the specific loan product. According to Ascent’s lender disclosures as of October 2024, fixed APRs for their cosigned and credit-based loans are 2.89% - 15.31%, with variable rates of 3.99% - 15.40%. Ascent provides a standard 0.25% autopay discount. Notably, rates for Ascent’s “outcomes-based” loans (for students without cosigners) are typically higher than their cosigned options to account for the increased risk to the lender.

When choosing between fixed and variable rates, consider your risk tolerance. Variable rates may start lower but can increase if market benchmarks rise, potentially increasing your monthly payment. Fixed rates provide stability, ensuring your payment amount never changes. For a deeper dive into how these structures work, review our guide to private student loans.

To get the best possible rate from either lender, applying with a creditworthy cosigner is usually necessary. A higher credit score and lower debt-to-income ratio signal less risk to the lender, resulting in a lower interest rate offer.

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Eligibility requirements: Who qualifies

Determining eligibility is the first hurdle in the application process. While both lenders require borrowers to be enrolled in an eligible degree-granting institution, their approach to credit requirements differs significantly.

Citizens Eligibility:
Citizens operates like a traditional bank. According to Citizens Bank’s underwriting guidelines as of October 2024, they generally require borrowers (or their cosigners) to have a minimum credit score of roughly 660 or higher. There is also a minimum income requirement, typically around $24,000 per year for the primary borrower or cosigner. Applicants must be U.S. citizens or permanent residents, and international students can apply if they have a creditworthy U.S. citizen cosigner.

Ascent Eligibility:
Ascent stands out for its flexibility. According to Ascent’s eligibility requirements as of October 2024, their standard cosigned loans have requirements similar to Citizens, with minimum credit scores generally in the mid-600s and income requirements around $24,000 annually. However, Ascent offers a unique “Non-Cosigned Outcomes-Based” loan. This option allows juniors and seniors who are U.S. citizens or permanent residents to qualify based on their GPA (usually 2.9+), major, and graduation date, even if they lack a credit history or income.

According to Betsy Mayotte, student loan expert, “Private loans can make sense for students who have strong credit or a creditworthy cosigner.” This remains the standard path for securing the lowest rates. However, Ascent’s outcomes-based model provides a vital alternative for independent students who cannot provide a cosigner but still need funding to finish their degree.

Both lenders require the school to be Title IV accredited. Enrollment status requirements vary; Citizens generally requires at least half-time enrollment, while Ascent has options for students enrolled less than half-time in certain programs.

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Cosigner policies and release options

Because most undergraduates have limited credit history and income, the vast majority of private student loans involve a cosigner. A cosigner agrees to take legal responsibility for the loan if the student borrower fails to pay. This reduces risk for the lender and typically unlocks lower interest rates.

While adding a cosigner helps secure the loan, keeping them on the loan indefinitely can strain family finances and debt-to-income ratios. This is where cosigner release becomes a critical feature. This policy allows the borrower to remove the cosigner from the loan agreement after meeting specific repayment criteria.

Ascent’s Policy:
According to Ascent’s loan terms as of October 2024, borrowers can apply to release their cosigner after making just 12 consecutive, on-time full principal and interest payments. The borrower must also meet income and credit requirements at the time of the request to prove they can handle the debt independently.

Citizens’ Policy:
According to Citizens Bank’s cosigner release policy as of October 2024, borrowers must make 36 consecutive, on-time principal and interest payments before they are eligible to apply for release. Like Ascent, Citizens requires the primary borrower to meet credit and income standards at the time of application.

Practically, this means a parent cosigning an Ascent loan could potentially be off the hook two years earlier than with a Citizens loan. For families planning to buy a home or retire, reducing this debt exposure quickly can be a significant advantage. However, borrowers should remember that release is not automatic; you must apply, and you must demonstrate sufficient income to take over the loan entirely.

Loan amounts and borrowing limits

Understanding how much you can borrow is essential to ensuring your tuition bill is fully covered. Both lenders adhere to the standard rule that your total financial aid (including loans) cannot exceed the school’s certified Cost of Attendance (COA).

Ascent Loan Limits:
According to Ascent’s borrowing limits as of October 2024, minimum loan amounts start at $2,001. The maximum amount is generally capped at the school’s COA minus other aid received. For their outcomes-based non-cosigned loans, there is an annual cap of $20,000. Ascent also enforces an aggregate (lifetime) loan limit, which is typically $200,000 for undergraduate students and higher for graduate students.

Citizens Loan Limits:
According to Citizens Bank’s loan terms as of October 2024, the lender offers a lower minimum loan amount of $1,000, which is helpful for students who only need to cover a small gap, such as books or fees. Like Ascent, the maximum annual limit is the COA minus other aid. Citizens has aggregate borrowing limits as well: the lifetime limit is $150,000 for undergraduates and up to $350,000 for graduate degrees (including healthcare and law).

It is important to borrow only what is strictly necessary. While you can borrow up to the full cost of attendance, limiting your loan to tuition and essential expenses will save you thousands of dollars in interest over the life of the loan.

Repayment terms and in-school options

The repayment term you choose determines your monthly payment and the total interest you will pay. Generally, a longer term lowers your monthly bill but increases total interest costs, while a shorter term saves money but requires higher monthly payments.

Repayment Term Options:
According to Ascent’s repayment options as of October 2024, the lender offers exceptional flexibility with terms of 5, 7, 10, 12, 15, or 20 years. This wide range allows borrowers to fine-tune their monthly budget. Citizens offers a more standard selection of 5, 10, or 15 years.

In-School Repayment:
Both lenders provide options for how to handle payments while you are still in school. Making payments during school prevents interest from capitalizing (being added to your principal balance), which keeps your total debt lower.

Ascent offers:

• Deferred: No payments while in school (interest accrues).
• Interest-Only: Pay only the interest charges each month.
• $25 Flat: Pay a fixed $25 per month.

Citizens offers:

• Deferred: No payments until 6 months after leaving school.
• Interest-Only: Pay interest monthly to prevent balance growth.
• Immediate: Pay full principal and interest immediately (often yields the lowest rate).

Both lenders provide a 6-month grace period after graduation before full repayment begins, giving graduates time to find employment.

Fees comparison: Origination, late fees, and penalties

Hidden fees can increase the cost of borrowing, so transparency is key. Fortunately, private student loans have become more consumer-friendly in this regard compared to the past.

Origination Fees:
Neither Ascent nor Citizens charges an origination fee. According to StudentAid.gov, federal Direct PLUS loans carry an origination fee of 4.228% for disbursements between October 1, 2024 and September 30, 2025. With Ascent and Citizens, 100% of the money you borrow goes directly to your school.

Late Fees:
According to lender fee schedules as of October 2024, Ascent charges a late fee of 5% of the past due amount, with a minimum of $10 and a maximum of $25. Citizens typically charges 5% of the past due payment amount.

Prepayment Penalties:
Neither lender charges a penalty for paying off your loan early. This is standard for private student loans but is a crucial feature. It means you can make extra payments or pay off the entire balance whenever you have the funds, saving on interest without any extra cost.

Returned Payment Fees:
Both lenders will charge a fee for insufficient funds (NSF) if a payment bounces, typically ranging from $15 to $25 depending on the lender’s current policy and state laws.

Unique features and benefits

Beyond rates and terms, Ascent and Citizens differentiate themselves through unique perks that cater to their specific audiences.

Ascent’s Unique Features:
Ascent is built with the student experience in mind. Their standout feature is the 1% Cash Back Graduation Reward. Students who graduate and meet specific criteria can receive 1% of their initial loan principal back as a cash reward—a nice bonus for completing your degree. Additionally, Ascent invests heavily in student success, offering free resources like career coaching, internship search tools, and financial literacy courses.

Citizens’ Unique Features:
Citizens leverages its banking infrastructure to offer Multi-Year Approval. This is a major convenience for families. Once approved for a loan in your first year, you may be pre-approved for future years of funding without undergoing the full hard credit inquiry and application process again. This streamlines financing for the remainder of your degree. Furthermore, Citizens provides Relationship Discounts (0.25%) for borrowers who have a checking or savings account with the bank, rewarding customer loyalty.

These features highlight the difference in philosophy: Ascent focuses on the student’s journey and outcomes, while Citizens focuses on banking convenience and relationship management.

Application process and timeline

Both lenders offer a modern, digital-first application process, but the experience varies slightly.

The Process:
Both Ascent and Citizens allow you to check your rates online in minutes using a “soft” credit pull. This prequalification step shows you potential interest rates without impacting your credit score. If you proceed, you will complete a full application, which triggers a hard credit inquiry.

Documentation:
Be prepared to upload proof of identity (driver’s license or passport), proof of enrollment, and income verification (pay stubs or tax returns) for you and your cosigner.

Timeline:
Citizens, being a large bank, has a highly automated system. Approvals can happen very quickly, sometimes within minutes for qualified applicants. Ascent also processes applications quickly, though their outcomes-based loans may require additional verification of transcripts or GPA, which can add a few days to the process.

Disbursement:
Once approved and certified by your school, funds are sent directly to the college. This usually aligns with the school’s tuition due dates. For Citizens’ Multi-Year Approval, requesting funds for the next semester is a simple administrative step rather than a new application.

Customer service and borrower experience

Once the loan is signed, your relationship with the lender lasts for years. The quality of customer support matters.

Ascent Support:
Ascent is an online-only lender. Support is available via phone and email. They are known for having a user-friendly online dashboard and a helpful, educational approach to support. Because they specialize solely in student loans, their representatives are often well-versed in the specific nuances of college financing.

Citizens Support:
Citizens offers phone and email support, but they also have a network of physical bank branches in many states. For families who prefer sitting down with a banker to discuss their finances, this in-person access is a unique advantage. Their mobile app is robust, allowing you to manage student loans alongside other Citizens banking products.

In terms of reputation, both lenders are established and generally well-regarded. However, experiences can vary. Borrowers interested in reading complaints or detailed feedback can check the CFPB Consumer Complaint Database for recent data.

Pros and cons summary

Here is a quick summary of the strengths and weaknesses of each lender to help you finalize your choice.

Ascent Pros:

• Outcomes-based option for students without credit/cosigner
• Fast cosigner release (after 12 or 24 months)
• 1% cash back graduation reward
• Flexible repayment terms (up to 20 years)

Ascent Cons:

• Online-only (no physical branches)
• Outcomes-based loans have lower limits and higher rates
• No multi-year approval feature

Citizens Pros:

• Multi-year approval simplifies borrowing for 4 years
• Relationship discounts for existing bank customers
• In-branch support available in many regions
• Lower minimum loan amount ($1,000)

Citizens Cons:

• Generally requires a cosigner or strong credit history
• Longer timeline for cosigner release (36 months)
• Fewer repayment term options (5, 10, 15 years)

Which lender is right for you

Based on the comparison, the choice between Ascent and Citizens largely depends on your specific financial situation and priorities.

Choose Ascent if:

• You are an independent student (junior or senior) with good grades but no cosigner.
• You have a cosigner but want to release them from the loan as quickly as possible (12-24 months).
• You need a specific repayment term length (like 7 or 12 years) to fit your budget.
• You value student-centric perks like cash back rewards and career coaching.

Choose Citizens if:

• You are a parent or student with strong credit seeking a streamlined, multi-year funding solution.
• You already bank with Citizens and can take advantage of the loyalty rate discount.
• You prefer the security and accessibility of a traditional brick-and-mortar bank.
• You only need to borrow a small amount (between $1,000 and $2,000).

Consider Both If:
You have a creditworthy cosigner and are purely looking for the lowest interest rate. Since both lenders offer soft credit checks, you should prequalify with both to see which one offers you the better APR.

Frequently asked questions

Can I get an Ascent student loan without a cosigner?
Yes, Ascent offers “Non-Cosigned Outcomes-Based” loans for eligible college juniors and seniors. Approval is based on your GPA, major, and graduation date rather than credit history. However, rates may be higher than cosigned options.

Does Citizens offer cosigner release?
Yes, Citizens allows you to apply for cosigner release after making 36 consecutive, on-time principal and interest payments. You must also meet their credit and income requirements at the time of the request.

Which has lower interest rates, Ascent or Citizens?
It depends on your unique credit profile. Both lenders offer competitive rates that are fairly similar for highly qualified borrowers. The best way to know for sure is to prequalify with both, as this does not impact your credit score.

Can I apply for a Citizens student loan if I’m not a Citizens Bank customer?
Yes, you do not need to be an existing banking customer to apply for a student loan. However, existing customers with qualifying accounts are eligible for a 0.25% loyalty rate discount.

Can I refinance my Ascent or Citizens loan later?
Yes, private student loans can be refinanced after you graduate. If your credit score improves or market rates drop, you can refinance with a different lender to secure a lower rate. Learn more in our student loan refinancing guide.

Choosing between Ascent and Citizens ultimately comes down to flexibility versus convenience. Ascent offers unmatched flexibility for students with thinner credit files and those prioritizing rapid cosigner release. Citizens provides a streamlined, convenient experience for families with established credit who want to secure funding for their entire college journey with minimal hassle.

Key takeaways:

• Compare rates: Both lenders offer competitive rates; always prequalify with both to see your personal offer.
• Cosigner strategy: If releasing a cosigner early is a priority, Ascent is the clear winner.
• Convenience: If you want to avoid re-applying every year, Citizens’ multi-year approval is a major benefit.
• Federal first: Always exhaust federal grants and loans before turning to private options. Refer to our FAFSA guide to ensure you haven’t missed any opportunities.

The best loan is the one that fits your budget today and your financial goals tomorrow. Take the time to check your rates and read the fine print before signing.

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References and resources

• StudentAid.gov – Official source for federal student loan information.
• CFPB Paying for College – Tools and resources for making informed financial decisions.
• College Finance: Private Student Loans Guide
• College Finance: Federal Student Loans Guide
• College Finance: FAFSA Guide
• College Finance: Scholarships Guide