Citizens vs Edly comes down to payment structure: Citizens offers traditional fixed or variable rate loans with predictable monthly payments, while Edly uses Income Share Agreements (ISAs) where payments are tied to a percentage of your post-graduation income. Choose Citizens for payment predictability or Edly for income-based protection.
Navigating the gap between federal aid and the total cost of college requires careful consideration of how you plan to repay that debt. In this guide, you’ll learn how rates, eligibility criteria, repayment terms, and borrower protections compare between these two distinct financing models. By understanding the fundamental differences between a traditional bank loan and an income share agreement, you can determine which lender better fits your family’s financial planning goals or your personal career trajectory.
Whether you are a parent looking to protect your retirement savings while helping your child, or a student worried about entering a volatile job market, understanding these options is the first step toward empowered borrowing. We will break down the complex terms into clear comparisons, ensuring you have the information needed to make a confident decision.
Before diving into the numbers, it is essential to understand that Citizens and Edly represent two fundamentally different approaches to higher education financing. This isn’t just a comparison of interest rates; it is a choice between two distinct financial models.
Citizens Bank is a traditional financial institution with a history dating back to 1828. As one of the top private student loan lenders in the country, they operate on a standard lending model: you borrow a specific amount of money and agree to pay it back over a set term with interest. The payments are generally fixed (unless you choose a variable rate), meaning you know exactly how much you owe each month regardless of your income.
Edly, on the other hand, is a fintech company that specializes in Income Share Agreements (ISAs). Under this model, you receive funding for school in exchange for agreeing to pay a fixed percentage of your future gross income for a set period. If you earn a high salary, you may pay back more than you would with a traditional loan. If your income is low or you are unemployed, your payments pause or adjust downward. This model shifts some of the risk from the borrower to the lender.
Citizens typically fits borrowers—or families with cosigners—who have strong credit and want the stability of a defined repayment schedule. Edly is often designed for students who may lack a credit-rich cosigner or those entering fields where starting salaries vary, providing a safety net against low earnings.
To help you quickly assess which option aligns with your financial profile, the table below compares the core features of both lenders. This overview highlights the structural differences between a standard private loan and an income share agreement.
Source: Citizens Bank and Edly disclosures (as of October 2024)
Interpretation: If you value knowing exactly when your debt will be paid off and exactly how much interest you will pay, Citizens offers that certainty. If you are worried about graduating into a recession or an entry-level job with low pay, Edly’s structure ensures your payments never exceed a manageable portion of your paycheck, though you might pay more in total if your career takes off quickly.
The most significant difference between these two lenders lies in how they calculate what you owe. This section breaks down the cost of borrowing so you can evaluate the total repayment scenarios for your specific situation.
Citizens offers standard student loans with either fixed or variable interest rates. According to Citizens Bank, as of October 2024, competitive fixed rates are 5.99% - 15.00% APR, while variable rates are 6.98% - 15.69% APR. Your specific rate is determined by your creditworthiness (or your cosigner’s), the repayment term you choose, and whether you have an existing relationship with the bank.
Borrowers can also benefit from a 0.25% interest rate reduction by enrolling in autopay. Because the interest rate is applied to the principal balance, you can calculate the total cost of the loan before you sign the promissory note (assuming a fixed rate). This transparency is a hallmark of traditional lending, as detailed in our guide to private student loans.
Edly does not charge an interest rate in the traditional sense. Instead, according to Edly, they assign an “Income Share Percentage,” which typically ranges between 2% and 10% of your gross monthly income as of October 2024. This percentage is determined by factors such as your school, your major, and the amount of funding you receive.
Because payments are tied to income, the “cost” of the funding is variable.
According to Jason Delisle, higher education finance expert, “The private market can and does innovate—offering options federal loans don’t, such as variable rates or targeted underwriting.” This innovation allows ISAs to serve students who might be priced out of traditional loans due to credit history.
Edly includes a “payment cap” (often 2-2.5 times the funded amount) to prevent high earners from paying an exorbitant amount, but it is crucial to model out different salary scenarios to understand the potential total cost.
Once you understand the cost, the next step is determining if the lender can provide enough funding to cover your tuition gap. Both options are designed to fill the void left after scholarships, grants, and federal aid are exhausted.
According to Citizens Bank, as of October 2024, the minimum loan amount is typically $1,000. The maximum can go up to the total cost of attendance (minus other aid received), with aggregate lifetime limits reaching as high as $150,000 for undergraduate degrees and up to $350,000 for certain professional graduate degrees (like medical or law school).
A distinct feature of Citizens is their “Multi-Year Approval,” which allows qualified borrowers to secure funding for their entire degree program with a single initial application, simplifying the process for subsequent years.
According to Edly, as of October 2024, funding amounts are generally smaller and more targeted. While specific limits vary by school and program, funding typically ranges from $5,000 to $25,000 per academic year. The amount offered depends heavily on the projected return on investment of your specific degree program.
Because ISAs are often used to cover final tuition gaps rather than the entire cost of attendance, Edly may be better suited for students who need to bridge a smaller shortfall rather than finance four full years of tuition.
Regardless of which option you choose, always remember to maximize your federal borrowing options first. Federal Direct Loans often come with lower fixed rates and more flexible repayment plans. You can learn more in our comprehensive guide to federal loans.
Qualifying for private funding is often the biggest hurdle for students. The criteria for Citizens and Edly differ significantly, reflecting their distinct business models.
Citizens operates like a traditional bank. Approval relies heavily on credit history and debt-to-income ratios.
Edly uses alternative underwriting that focuses less on FICO scores and more on potential.
According to Mark Kantrowitz, financial aid expert, “Most students will need a cosigner to qualify for a private student loan.” While this is true for traditional lenders like Citizens, models like Edly’s are designed specifically to address this barrier.
For a broader look at what lenders require, review our eligibility checklist for private loans.
Before you commit, it’s smart to see what you qualify for. You can check your eligibility with multiple lenders to compare actual rates and terms.
Compare prequalified rates from top lenders including Citizens without affecting your credit score.
Understanding the application workflow can help you plan your financing timeline and ensure tuition bills are paid on time.
The Citizens application process is fully digital and streamlined.
Edly’s process is slightly different due to the nature of the agreement.
How you pay back the money is just as important as how much you get. The repayment structure dictates your monthly budget for years after graduation.
Citizens offers standard term loans. You choose a repayment timeline—typically 5, 7, 10, or 15 years. The shorter the term, the higher the monthly payment, but the less interest you pay overall.
Edly’s repayment is tied to your career success.
For more strategies on managing payments, see our guide to student loan repayment.
Life doesn’t always go according to plan. Understanding the safety nets each lender provides is crucial for long-term financial safety.
Citizens Bank: According to Citizens Bank, as of October 2024, Citizens charges no origination fees, no application fees, and no disbursement fees. However, late fees may apply if you miss a payment deadline.
Edly: ISAs generally do not have “origination fees” in the traditional sense, but the cost of the program is built into the income share percentage. Always read the disclosure to check for any administrative fees.
Citizens Bank: According to Citizens Bank, they offer forbearance options if you face economic hardship or unemployment. However, these are typically granted at the lender’s discretion and are limited in duration (often up to 12 months total over the life of the loan as of October 2024). Interest usually continues to accrue during forbearance.
Edly: Income protection is built directly into the contract. You do not need to “apply” for forbearance if you lose your job; if your income drops below the threshold, your payments automatically stop. This automatic adjustment is a powerful safety feature for students entering volatile industries.
Both lenders generally offer discharge in the event of the primary borrower’s death or permanent disability. Citizens is notable for also offering this protection to the cosigner in certain situations, which is not standard across all private lenders.
Choosing between Citizens and Edly is a decision about risk tolerance and financial philosophy. There is no single “better” option, but there is likely a better option for you.
Choose Citizens Bank if:
Choose Edly if:
According to Sandy Baum, higher education finance expert, “Borrowing is not inherently bad; the question is how much, and under what terms.” By matching the loan terms to your personal financial reality, you transform debt from a burden into a manageable tool for your future.
Citizens Bank lends to students at most Title IV accredited colleges and universities across the U.S. Edly is more selective, partnering with specific schools and programs that have proven track records of employment outcomes. You must check each lender’s website to verify if your specific school is eligible.
If you borrow from Citizens, you are still responsible for your monthly payments, though you may apply for temporary unemployment forbearance. With Edly, if your income is below their minimum threshold, your monthly payment is automatically $0, and you are not considered to be in default.
Legally and structurally, they are different. A loan is a debt obligation with a principal balance and interest rate. An ISA is a contract to share a portion of future income. However, for credit reporting and financial planning purposes, both should be treated as serious financial obligations that affect your debt-to-income ratio.
Yes, in many cases you can refinance an ISA into a traditional private student loan later, provided you meet the credit and income requirements of the refinancing lender. However, you typically cannot “refinance” a traditional loan into an ISA.
Citizens Bank almost always requires a cosigner for undergraduate students to meet credit and income criteria. Edly is designed to be accessible without a cosigner, relying instead on your program of study and future earning potential, though a cosigner may still improve your terms in some cases.
If you qualify for a low fixed rate with Citizens and make consistent payments, the traditional loan is often cheaper for high earners. Edly may cost less for graduates who earn modest salaries or experience periods of unemployment, as the payments adjust downward.
Deciding between Citizens and Edly requires an honest look at your financial present and your professional future. Both lenders offer legitimate, safe pathways to bridge the funding gap, but they serve different needs.
Both options can help you achieve your degree responsibly. The right choice is the one that lets you sleep at night—whether that’s knowing your payment will never change, or knowing it will never exceed what you can afford.
Ready to compare your options? See prequalified rates from Citizens and other top private lenders in minutes—without affecting your credit score.
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