College Ave vs Citizens: Private student loans compared

College Ave excels for flexible in-school payment options and borrowers without existing bank relationships, while Citizens rewards existing customers with rate discounts and offers competitive rates for strong credit profiles. If federal aid falls short, this guide shows how to close the gap safely and choose based on your credit, budget, and repayment goals.

For many families, the choice between College Ave vs Citizens comes down to prioritizing payment flexibility against banking relationship perks. Both lenders are top-tier options that can help bridge the funding gap when savings and federal aid aren’t enough, without risking family credit health or overpaying on interest.

In this guide, you will learn how these two major lenders stack up regarding interest rates, repayment terms, fees, and borrower protections. By the end, you’ll be able to compare College Ave vs Citizens on rates, fees, terms, eligibility, and borrower benefits—and choose the right fit for your credit profile and budget.

When private student loans make sense

Before applying for private student loans, it is crucial to exhaust all federal options first. Students should complete the FAFSA to access grants, work-study, and federal student loans. Federal student loans generally offer fixed rates and income-driven repayment plans that private lenders typically do not match.

However, federal loan limits are often lower than the total cost of attendance. For the 2025-2026 academic year, dependent first-year undergraduates are capped at specific borrowing limits that may leave a funding gap for tuition, room, and board. This is where private loans from lenders like College Ave and Citizens serve a vital purpose.

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.”

When comparing private options to fill this gap, three primary cost drivers matter most: the interest rate (fixed vs. variable), the loan term length, and in-school payment choices. Borrowers with strong credit scores—or students with creditworthy cosigners—can often qualify for competitive rates that make financing this gap manageable. By understanding these factors, families can secure necessary funding while keeping future debt burdens under control.

College Ave vs Citizens: Quick comparison

To help you make an informed decision quickly, the table below provides a side-by-side view of the key features, rates, and terms offered by both lenders.

Data current as of May 2025. Sources: College Ave Student Loans rate disclosures, Citizens Bank Student Lending page.

This comparison reveals that while both lenders offer competitive rates and zero origination fees, College Ave provides slightly more variety in loan terms and in-school repayment plans. Citizens, however, offers a distinct advantage for families who already bank with them through loyalty discounts.

Interest rates: Fixed vs variable options

The interest rate is the single biggest factor determining the total cost of a student loan. Both College Ave and Citizens offer choice between fixed and variable interest rates, but the right choice depends on your financial philosophy and market conditions.

Fixed interest rates remain the same for the entire life of the loan. This provides predictability, as your monthly payment will never change. This is often the safer choice for students and parents who want to lock in a specific cost and avoid surprises, especially for long-term repayment plans.

Variable interest rates may start lower than fixed rates but can fluctuate monthly or quarterly based on market benchmarks (like the SOFR index). While this can save money in the short term if rates drop or stay low, it introduces risk if rates rise significantly over the coming years.

According to College Ave’s rate disclosures as of May 2025, borrowers with excellent credit scores and shorter repayment terms typically qualify for the lowest advertised rates. Similarly, Citizens offers its most competitive rates to borrowers with strong credit histories and existing banking relationships. It is important to remember that the advertised rates shown are reserved for the most creditworthy applicants, often requiring a cosigner with a high credit score.

Fees: What each lender charges

When comparing private student loans, it is just as important to look at what you don’t pay as what you do. Fortunately, both College Ave and Citizens are borrower-friendly when it comes to standard loan fees.

According to College Ave and Citizens disclosures as of May 2025, neither lender charges an origination fee. This is a significant saving compared to federal Direct PLUS loans, which charge an origination fee of over 4% for disbursements between October 1, 2024 and September 30, 2025 as reported by StudentAid.gov. This means 100% of the money you borrow goes directly to the school to cover tuition and expenses.

Both lenders also have policies against prepayment penalties. You can pay off your loan early or make extra payments at any time without incurring a fee, which is a critical strategy for reducing total interest costs. However, borrowers should be aware of late fees. If a payment is missed, both lenders typically charge a late fee (often a percentage of the unpaid amount or a flat fee) and a returned payment fee for insufficient funds. Always check your specific loan agreement for the exact dollar amounts regarding late payments.

Loan amounts and repayment terms

Flexibility in how much you borrow and how long you take to pay it back allows you to tailor a loan to your specific budget. Both lenders offer high borrowing limits, typically allowing you to borrow up to 100% of the school-certified cost of attendance, minus other financial aid received. According to lender disclosures as of May 2025, the minimum loan amount is generally $1,000 for both, making them suitable for covering small gaps or funding an entire semester.

Where they differ is in repayment term options. According to lender disclosures as of May 2025, College Ave offers terms of 5, 8, 10, and 15 years. This inclusion of an 8-year term is unique and allows borrowers to strike a balance between aggressive repayment and manageable monthly payments.

Citizens typically offers terms of 5, 10, and 15 years. Choosing a shorter term (like 5 years) will result in higher monthly payments but significantly less total interest paid. Conversely, a 15-year term lowers the monthly obligation but increases the total cost of the loan. Selecting the right term is a key part of your broader repayment strategy.

Eligibility and cosigner requirements

Qualifying for a private student loan usually relies heavily on credit history and income. Since most undergraduate students have limited credit files, applying with a creditworthy cosigner is standard practice. This is a primary concern for parents who want to help their children but worry about the long-term impact on their own credit.

Both College Ave and Citizens look for borrowers or cosigners with good to excellent credit scores (typically mid-600s or higher), stable income, and a healthy debt-to-income ratio. U.S. citizenship or permanent residency is generally required for the primary borrower or the cosigner.

A critical feature for families to compare is cosigner release. This policy allows the primary borrower (the student) to apply to remove the cosigner from the loan after meeting specific requirements, absolving the parent of financial responsibility.

According to Mark Kantrowitz, student loan expert, “Cosigner release is a valuable feature offered by some private lenders, rewarding responsible repayment.”

According to College Ave’s disclosure as of May 2025, borrowers can apply for cosigner release after making 24 consecutive, on-time full principal and interest payments. Citizens requires 36 consecutive, on-time payments as of May 2025. In both cases, the student must meet the lender’s credit and income criteria on their own at the time of the request. For families prioritizing financial independence, College Ave’s shorter timeline may be a deciding factor. For more details on protecting family credit, review our guide to cosigning student loans.

Ready to see if you qualify? Compare offers from College Ave, Citizens, and other top lenders in minutes. Prequalification uses a soft credit check, so your score won’t be affected. Compare rates from 8+ lenders

In-school payment options and flexibility

How you manage your loan while in school has a massive impact on your balance after graduation. Interest accrues daily from the moment the loan is disbursed. If you make no payments while in school, that interest is capitalized (added to your principal balance), meaning you end up paying interest on interest.

According to College Ave’s disclosure as of May 2025, they are known for offering extensive flexibility here. They provide four distinct options:

• Full Deferment: No payments until after graduation (most expensive option).
• Fixed Pay: Pay a flat $25 per month while in school to offset some accruing interest.
• Interest-Only: Pay only the interest charges each month to prevent balance growth.
• Full Principal & Interest: Start full repayment immediately (saves the most money).

Citizens also offers in-school payment choices, typically focusing on immediate interest-only payments or full deferment. While both allow you to defer payments, choosing to pay even a small amount—like College Ave’s $25 option—can keep the habit of repayment active and slightly reduce the capitalization impact without the burden of a full interest payment.

Borrower benefits and incentives

Beyond rates and terms, specific borrower benefits can add value to your loan. Both lenders offer an autopay discount. According to lender disclosures as of May 2025, enrolling in automatic payments reduces your interest rate by 0.25% with both College Ave and Citizens. This is an easy way to lower costs and ensure on-time payments.

Citizens distinguishes itself with relationship rewards. According to Citizens Bank as of May 2025, if you or your cosigner have an existing qualifying account with Citizens Bank, you may be eligible for a loyalty discount of 0.25%. This can be stacked with the autopay discount for a total potential rate reduction of 0.50%, which is a significant advantage for current Citizens customers.

College Ave focuses its benefits on the user experience and educational resources, offering a highly streamlined digital platform and access to scholarship sweepstakes. While they may lack the banking relationship discount, their focus on loan customization often provides value through tailored repayment structures.

Application process and customer experience

The application experience for private student loans has become increasingly digital and user-friendly. Both College Ave and Citizens offer online applications that can be completed in minutes.

Crucially, both lenders offer prequalification tools. This allows you to check your estimated interest rates and eligibility with a soft credit pull, which does not impact your credit score. This is a vital step for shopping around safely.

College Ave is a fintech lender, meaning their entire process is designed for speed and mobile access. According to College Ave as of May 2025, decisions are often instant (within 3 minutes), and the interface allows you to toggle terms and see how they affect your monthly payment in real-time. Citizens combines the stability of a traditional bank with a modern digital application. While their process is also fast, they offer the added benefit of physical branches for families who prefer face-to-face customer service or have complex banking questions.

Which lender is right for you?

Both College Ave and Citizens are reputable lenders with strong track records, but they serve slightly different needs. Use this framework to decide which one aligns best with your financial situation.

Choose College Ave if:

• You want the most flexible in-school payment options (like the flat $25/month plan).
• You prioritize a shorter timeline for cosigner release (24 months).
• You want a highly customizable loan term (e.g., choosing exactly 8 years).
• You prefer a 100% digital, fast-paced application experience.

Choose Citizens if:

• You or your family already bank with Citizens (to capture the 0.25% loyalty discount).
• You prefer the stability and customer support of a traditional brick-and-mortar bank.
• You are looking for Multi-Year Approval, which can simplify borrowing for future years.
• You have excellent credit and want to stack discounts for the lowest possible rate.

Consider Both if:

• You have good-to-excellent credit and want to find the absolute lowest rate. Since rates vary based on your specific credit profile, prequalifying with both is the smartest move.

If neither of these lenders feels like the right fit, or if you were denied due to credit issues, explore our private student loans hub for more options.

Ready to see your personalized rates? Compare offers from College Ave, Citizens, and other top lenders in minutes. Prequalification uses a soft credit check, so your score won’t be affected. Compare Private Student Loan Rates

Frequently asked questions

Is College Ave or Citizens better for student loans?
It depends on your needs. College Ave is generally better for borrowers seeking flexible repayment terms and faster cosigner release. Citizens is often better for existing customers who can utilize the loyalty rate discount.

Does Citizens Bank offer student loan discounts?
Yes. According to Citizens Bank as of May 2025, Citizens offers a 0.25% interest rate discount for borrowers enrolled in autopay and an additional 0.25% loyalty discount for borrowers with a qualifying existing account.

Can I get a student loan without a cosigner from College Ave or Citizens?
It is possible but difficult for most undergraduates. Both lenders require established credit and steady income. Students without these typically need a creditworthy cosigner to qualify.

Does College Ave offer cosigner release?
Yes. According to College Ave as of May 2025, College Ave allows you to apply to release your cosigner after making 24 consecutive, on-time full principal and interest payments, provided you meet their credit requirements at that time.

How long does it take to get a student loan from Citizens?
The online application takes about 15 minutes, and conditional approval can be immediate. However, the full certification and disbursement process typically takes 2–3 weeks, depending on your school’s timeline.

Choosing between College Ave and Citizens ultimately depends on whether you value payment flexibility or relationship rewards. Both lenders provide safe, transparent funding options to help you achieve your educational goals.

• College Ave stands out for: Highly customizable loan terms, a flat $25 in-school payment option, and a shorter 24-month cosigner release period.
• Citizens stands out for: Loyalty discounts for existing customers and the stability of a traditional banking institution.
• Both offer: Zero origination fees, autopay discounts, and coverage up to 100% of the cost of attendance.
• Next step: Since both offer prequalification with no credit impact, check your rates with both to see which offers the better deal for your specific profile.
• Remember: Always exhaust federal student loans and scholarships before turning to private borrowing.

You have the tools to make a smart financial choice. By comparing your options and borrowing responsibly, you can close your funding gap confidently.

Ready to compare your options? See personalized rates from 8+ private student loan lenders in minutes. Prequalification is fast, free, and won’t impact your credit score. Compare Private Student Loan Rates Now

References and resources

For further research and verification of loan details, consult the following resources:

• StudentAid.gov – Official information on federal student loans and aid.
• CFPB Paying for College – Tools and guides for making informed financial decisions.
• College Finance Private Student Loans Guide – Comprehensive overview of private lending.
• Understanding Student Loan Interest Rates – Deep dive into how rates affect your total cost.
• Official Lender Sites: College Ave Student Loans and Citizens Bank Student Lending.