Earnest vs Citizens: Private student loans compared

Short answer: Earnest suits borrowers who want payment flexibility and rate customization; Citizens fits families who need multi-year approval and loyalty discounts. For parents: Citizens offers banking perks and stability. For students: Earnest offers budget-friendly options and unique protections. This guide covers Earnest vs Citizens rates, eligibility, and protections.

By the end, you’ll be able to compare Earnest vs Citizens on rates, eligibility, and protections, estimate your costs, and choose a lender based on your budget and borrowing timeline.

Before diving into private loan applications, it is crucial to exhaust all federal financial aid options first. Federal loans often come with benefits that private lenders cannot match, such as income-driven repayment plans and potential loan forgiveness programs. We recommend reviewing our guide to Federal Student Loans to ensure you have maximized those opportunities before borrowing privately to cover any remaining funding gaps.

However, when federal aid doesn’t cover the full cost of attendance, private student loans become a necessary tool for many families. Choosing the right lender is a significant financial decision that impacts your future monthly payments and total cost of borrowing. Whether you prioritize the ability to skip a payment during tough times or need the certainty of securing funding for your entire degree at once, understanding the nuances between major lenders like Earnest and Citizens is the first step toward a smarter financial future.

How to use this comparison

To help you make an informed decision, this guide compares lenders across several critical categories. Before viewing the data, it is helpful to understand the key terms and features that will affect your loan’s cost and flexibility.

As you review the comparison below, start by looking at the APR ranges to gauge potential costs, but remember that the lowest advertised rates are reserved for the most creditworthy borrowers. Next, check the eligibility requirements to ensure you or your cosigner qualify. Finally, evaluate the protections and flexibility features—like Earnest’s precision pricing or Citizens’ multi-year approval—to see which aligns best with your personal financial goals. Generally, Earnest tends to fit borrowers who want customization and flexible payments, while Citizens tends to fit families who want multi-year approval and banking relationship benefits.

Earnest vs Citizens: Quick comparison

When comparing Earnest vs Citizens, the right choice often depends on whether you prioritize flexible repayment terms or the stability of a traditional banking relationship. The table below provides a side-by-side look at the core features of each lender’s student loan product.

Source: Earnest.com and CitizensBank.com (rates and terms as of January 2025). Note: Rates include autopay discount where applicable.

While fixed rates offer certainty, variable rates can sometimes start lower. According to Mark Kantrowitz, financial aid expert, “Private loans can offer variable interest rates, which may be lower than federal fixed rates initially.” However, borrowers must weigh this potential initial saving against the risk of rates rising over time.

Interest rates and discounts compared

Understanding how each lender determines your rate is key to finding the most affordable option. While both lenders look at credit history, their approaches and discount structures differ significantly.

Earnest uses a “Precision Pricing” model. Instead of just looking at your FICO score, they may consider other financial factors such as your savings patterns, education, and career trajectory. This holistic approach can sometimes result in lower rates for students with thin credit files but strong future potential. Additionally, Earnest allows you to customize your rate by choosing your exact monthly payment and term length, which adjusts the APR accordingly.

Citizens follows a more traditional banking model. Rates are primarily based on the creditworthiness of the borrower and cosigner. If you or your family already bank with Citizens, you may have a distinct advantage due to their relationship discounts.

• Autopay Discounts: According to Earnest.com and CitizensBank.com, both lenders offer a 0.25% interest rate reduction as of January 2025 when you enroll in automatic payments. This is a standard industry benefit that helps ensure you never miss a due date.
• Loyalty Discounts: This is where Citizens shines. As reported by CitizensBank.com, they offer a 0.25% loyalty discount as of January 2025 for borrowers who have an existing qualifying account with Citizens. If you combine this with the autopay discount, you could lower your rate by a total of 0.50%, which is significant over the life of a loan. Earnest does not currently offer banking relationship discounts.

When choosing between variable and fixed rates, consider your risk tolerance. According to Earnest.com and CitizensBank.com as of January 2025, Earnest fixed rates are 2.99% - 12.78% and Citizens fixed rates are 5.99% - 15.00%, providing stability and ensuring your payment never changes. Variable rates may start lower but can increase, potentially raising your monthly payment. For more context on current market trends, check our Private Loans Overview.

Eligibility requirements: Who qualifies?

Even the best interest rates are irrelevant if you cannot qualify for the loan. Private student loans typically have stricter eligibility criteria than federal loans, focusing heavily on credit history and income.

• Credit Score: Both lenders require a good to excellent credit score. According to CitizensBank.com, Citizens generally looks for a minimum FICO score in the mid-600s, while Earnest.com reports that Earnest typically requires a minimum score of 650 as of January 2025. However, approval is not guaranteed by score alone.
• Income Verification: You or your cosigner must demonstrate sufficient income to cover the loan payments. According to Earnest.com and CitizensBank.com as of January 2025, Earnest has a minimum income requirement of $35,000 per year, while Citizens requires $24,000 per year.
• History: Neither lender accepts applicants with recent bankruptcies or accounts in collections. Earnest specifically looks for a history of on-time payments and positive bank account balances.

• Citizenship: Both lenders lend to U.S. citizens and permanent residents. Citizens also lends to international students, provided they have a creditworthy U.S. citizen or permanent resident cosigner. Earnest generally requires the primary borrower or cosigner to be a U.S. citizen or permanent resident (10-year non-conditional card).
• School Eligibility: You must be enrolled at least half-time at a Title IV accredited degree-granting institution to qualify with either lender.

For most undergraduate students, applying with a creditworthy cosigner is essential. According to Mark Kantrowitz, financial aid expert, “Most students will need a cosigner to qualify for a private student loan.” A cosigner with strong credit not only increases your chances of approval but can also significantly lower your interest rate.

Before applying, compare against federal options; prequalification uses a soft credit check and won’t affect your score. Compare rates from 8+ lenders in minutes.

Loan amounts and repayment terms

Planning your financing requires knowing exactly how much you can borrow and how long you’ll have to pay it back. Both Earnest and Citizens offer robust limits, but their term options offer different levels of flexibility.

Both lenders offer high borrowing limits designed to cover the gap left after federal aid.

• Minimum Loan Amount: According to Earnest.com and CitizensBank.com, both Earnest and Citizens typically require a minimum loan amount of $1,000 as of January 2025.
• Maximum Loan Amount: Both lenders allow you to borrow up to the full Cost of Attendance (COA) as certified by your school, minus other financial aid received.
  • Citizens imposes aggregate lifetime limits. According to CitizensBank.com as of January 2025, Citizens generally caps total student debt at $150,000 for undergraduates and higher amounts for graduate degrees (e.g., $350,000 for healthcare professionals).
  • Earnest does not publish a strict aggregate limit, reviewing total debt load on a case-by-case basis relative to your income profile.

The term length you choose determines your monthly payment size and the total interest you will pay.

• Earnest: According to Earnest.com, Earnest offers terms of 5, 7, 10, 12, and 15 years as of January 2025. The inclusion of 7 and 12-year terms allows for “Precision Pricing,” letting borrowers fine-tune their monthly budget.
• Citizens: According to CitizensBank.com, Citizens offers standard terms of 5, 10, and 15 years as of January 2025. While fewer options, these cover the standard short, medium, and long-term repayment strategies.

Choosing a shorter term (like 5 years) will result in higher monthly payments but significantly less interest paid over the life of the loan. A longer term (15 years) lowers your monthly bill but increases the total cost of the loan.

In-school payment options

Managing cash flow while in college is difficult, but making even small payments can save you money later. Both lenders provide options to manage payments while you are enrolled.

• Full Deferment: You can choose to pay nothing while in school and for the grace period after graduation (9 months for Earnest, 6 months for Citizens as of January 2025). However, interest continues to accrue during this time and will be added to your principal balance (capitalized) when repayment begins, increasing your total debt.
• Interest-Only Payments: You pay only the accruing interest each month while in school. This prevents the loan balance from growing and avoids capitalization, keeping your future payments lower. Both lenders offer this option.
• Fixed Payment: You pay a small, set amount (e.g., $25) every month while enrolled. This chips away at the interest slightly and builds good repayment habits. Both lenders support this choice.
• Immediate Repayment: You start making full principal and interest payments immediately after the loan is disbursed. This is the cheapest option overall but requires significant income while studying.

Earnest Flexibility: Earnest is unique in allowing you to switch between these repayment options relatively easily if your financial situation changes, whereas traditional lenders may lock you into your initial choice.

Unique features and benefits

Beyond rates and terms, specific loan features can make one lender a much better fit for your lifestyle. Here is where the differences between a fintech company like Earnest and a traditional bank like Citizens become most apparent.

• Skip-a-Payment: According to Earnest.com as of January 2025, Earnest allows borrowers in good standing to skip one payment every 12 months (interest still accrues). This can be a financial lifesaver during unexpected emergencies or tight months.
• Precision Pricing: As mentioned, you can adjust your loan term to the month to fit a specific budget, rather than being forced into a 10 or 15-year bucket.
• No Fees: Earnest charges zero origination fees, zero late payment fees, and zero prepayment penalties.
• Longer Grace Period: According to Earnest.com, Earnest offers a 9-month grace period after graduation as of January 2025, which is 3 months longer than the industry standard of 6 months.

• Multi-Year Approval: Citizens offers a distinct advantage for freshmen and sophomores. According to CitizensBank.com as of January 2025, with Multi-Year Approval, you can get approved once and secure funding for future years of school without undergoing a hard credit inquiry every single year. This protects your credit score and simplifies the annual financial aid process.
• Loyalty Perks: For families who already bank with Citizens, the 0.25% loyalty rate discount as of January 2025 (on top of autopay) makes them extremely competitive on price.
• Banking Integration: If you use Citizens for checking or savings, having your student loan visible in the same dashboard offers convenient financial management.

Cosigner release and borrower protections

Life is unpredictable. Strong borrower protections ensure that if you face financial hardship, or if you want to relieve your parents of their financial obligation, you have a clear path forward.

Removing a cosigner from the loan is a major milestone for many graduates. It frees up the cosigner’s credit and debt-to-income ratio.

• Earnest: According to Earnest.com as of January 2025, you can apply for cosigner release after making 12 consecutive, on-time payments of principal and interest. You must also meet credit and income requirements on your own.
• Citizens: According to CitizensBank.com as of January 2025, cosigner release is available after 36 consecutive, on-time payments. While a longer timeline, it remains a valuable feature for eventual financial independence.

If you lose your job or face a medical emergency, you may need to pause payments.

• Earnest: According to Earnest.com as of January 2025, Earnest offers robust forbearance options, allowing you to pause payments in 3-month increments for up to 12 months total over the life of the loan. They also offer a “rate reduction” program for borrowers in severe distress, though this is subject to eligibility.
• Citizens: Citizens offers standard academic and hardship forbearance options, typically in 2 or 3-month increments up to a 12-month aggregate limit.

Both lenders offer compassionate discharge policies. In the unfortunate event of the primary borrower’s death or total and permanent disability, the loan is forgiven, and the cosigner is released from the obligation. This matches the protection offered by federal student loans.

Earnest vs Citizens: Which lender is right for you?

Both Earnest and Citizens are top-tier lenders, but they serve slightly different needs. Use the framework below to decide which one aligns with your situation.

Recommendation for Undergrads: If you are a freshman, Citizens’ Multi-Year Approval is a compelling reason to choose them. If you are a senior needing just one more loan, Earnest’s flexible terms might be better.

Recommendation for Grads: Graduate students with established credit histories may find Earnest’s precision pricing offers better rates tailored to their career trajectory.

Remember, always check your FAFSA status and federal loan eligibility first.

Ready to see your rates? Compare personalized offers from Earnest, Citizens, and other top lenders. Compare rates from 8+ lenders (2-minute rate check).

Frequently asked questions

It depends on your specific credit profile. Earnest’s rates are highly competitive for borrowers with good financial habits but thinner credit files, thanks to their alternative data underwriting. Citizens often offers lower effective rates for existing customers who qualify for their loyalty discounts. You should prequalify with both to see which is cheaper for you.

Yes, but it is difficult for most undergraduates. According to Earnest.com and CitizensBank.com as of January 2025, both lenders require good credit and sufficient income (e.g., $35,000 for Earnest, $24,000 for Citizens). Since most students don’t meet these income criteria while in school, a creditworthy cosigner is usually necessary for approval.

Yes, both lenders offer cosigner release. According to Earnest.com as of January 2025, Earnest allows you to apply for release after 12 months of on-time principal and interest payments. According to CitizensBank.com as of January 2025, Citizens requires 36 months of on-time payments. In both cases, the primary borrower must meet credit and income requirements at the time of the request.

Both lenders offer instant conditional approval upon completing an online application, which takes about 10–15 minutes. Final certification from your school can take anywhere from a few days to a few weeks, depending on your university’s financial aid office.

Yes, both lenders offer student loan refinancing. However, refinancing federal loans into a private loan means you lose federal protections like income-driven repayment and forgiveness. For more details, check our Student Loan Refinancing Guide.

Choosing between Earnest and Citizens comes down to a trade-off between flexibility and certainty. Earnest offers modern, borrower-friendly features like skipped payments and custom terms, making it ideal for those who want control over their debt. Citizens offers the security of multi-year approval and loyalty savings, making it a strong choice for families planning for the long haul.

• Earnest is best for borrowers who want payment flexibility, a longer grace period, and a faster path to cosigner release.
• Citizens is best for families seeking multi-year approval and existing customers who can utilize loyalty discounts.
• Both lenders require good credit or a creditworthy cosigner and offer competitive fixed and variable rates.
• Always exhaust federal loan options first before turning to private lenders.
• Prequalify with multiple lenders to compare actual rates—it’s free and won’t hurt your credit score.

Taking on student debt is a big step, but with the right lender, it is a manageable investment in your future. By comparing your options now, you can save thousands of dollars over the life of your loan.

Compare rates from 8+ lenders here (soft credit check won’t affect your score). Also, don’t forget to look for scholarships to reduce your borrowing needs.

References and resources

• Earnest Private Student Loans – Official product details and eligibility.
• Citizens Student Loans – Official product details and loyalty discount information.
• StudentAid.gov – The official source for federal student loan information.
• Private Student Loans Guide – College Finance’s comprehensive overview of private lending.
• Federal Student Loans Guide – Learn about federal borrowing options.
• FAFSA Guide – Step-by-step help for your financial aid application.