Citizens provides private student loans to those who need help covering the gap between what they have and what they need for school. They offer single- or multi-year loans for undergraduate or graduate degrees. The online application process is simple and quick. In-person help is also available in almost a dozen states. If you’re thinking about applying for a private student loan, consider the following about what Citizens has to offer.
Citizens’ Pros and Cons:
Pros:
Cons:
Founded in 1828, Citizens Bank was built on the principle that it succeeds only when its customers succeed. They are part of Citizens Financial Group, one of the oldest and largest financial services firms in the U.S. Giving back to the community is also a large part of the company’s values. They invest their time, resources, and energy on their Citizens Helping Citizens initiative that supports communities in which they live and work. To help fund a college education, students can apply for a Citizens Bank Student Loan. The company also offers a Citizens Bank Student Loan for Parents. Guardians of students enrolled at least half-time in a degree-granting program at an eligible institution can apply. Private student loans can be used for tuition, books, and more. Citizens also offers more than just student loans. They provide mortgages, underwrite vehicles, issue credit cards, and administer checking accounts. Refinancing federal and private student loans is another option available at Citizens.
With a B rating, Citizens has earned fairly good marks from the Better Business Bureau (BBB); however, there’s room for improvement. This score is based on several factors, which includes a company’s:
The rating also takes into account if there are any known advertising, licensing, or government issues that need to be addressed. Overall, Citizens is a reputable and well-established business. Keep in mind that although their BBB rating isn’t an A+, many of the complaints aren’t about their student loans.
With various repayment options, Citizens offers the kind of flexibility that many borrowers value. For example, you can defer paying on your loan for up to eight years while enrolled in school. Citizens also provides competitive fixed and variable rates and offers refinancing options to fit your monthly budget. The following benefits may also apply to you:
When a company has been around as long as Citizens, it’s bound to have some potential drawbacks come to light. For example, borrowers may feel a lack of personalized service since it’s such a large organization. The business also doesn’t focus solely on students’ needs, as it offers many different financial services.
Here are some things to think about when thinking about applying for a loan from Citizens:
Given Citizens’ considerable advantages, you may be seriously considering becoming a customer. But before you borrow from Citizens — or any other private lender — you should first exhaust another funding option: federal student loans.
As their name suggests, federal student loans are funded by the U.S. government. They are overseen by the Department of Education and administered in conjunction with colleges and universities as part of the nation’s broader federal financial aid system. Once borrowers leave school, their federal loans are “serviced” by outside companies that manage the repayment process.
Why should you go with federal loans before considering private options such as Citizens? First and foremost, federal student loans are far easier to access because they’re designed to help aspiring students afford school.
You won’t need a strong credit history or income, and there’s no cosigner required: The government isn’t looking for these indications of your ability to repay. Rather, you’ll need to get into the school of your choice and complete the Free Application for Federal Student Aid (FAFSA), sending it to your school. Generally, federal loan money is offered based on a student’s financial need rather than academic merit or economic stability.
However, no matter your financial circumstances, there are other great reasons first to explore your federal financial aid options. As a federal institution, the Department of Education can offer options and protections that private lenders can’t. Here are some of the distinct advantages of federal student loans:
With unique benefits such as these, federal loans should be the primary option for virtually every student loan borrower. But if federal loans don’t cover all of your school-related expenses, a private student loan can be an excellent supplement to the federal money you receive.
That’s where lenders like Citizens can truly deliver, empowering students to focus on their studies by funding their educational pursuits. Like tens of thousands of students every semester, if you find that your federal financial aid isn’t sufficient, a private student loan could be the perfect solution.
If you’ve exhausted all federal aid options, it’s time to consider if Citizens is right for you. Are you a student who still needs more money to cover college expenses? Or a parent who wants to help their child further their education without an undue burden? A Citizens Bank Private Student Loan may be the answer.
While there may not be a Citizens Bank branch near you, agents are always available to help online via live chat, by email, or over the phone. The simple application process can help you get the funding you need quickly. Citizens also simplifies things further if you apply for multi-year loan approval. And you don’t have to worry about being locked into anything; there’s no pressure to borrow everything you qualify for. It’s OK if your plans change.
Citizens could also be a good option if you or your co-signer already has a qualifying account with this financial institution. Citizens rewards loyalty, so you can receive a 0.25% discount off your loan’s interest rate right from the start with one of these qualifying accounts:
At some point, you’ll need to start paying off your student loans, so it’s important to know what Citizens has to offer when it comes to repayment and refinancing. Payments can be made while a student is enrolled in school or deferred until six months post-graduation.
Borrowers choose the length of their repayment period, depending on their budget. The term can be for five, 7, 10, 15, or 20 years. Citizens doesn’t assess any penalties for prepayment, paying more than the monthly payment, or paying off the entire loan amount early.
To simplify the payment process, you’ll most likely want to refinance your student loans. Citizens offers refinancing for both students and parents with no extra fees to do so. When you refinance, you combine loans into a new loan, which helps you to:
You can save time and money when you refinance your private and federal student loans with Citizens. Their borrowers save an average of $3,168 per year after refinancing. To be eligible for refinancing, you must have at least $10,000 in student loans.
If a student has left school without a degree or an associate degree, the loans can’t be refinanced until at least 12 payments have been made. The maximum amount to refinance for a bachelor’s degree or below is $300,000. The limit for graduate degrees is $500,000. The application for a Citizens Bank Education Refinance Loan is fast and easy. It can be completed online in just 15 minutes.
Taking all the different factors into account, Citizens may or may not be the right fit for you. At CollegeFinance.com, we help students assess all of their loan options. With our reviews, you can make a more informed decision about financial aid. Need further advice about student loans, scholarships, or refinancing? Explore more of our articles and guides today.