It doesn't get any more traditional than Citizen's Bank. This institution is an established choice that ranks as one of the country's largest lenders among student loans. Founded in 1828, its reputation for straight forward solutions has grown among college aged borrowers.
Of course, the bank offers more stability over lenders that are not regulated as closely. This means increased stability and less stress about where the funds are coming from. Its prominence also means a no-hassle approach to constantly fluctuating terms or rates that could become costly as students reduce their debts.
Citizens Bank offers unique borrowing options, including one of the highest loan limits available. That consistently puts Citizens Bank on our list of the Top Places To Refinance Student Loans.
Remember, when shopping for student loans, always compare your options. We recommend Credible, where you can compare Citizen's Bank against other lenders. Plus, College Investor readers can get a $750 bonus when they refinance with Credible a loan over $100,000, or $200 for a loan less than $100,000. That's a great deal! See how Citizens Bank compares!
Quick Summary
- Student loan refinancing and private student loans
- One of the highest loan balances available for refinancing
- Generous loan terms that make it a top place to borrow
Citizens Bank Student Loans Details | |
|---|---|
Product Name | Citizens Bank Student Loan |
Min Loan Amount | $10,000 |
Max Loan Amount | $500,000 |
APR | As low as 2.34% APR |
Rate Type | Variable and Fixed |
Loan Terms | 5, 7, 10, 15, 20 year |
Promotions | Up to a $750 gift card from Credible |
Who Can Refinance At Citizens Bank?
Citizens Bank is a traditional bank and lender - and many of their terms align with that. To get the best rates and terms, you should have an excellent credit score. Citizens Bank is a nationwide lender, so no matter where you're going to school in the United States, you can use Citizens Bank.
People with lower credit scores may have trouble securing a loan through Citizen's Bank. Although the bank does not disclose the actual minimum credit score, it is implied to be 700 to 750. For that reason, know your credit score before even attempting an application with the bank.
If you want to improve your score, learn how student loans impact your credit score.
Rates and Fees
A great feature for the bank is lack of fees. Unlike some programs, Citizen's does not charge a fee for the application or processing. Even accessing your credit score is covered for no additional charge. There is also great news for anyone looking to finish out their loan early. The no-fee approach to repaying a loan before its due date encourages students to throw as much as they can towards payments, which means less money spent on interest overall.
As of September 1, 2019, Citizens Bank was offering the following rates on it's loans:
- Variable Rate: 2.34% to 9.33% APR
- Fixed Rate: 3.45% to 9.49% APR
The maximum rate you will pay on a variable rate loan is the maximum of 21.00% APR or the Prime Rate + 9.00%.
Remember, rates and terms are subject to change. While we do our best to maintain an up-to-date review with accurate information, your best bet is to check out Citizens Bank and confirm everything before applying.
Payment Schedule
5, 10, 15, and 20 year loans are available. Keep in mind that 5 year loans offer the best rates - especially when it comes to a variable rate loan. An average of 5.7% for the most qualified applicants is below many online lenders. If a 15 or 20 year loan is your only option, consider a comparison of other student loan programs.
If you need to go longer than 5 years, we recommend that you stick to a fixed rate loan.
Special Discounts
There are some great features that could lead to lower rates - up to a 0.50% APR savings on your loans.
If you have an account at Citizens Bank or has ever had a student loan in the past, the APR may be lowered by 0.25%. Automatic deductions each month can result in APRs being lowered by up to 0.25%.
Repayment doesn't start until six months after graduation. When applying, a co-signer with a good credit history may also lead to lower payment minimums or decreased rates.
Easy To Reach
Sometimes, you just have to talk to a representative. Emergencies or unexpected questions happen, even in the middle of the night. There are several ways to contact the bank including an 800 phone number, email, and regular mailing address.
Important Fine Print Notes
We all know how hard it can be to find a job right out of college, but nobody prepares for losing their job after years in their respective field. Citizen's Bank offers no unemployment clause. That means interest will continue and payments are still expected on regularly scheduled dates.
Also, there is no disability discharge as well. This could be a factor if you're disabled and cannot make student loan payments.
If you require a cosigner for your loans, you should also consider getting life insurance in case of death. That way your cosigner is not left on the hook should something happen to you.
Good for Certain Borrowers
Citizen's Bank is not a choice for everyone, but it's a viable option for people with good credit. The no-fee application process doesn't punish potential borrowers. If you have great credit and want to refinance a high balance loan, Citizens Bank is one of the best choices available.
On the other hand, the lack of maneuverability for life's challenges makes it less than optimal for anyone who does not anticipate a steady job for years to come.
Remember, always shop around for your loan. Check out Credible and see how Citizen's Bank stacks up against other lenders. And don't forget that College Investor readers get up to a $750 bonus when they refinance through Credible. Citizen's Bank could be the best choice, and you get a bonus!
Citizens Bank Student Loan Refinancing
- Rates and Fees - 80
- Application Process - 80
- Customer Service - 70
- Products and Services - 90
Overall
Summary
Citizen’s Bank is not a choice for everyone, but it’s a viable option for people with good credit. The no-fee application process doesn’t punish potential borrowers. On the other hand, the lack of maneuverability for life’s challenges makes it less than optimal for anyone who does not anticipate a steady job for years to come.
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him here and here.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.
Ann Steidel says
They disbursed half the loan to the college for the first semester and they based my payment on the full amount! So my payment is DOUBLE what it should be! That’s great, they keep half the money and charge you based on the full loan. They also said they would call the school and only pay the balance of what was owed. They didn’t do that, they just sent half of the loan amount and now I am overpaid at the school — more interest for them. I have complaint in at the Attorney General’s so now it has escalated to the “Office of the Chairman” at Citizen’s Bank. They keep saying someone will call me, but no one ever does and here I sit with a DOUBLE PAYMENT due! I have told them I don’t want to take the other half of the loan.
Robert Farrington says
First, you can always file a complaint with the CFPB at consumerfinance.gov/complaint
Second, if you received the second half of the loan, you can immediately send it back as a payment and then you won’t have it any longer.