What you need to know:
- The pros and cons of Citizens Bank student loan refinance
- Citizens Bank student loan refinance eligibility requirements
- How Citizens Bank rated in Student Loan Planner’s user survey
Citizens Bank is one of the oldest and largest financial institutions in the United States. The company offers a variety of services, including student loan refinancing and advertises annual average savings of $3,036 with its Citizens Bank Education Refinance Loan.
Let’s take a closer look at their student loan offerings in our Citizens Bank Student Loan refinance review.
Citizens Bank student loan refinancing
The Citizens Bank Education Refinance Loan allows borrowers to refinance and consolidate all of their private and federal undergraduate or graduate school loans into one affordable payment.
Citizens Bank’s student loan refinance product also gives borrowers the opportunity to lower their monthly payment, fix a variable rate or remove a cosigner.
| Item | Amount |
|---|---|
| Fixed APR | 3.45-9.02% |
| Variable APR | 2.19-8.92% |
| Terms | 5, 7, 10, 15 and 20 years |
| Loan amount | $10,000 to $500,000 |
*As of December 17, 2019
Pros and Cons
Pros
- Lower rates: Citizens Bank offers student loan refinance discounts of up to 0.50%. You could also fix your variable rate loan so you’ll know what your payment will be each month.
- Flexible, lower payments: Citizen Bank’s flexible terms of 5, 7, 10, 15 or 20 year loans could help decrease your monthly payments.
- Cosigners are allowed and can be released: Citizens Bank allows borrowers to use a cosigner when they refinance their student loans. You can also apply for cosigner release once you’ve made 36 consecutive on-time payments of principal and interest.
- Penalty-free prepay: Citizens Bank will not charge you a prepayment penalty if you opt to pay more than your monthly payment or pay off your student loan ahead of time.
- Deferments: Citizens Bank offers deferred student loan payments until six months after graduation.
Cons
- No in-school payments: You must be out of school and be making current payments on your student loans to refinance with Citizens Bank.
- Strong credit history required: Citizens Bank does not specify a minimum credit score, but the company does require borrowers to have a significant credit history to refinance (hence why it allows cosigners).
- Minimum gross annual income: Borrowers also need to earn at least $24,000 annually (or have a combined salary of $24,000 with a cosigner) to be eligible for Citizens Bank student loan refinance.
Eligibility requirements
Citizens Bank’s student loan refinance program is only available to borrowers who are not currently in school. Other student loan refinance eligibility requirements include:
- Borrowers have to be a U.S. citizen, permanent resident or resident alien with a valid U.S. Social Security number, living in the United States. Resident aliens have to apply for student loan refinance with a cosigner who is a U.S. citizen or permanent resident.
- You must have at least $10,000 in student loans to refinance.
- If you have an Associate’s degree or no degree, you must have made at least 12 qualifying payments after you left school.
Application process
If you use Citizen Bank’s Calculate My Rate tool, you’re only subject to a soft credit pull, which does not affect your credit score. A hard credit pull and inquiry will show up on your credit report when you fill out a full application.
You’ll be asked to submit your standard contact and personal information when you seek your Citizens Bank student loan refinance rate — name, address, date of birth, social security number, email address and phone number.
You’ll also have to provide the following:
- Highest degree attained
- Total amount you want to refinance
- Total current monthly payments
You should also be prepared to provide income verification. If you work a standard W2 job, you can submit your two most recent pay stubs that are within 60 days of your application submission. If you have a new job and haven’t been paid yet, Citizens Bank will request an acceptance letter or contract that confirms your new employment and includes your salary.
Citizens Bank student loan refinancing for parents
Citizens Bank also has a student loan refinancing program for parents who are paying for their children’s education. You need to have been part of the original loan, either as primary borrower or cosigner, to be eligible to refinance with Citizens Bank.
| Item | Amount |
|---|---|
| Fixed APR | 3.45-6.99% |
| Variable APR | 2.19-6.89% |
| Terms | 5, 7, 10, 15 and 20 years |
| Loan amount | $10,000 to $500,000 |
*As of December 17, 2019
Eligibility requirements
If you’re a parent, your child does not need to have graduated for you to be eligible to apply for the Citizens Bank Education Refinance Loan for Parents program. Additional requirements include:
- Parent must have at least $10,000 to refinance
- Borrowers must be U.S. citizens, permanent residents or a resident alien with a valid U.S. social security number
- The primary applicant has to be the primary borrower or cosigner on the loan that is going to be refinanced
Remember, Citizens Bank requires a strong credit history — if you don’t have one you may be better served refinancing your student loan with a lender with less stringent requirements.
Application process
When you apply, you’ll have to submit the same information students do. Citizens Bank Education Refinance Loan for Parents program application process can be done in three steps:
- Complete the online application
- Select your rate and terms (5, 7, 10, 15 or 20 years)
- Sign and accept your loan documents (electronically) upon approval
You’ll also be asked for your total monthly income and monthly rent or mortgage payment.
Who should refinance their student loan with Citizens Bank?
Your current financial situation will likely dictate if Citizens Bank student loan refinance is the right choice for you. Based on what we’ve seen, it’s best for borrowers who:
- Have a cosigner
- Are seeking a low monthly payment
- Need flexibility when it comes to their loan’s length or payment term
Citizen Bank’s student loan refinance program also appears to be a good fit for low to mid-level earners. In Student Loan Planner’s survey of borrowers who refinanced their student loans with Citizens Bank, 61% earned $80,000 annually or less.
Citizens Bank’s student loan refinance product also placed 4th out of 8 in Student Loan Planner’s survey. If you’re looking for a more well-rounded lender with strong aesthetics, Citizens Bank might be lacking in that department.
Deciding whether or not Citizens Bank is the right lender for refinancing your student will depend on what factors matter most to you. If the financial aspect is your sole concern, Citizens Bank could work well for you. If you are not eligible or want to compare offers from other lenders, check out our top-rated refinancing companies and earn a cash back bonus.
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