Citizens Bank offers private student loan and refinancing options at competitive interest rates, flexible payback arrangements and rate-reduction options. It allows graduates with low incomes to qualify for loans if they have a creditworthy co-signer. But what sets it apart from other lenders is its multi-year approval commitment, where the bank agrees up-front to fund your college costs through graduation.
Citizens Bank Student Loan Review
Updated: September 4, 2023
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At a Glance: Citizens Bank Student Loans
- Citizens Bank
- 3.48%–10.78%Fixed APR Range
- 1.99%–8.39%Variable APR Range
- Up to $150,000Loan Amounts
- Six monthsGrace Period
- Only for some borrowersCo-signer
Citizens Bank — dating back to 1828 and headquartered in Providence, Rhode Island — is one of the country's oldest and largest financial institutions, with approximately $192 billion in assets as of March 2022. Citizens Bank has provided student loans for over 40 years and offers one of the most extensive student loan programs in the United States. Its strong relationships with financial aid officers in colleges across the country can also benefit borrowers.
Citizens Bank provides undergraduate, graduate and medical resident loans, as well as student loan refinancing. It also offers parents and sponsors options for borrowing money to help pay for their children’s education.
To be eligible for a student loan, you must have a good credit history or a creditworthy co-signer. International students must have a qualified co-signer residing in the United States.
At Citizens Bank, you can enjoya 0.25% discount on your interest rate if you enroll in automated payments or are a current customer.
Citizens Bank offers multi-year approval to select applicants, which means you only need to apply once to have all your college years funded. However, if you need to borrow more than $150,000 to fund your education, you may need to look for a different bank. Overall, Citizens Bank's competitive rates, flexible payment options and rate reduction opportunities make it an attractive choice for many.
Pros
- Available in all 50 states
- Soft credit pull
- Calculator that shows detailed fee breakdown
- Multi-year approval
- Loyalty discounts
- Available to international students with a U.S. citizen or permanent resident co-signer
Cons
- No pre-qualification available
- Loan amount caps
- Fixed APR Range: 3.48%–11.34%
- Variable APR Range: 1.99%–6.95%
- Loan Amounts: For undergrad and grad degrees, up to $150,000 or the total cost of education, whichever is lower
- Grace Period: Six months
- Co-signer: Yes
MoneyGeek Breakdown: Citizens Bank Student Loan Details
Citizen Bank Details
Fixed APR |
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Variable APR |
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Loan Types | Undergraduate, graduate, medical residents, parent student, refinancing |
Loan Amounts | Up to $150,000 or the total cost of education, whichever is lower |
Repayment Terms | 5, 10, or 15 years |
Grace Period | Six months |
Co-signer Required | Only for some borrowers |
Time to Receive Funds | Within 3–5 business days, though the total application process runs approximately 2–4 weeks |
Late Fees | 5% fee for payments more than 15 days late |
Prepayment Penalty Fees | No origination, application or prepayment fees; $15 fee for returned or refused payments |
Perks | 0.25% rate discount when enrolled in an automatic payment program; parents save up to 4.228% by combining federal and private parent student loans |
Mobile Application | Yes |
Citizens Bank Student Loan Application Requirements
1
Be enrolled at least part-time in a degree-granting program at an eligible institution.
2
Be a U.S. citizen (or have a U.S. citizen co-signer).
3
Be of legal age in your state of residence (or have an eligible co-signer).
4
Have an established credit history (or a creditworthy co-signer).
5
Have no prior student loan defaults.
6
Have made at least 12 qualifying payments if looking to refinance a student loan.
Is Citizens Bank Right for You?
Comparing fees, loan terms and conditions are critical steps when choosing a student loan. Here MoneyGeek has identified the borrowers best suited to a Citizens Bank student loan.
Type of Student Citizens Bank Is Perfect For
Citizens Bank loans are best for current bank clients, who immediately enjoy a rate reduction.
Citizens Bank is also a suitable option for students with good financial standing who haven’t completed their education and non-U.S. citizens who have a qualifying co-signer. Parents who want to borrow money to pay a portion of their child’s education may also find Citizens Bank’s rates competitive.
Citizens Bank private student loans are an excellent option for applicants with good credit who need funding for the entire term of their education. The bank simplifies the process of applying for financial aid through its multi-year approval option. Borrowers apply once and can obtain subsequent student loans simply by making a request and undergoing a soft credit check.
Who Should Not Choose Citizens Bank
Citizens Bank may not be the best option if you have limited or bad credit unless someone with an excellent credit score is willing to be your co-signer.
If you want to take over your parents’ loan, you may find Citizens Bank’s process complex compared to other lenders. Your parents will need to refinance their loan first and include you as a co-signer.
How to Apply for a Citizens Bank Student Loan
Below, MoneyGeek lists the necessary steps to complete a Citizens Bank student loan application.
1
Fill Out Online Application Form
Unlike other banks and lenders, Citizens Bank does not have any prequalification. The application process takes place entirely online, and you’ll need to provide the following:
- Social Security number
- Proof of income or pay stub less than 30 days old
- Anticipated graduation date, loan amount and academic period for the loan
- Immigration status (for international applicants)
2
Select Rates and Terms
Before submitting your application, you will also need to select your rate and loan terms, including how and when you want to repay the loan.
3
Wait for Approval
Once you have submitted your application, the bank may request additional documents to verify the information you’ve provided. The student lending advisors from Citizens Bank will let you know whether you qualify for their multi-year approval option during this stage.
4
Review Loan Agreement
It’s important to review all the fees and charges you may incur during your student loan’s term. Citizens Bank will also ask you to review and sign an application, promissory note and a self-certification form.
5
Sign Loan Agreement
After reviewing your documents, you will sign the loan agreement through the Citizens Bank platform. Co-signers will also need to sign the document electronically.
6
Receive or Direct Funds
Immediately, or within three to five business days of signing the documents, Citizens Bank will transfer the funds to your school.
7
Make Payments
You can choose between different payment options to pay off your student debt. Note that each will have different interest rates.
- Deferred Repayment: You may choose to pay the principal and interest six months after graduation.
- Interest-Only Repayment: You can make interest-only payments while in school and full payments after graduation.
- Immediate Repayment: You can also pay the principal amount and interest right after graduation if funds are available.
What to Do if You Are Rejected From Citizens Bank
Receiving a loan rejection can be discouraging, but know there are always other options for you. When lenders reject an application, they should provide a basic explanation for their decision. Feel free to give the bank a call and ask why you were denied. You can work on improving the factors that contributed to your rejection before reapplying to Citizens Bank or elsewhere.
If you decide to go with a different lender, thoroughly review the application requirements. Make sure to have all the necessary documents, and improve upon determining factors where you can.
Lastly, aside from student loans, there are several other ways to pay for college. These include financial aid from your school, federal student loans or grants and scholarships.
Frequently Asked Questions About Student Loans
If you’re interested in a Citizens Bank student loan, MoneyGeek has answers to frequently asked questions, including who these loans are best suited for, how long it takes to get approved and others.
What can I use a Citizens Bank student loan for?
Citizens Bank offers private student loans and refinancing options to undergraduate and graduate students and their parents. International students can also consider Citizens Bank if they have a co-signer who is a U.S. citizen.
What credit score do I need for a Citizens Bank student loan?
To apply for a student loan from Citizens Bank, you need a reasonably strong credit history. If you do not meet this qualification, however, you can still apply with a creditworthy co-signer to increase your chances of getting approved.
How long does Citizens Bank take to approve a student loan?
It takes approximately two to four weeks to complete the application process. But once approved, the funds are available immediately or within three to five business days.
Does Citizens Bank have a mobile app?
Yes. Citizens Bank offers a convenient digital solution to customers' banking needs. Current Citizens Bank customers can view their checking and savings accounts, as well as monitor their loan account statements online.
What is the maximum amount I can borrow from Citizens Bank?
With Citizens Bank, students can borrow from a minimum of $1,000 to a maximum of $150,000 or the total cost of education, whichever is lower.
Will applying for a Citizens Bank student loan affect my credit score?
Citizens Bank runs a soft credit pull to determine if you qualify for its loan products. Unlike a hard credit inquiry, a soft credit inquiry will not affect your credit score.
Does Citizens Bank accept co-signers on student loans?
Yes. Citizens Bank encourages having a co-signer to increase your chances of getting approved for the loan and lowering your interest rate.
Can I use a Citizens Bank student loan at my college?
Students attending four-year public and private institutions nationwide may qualify for a Citizens Bank student loan. However, if you are enrolled in a two-year institution, community college or for-profit school, you may need to secure a loan elsewhere.
sources
- Citizens Bank. "Private Student Loans." Accessed March 25, 2022.
- Citizens Bank. "Graduate Student Loans." Accessed March 25, 2022.
- Citizens Bank. "Parent Student Loans." Accessed March 25, 2022.
- Citizens Bank. "Refinance Student Loans." Accessed March 25, 2022.
- Citizens Bank. "Medical Residency Student Loans." Accessed March 25, 2022.
- Citizens Student Loans. "Loan Interest Rate and Fees Loan." Accessed March 25, 2022.
- Citizens Bank. "Multi-Year Loan Approval." Accessed March 25, 2022.
*Rates, fees or bonuses may vary or include specific stipulations. The content on this page is accurate as of the posting/last updated date; however, some of the offers mentioned may have expired. We recommend visiting the card issuer’s website for the most up-to-date information available.
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Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, credit card issuer, hotel, airline, or other entity. Learn more about our editorial policies and expert editorial team.
Advertiser Disclosure: MoneyGeek has partnered with CardRatings for our coverage of credit card products. MoneyGeek and CardRatings may receive a commission from card issuers. To ensure thorough comparisons and reviews, MoneyGeek features products from both paid partners and unaffiliated card issuers that are not paid partners.