Federal Direct PLUS Loans offer the advantage of potential eligibility for federal loan forgiveness programs and borrowing up to the full cost of attendance. However, they come with origination fees and potentially higher fixed interest rates. Citizens Bank Student Loans offer varied repayment options and no origination fees, but lack federal loan forgiveness eligibility and require good credit or a cosigner.
| Attribute | Citizens Bank Student Loans | Federal Direct PLUS Loans |
|---|---|---|
| Interest Rates (Fixed and Variable) | Fixed APR: 3.24% to 15.60% (graduate loans: 4.24% to 14.10%, parent loans: 5.99% to 10.61%). Variable APR: 4.95% to 16.60% (graduate loans: 5.99% to 15.10%, parent loans: 6.99% to 10.61%). Discounts for automatic payments and loyalty programs may apply. | Fixed interest rates are determined each year for new loans disbursed from July 1 to June 30 of the following year. For Direct PLUS Loans disbursed between July 1, 2025, and June 30, 2026, the interest rate is 8.94%. For loans disbursed between July 1, 2024, and June 30, 2025, the interest rate is 9.08%. Direct PLUS Loans have a higher interest rate compared to Direct Unsubsidized Loans. A 0.25% interest rate reduction may be available for borrowers who sign up for auto-debit. |
| Loan Amounts Available | Up to $225,000 (MBA/Law: $300,000, medical/dental: $400,000). Minimum loan amount: $1,000. Cannot exceed total cost of education. | Borrowers can borrow up to the full cost of attendance minus any other financial aid received. The school determines the cost of attendance. There isn't an aggregate loan limit. |
| Repayment Options and Flexibility | Immediate, interest-only, and deferred repayment options. Repayment terms: 5 to 20 years. Refinancing options: 5, 7, 10, 15, and 20-year terms. | Eligible for standard, graduated, and extended repayment plans. Parent PLUS loans are eligible for the standard repayment plan or other flexible options, such as graduated or extended repayment plans. Income-Contingent Repayment (ICR) is available only if the PLUS Loans are consolidated into a Direct Consolidation Loan. Repayment typically begins within 60 days of full disbursement. However, deferment may be requested. You can change your repayment plan at any time. |
| Eligibility Requirements | U.S. citizens or permanent residents (international students with U.S. cosigner). Enrolled at least half-time in a degree-granting program at a Title IV-eligible institution. Good credit or qualified cosigner. Some sources state a minimum annual income of $12,000 or $24,000 is needed to qualify on their own. Must have attained the age of majority in their state of residence. | Available to parents of dependent undergraduate students and to graduate or professional students. Borrower and student (if Parent PLUS) must be U.S. citizens or eligible non-citizens. Borrower must not have an adverse credit history. The student must be enrolled at least half-time in an eligible degree or certificate program. Completion of the FAFSA form is required. Income and credit scores are not considered. |
| Fees (Origination, Late Payment, etc.) | No application, origination, or disbursement fees. Late payment fees may be charged. No prepayment penalties. | Origination fees are charged on Direct PLUS Loans. For PLUS Loans disbursed on or after October 1, 2020, the origination fee is 4.228% of the loan amount. This fee is deducted from each loan disbursement. No prepayment penalties. Late fees may be applied. |
| Cosigner Options and Release | Cosigner can help qualify for loan and lower interest rate. Cosigner release after 36 consecutive on-time payments of principal and interest. 98% of Citizens Undergrad Booked Loans from 6/1/24 through 9/30/24 were cosigned. | A cosigner (endorser) is not typically required but may be an option if the borrower has an adverse credit history. An endorser is someone who agrees to repay the loan if the borrower fails to do so and cannot be the child on whose behalf the loan is borrowed. |
| Deferment and Forbearance Options | Deferment available while in school at least half-time. Interest accrues during deferment. | Parents can request a deferment while the student is in school. Payments on Graduate PLUS loans are automatically deferred while the borrower is in school at least half-time and during the six-month grace period after leaving school. Interest accrues during deferment and forbearance unless paid. |
| Loan Forgiveness Programs | Does not qualify for federal loan forgiveness programs (PSLF, Teacher Loan Forgiveness). Some states offer private student loan forgiveness for specific professions. | Eligible for Public Service Loan Forgiveness (PSLF) if consolidated into a Direct Consolidation Loan and other requirements are met. Eligible for Income-Contingent Repayment (ICR) plan, which offers forgiveness after 25 years of payments, if consolidated into a Direct Consolidation Loan. Some states offer loan forgiveness programs for specific professions. Federal Direct PLUS loans are eligible for discharge upon the death or total and permanent disability of the borrower. Parent PLUS loans may be discharged upon the death of the student. |
| Customer Service and Support | Dedicated phone number for student borrowing: 866-999-0077. General banking customer service: Monday-Friday (7 a.m. to 10 p.m. ET), weekends (9 a.m. to 6 p.m. ET). Chat Hours: 8:00AM-7:00PM EST Monday-Friday. | Contact the financial aid office at the school for details. |
| Application Process and Approval Time | Online application. Approval: a few days to several weeks (total timeframe: 2-4 weeks). Required documents: personal, school, and financial information. | Complete the FAFSA form. Complete a PLUS loan application at StudentAid.gov. Sign a Master Promissory Note (MPN) at StudentAid.gov. The school's financial aid office administers the application process. A credit check will be performed. Provide the names, addresses, and phone numbers of two references. Provide your driver's license number (if applicable). Direct PLUS Loan applications are available on studentaid.gov starting in late April. The Direct PLUS loan application takes about 15 minutes. Completion of the MPN takes up to 30 minutes. |
| Discounts and Rewards | 0.25% interest rate reduction for automatic payments from a Citizens Bank account. Loyalty discounts for existing customers. Multi-Year Approval available. | Borrowers who sign up for auto-debit may receive a 0.25% interest rate reduction. |
| Loan Consolidation Options | Student loan refinancing available to consolidate multiple loans into a single loan. | PLUS Loans can be consolidated into a Direct Consolidation Loan. Consolidating Parent PLUS Loans into a Direct Consolidation Loan allows access to the Income-Contingent Repayment Plan. |
| Fees | No origination or application fees | Origination fee of 4.228% of the loan amount |
| Loan Forgiveness | Not eligible for federal loan forgiveness | Eligible for PSLF and ICR if consolidated |