Citizens Bank Student Loans offer a variety of loan options and potential discounts, but require a solid credit history and often a cosigner. Federal Direct Unsubsidized Loans provide more flexible repayment options and borrower protections, making them a potentially better choice for those seeking stability and long-term support.
| Attribute | Citizens Bank Student Loans | Federal Direct Unsubsidized Loans |
|---|---|---|
| Interest Rates (Fixed and Variable) | Undergraduate loans: 3.49%-14.99% (fixed), 4.95%-15.43% (variable); Graduate loans: 3.49%-13.62% (fixed), 4.95%-14.03% (variable); Parent loans: 5.99%-10.60% (fixed), 5.97%-9.59% (variable); Law school loans: 3.49%-13.57% (fixed), 4.95%-13.70% (variable); Student loan refinancing: Fixed APR: 5.90-11.38%, Variable APR: 6.18-12.37%; Medical residency refinancing: fixed rates are between 5.63% and 10.55% while variable rates start between 5.88% and 11.39%. | Fixed interest rates determined by the U.S. Department of Education. For loans disbursed on or after July 1, 2024, and before July 1, 2025, the interest rates are 6.53% for undergraduate students and 8.08% for graduate students. Interest rates do not depend on the borrower's credit score. |
| Loan Amounts Available | Loan amounts range from $1,000 to $225,000. For undergrad and graduate degrees, the max loan amount is $225K, or total cost of education, whichever is lower. MBA and law students can borrow up to $300,000. Medical and dental students may have access to up to $400,000, depending on their degree. Citizens Bank student loan refinancing: Loan amounts range from $10,000 – $300,000 (Bachelor's degree or below); $10,000 – $500,000 (Graduate degree). | Determined by the student's cost of attendance, less any other financial aid received. Annual loan limits for undergraduates range from $5,500 to $12,500 per year, depending on the year in school and dependency status. Graduate students can borrow up to $20,500 per year. |
| Repayment Options and Flexibility | Five repayment terms (5, 7, 10, 15, and 20-year options). Repayment options include immediate, interest-only, or deferred during school. A six-month post-graduation grace period is available. | Include Standard, Graduated, Extended, and Income-Driven Repayment (IDR) plans. IDR plans include Income-Based Repayment (IBR), Pay As You Earn (PAYE), Saving on a Valuable Education (SAVE), and Income-Contingent Repayment (ICR). Repayment options are flexible and can be adjusted if the borrower's income changes. Borrowers can switch between different repayment plans as needed. |
| Eligibility Requirements | Solid credit history and at least $12,000 in annual income if applying alone. Nearly all undergraduate borrowers need a creditworthy co-signer. Refinancing requires: U.S. citizenship or permanent residence (or a qualifying co-signer), $24,000 minimum annual income, bachelor's degree or higher, and current residence in the United States. Applicants must be enrolled at least half-time in a degree-granting program at an eligible institution. | Include being a U.S. citizen or eligible non-citizen, having a valid Social Security number, being enrolled at least half-time in an eligible degree or certificate program, and maintaining satisfactory academic progress. |
| Fees (Origination, Late Payment, etc.) | No origination, application, or disbursement fees, and no penalty for early payoff. Late fees: 5% of payment amount for payments not made within 15 days of the due date. | Include an origination fee, which is a percentage of the loan amount. For loans disbursed on or after October 1, 2020, and before October 1, 2024, the origination fee is 1.057%. There are no prepayment penalties. To avoid fees, borrowers should make payments on time and avoid defaulting on the loan. |
| Cosigner Options and Release | Cosigner release is available after 36 consecutive on-time payments. Call (888) 201-6505 to apply for cosigner release. | Cosigners are not an option. The loan is based on the student's creditworthiness, not a cosigner. |
| Deferment and Forbearance Policies | Academic deferment, military deferment, forbearance (up to 12 months for economic hardship), medical residency deferment, and post-active duty deferments are available. | Available for borrowers experiencing financial hardship, unemployment, or other qualifying situations. Deferment allows a temporary postponement of loan payments, while forbearance allows a temporary reduction or postponement of loan payments. Borrowers should contact their loan servicer to discuss their options. |
| Loan Servicing Quality and Support | Citizens Bank partners with Firstmark Services for servicing. Dedicated phone number for student borrowing (866-999-0077). General banking customer service available Monday through Friday from 7 a.m. to 10 p.m. ET, and on weekends from 9 a.m. to 6 p.m. ET. | Handled by various loan servicers contracted by the U.S. Department of Education. Borrowers can choose their servicer. Loan servicer's customer support varies depending on the servicer. Borrowers can contact their servicer by phone, email, or online chat. |
| Discounts and Rewards Programs | 0.25% interest rate discount for applicants with a qualifying Citizens Bank account. An additional 0.25% discount for setting up automatic payments. | There are no specific discounts or rewards programs. |
| Application Process and Approval Time | Fully digital loan application program. It takes about 2 minutes to get started with a rate quote, and it's valid for 30 days. You can prequalify with a soft credit check and get a rate quote in minutes. Multi-Year Approval option available. | The application process involves completing the Free Application for Federal Student Aid (FAFSA). Approval time varies, but it typically takes a few weeks to process the application and receive a financial aid award letter. Documentation needed for the application includes a valid Social Security number, driver's license, and tax information. |
| Loan Consolidation Options | Not available | Available through the Federal Direct Loan Program. Consolidation allows borrowers to combine multiple federal loans into a single loan with a fixed interest rate. |
| Borrower Protections and Benefits | Death and disability discharge available. Citizens Scholarship (no-essay application that could result in up to $15,000 toward tuition). | Include disability discharge, death discharge, and closed school discharge. Borrowers may also be eligible for loan forgiveness programs, such as Public Service Loan Forgiveness (PSLF). |