Citizens Bank Student Loan for International Students: Refinance, Repayment, Forgiveness

citizens bank student loan

Citizens Bank may be a suitable choice if you need to take out personal financing to pay for your education. You simply need to apply once to receive money for the duration of your academic career because it grants multiyear approvals. You may even be eligible for further interest rate discounts if you are already a Citizens Bank customer.

Citizens Bank Student loan does offer severe qualifying requirements and borrowing limitations, though. Additionally, it lacks a prequalification function, making it impossible to check your eligibility or rates without having an impact on your credit. 

Citizens Bank Overview

One of the biggest retail banks in the nation is Citizens Bank, now simply known as Citizens. The organisation, which has its headquarters in Providence, Rhode Island, runs more than 900 offices and provides student loans to borrowers all around the nation.

Undergraduate and graduate students may borrow private student loans from Citizens Bank, which also provides student loan refinancing. Citizens are one of the only banks that permit borrowers to refinance even if they left school before receiving a degree, in contrast to the majority of refinancing lenders who need applicants to have graduated to qualify for a loan.

There are no application, origination, or disbursement costs for Citizens loans, and there are no prepayment penalties levied by the lender.

Also Read: What are the Student Loan Eligibility Criteria for Studying Abroad?

Details of the Citizens Bank Graduate Student Loan

Only fixed-rate undergraduate loans are provided by Citizens Bank; variable interest rates are not offered. For those who have qualified co-signers, loans are accessible to U.S. citizens, legal permanent residents, and international students.

Terms and Amounts of Loans

Terms for student loans from Citizens range from five to fifteen years. You can borrow up to $150,000 for a minimum of $1,000. The aggregate sum that makes up the higher maximum limit includes all loans from federal student loans as well as loans from other lenders.

Loan Fees and Costs

Undergraduate loans from Citizens Bank include both fixed and variable interest rates. Fixed rates vary from 4.99% to 13.47%. The range of variable interest rates is 4.49% to 13.47%.  There are late costs, but the lender doesn’t impose origination or disbursement fees. Citizens Bank will charge you 5% of the payment amount if you miss a payment.

Also Read: Types of Education Loans for Indian Students

Repayment Options

There are three ways to repay Citizens:

  • Immediate: With the immediate repayment plan, you make complete payments while you’re in school towards the principal and accumulated interest. You’ll pay the least overall repayment if you choose an instant repayment option.
  • Interest-only: If you select an interest-only repayment option, you will only be required to make payments during your time in school and for the first six months after you graduate from college. Since you are paying the interest while you are a student, this plan is less expensive than deferred repayment even though you will pay more altogether than if you followed the immediate repayment plan.
  • Deferred repayment: With deferred repayment, you can postpone making payments until six months after you graduate from college. Since interest starts to accumulate while you are still in school, the deferred repayment option has the most significant overall cost.

Interest Rates

Fixed Interest Rate2.97%–9.15% APR
Variable Interest Rate1.99%–8.90% APR

Also Read: What Are The Pros And Cons Of Paying Off Student Loans Early?

Benefits and Features

Citizens have several distinctive qualities:

  • Discount for loyalty: If you or your co-signer already have a checking, savings, or loan account with Citizens Bank, you may be eligible for a 0.25% interest rate reduction. However, only citizens of Connecticut, Delaware, Florida, Massachusetts, Maryland, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Virginia, and Vermont may open checking or savings accounts with Citizens Bank.
  • Discount for automatic payments: When you set up automated payments, you get a 0.25% interest rate break. Your interest rate can be lowered by up to 0.50% when this reduction is paired with the loyalty discount.
  • Discount for automatic payments: When you set up automated payments, you get a 0.25% interest rate break. Your interest rate can be lowered by up to 0.50% when this reduction is paired with the loyalty discount.
  • Multiple-year approval: When you apply, Citizens Bank will decide whether you qualify for additional loans in the future. If you’re eligible, you can apply for more money during the next academic year without having to submit a new application.
  • Requesting a hardship forbearance from Citizens is possible if you or your co-signer is struggling financially. If your request is granted, you can halt your payments for the time being.

Also Read: 5 Things to Keep in Mind to Apply for an Education Loan

Citizens Bank Refinance Loan

Lenders who specialise in refinancing student loans often only work with candidates who have a bachelor’s degree or higher. The one exception is Citizens Bank, though. Even if you dropped out of school before graduating or only have an associate’s degree, you may be eligible for a loan. You can apply for refinancing once you’ve made 12 qualifying payments since leaving school, whether you have an associate’s degree or none at all.

Variable or fixed interest rates are available on Citizens refinancing loans, and the lender also provides refinancing for parent loans.

  • Terms and Amounts of Loans

To be eligible for refinancing, you must have student loans totalling at least $10,000. If you have a bachelor’s degree or less, you can refinance up to $300,000, and if you have a graduate degree, you can refinance up to $500,000 in total.

  • Loan Fees and Costs

You are eligible for fixed interest rates ranging from 5.39% to 11.88% and variable interest rates ranging from 5.09% to 11.67%. No application, origination, or disbursement costs are charged, but there is a 5% late fee.

  • Payback Options

Repayment terms for students refinancing their loans range from five to twenty years. Your monthly payments will be distributed evenly during the payback term you choose.

Also Read: Can You Get A Study Abroad Education Loan With Low Cibil Score?

Benefits and Features

The benefits of refinancing loans from Citizens Bank include:

  • Existing clients who have a checking, savings, or loan account with Citizens receive a 0.25% interest rate reduction.
  • Automatic payment discount: Borrowers who set up automatic payments save 0.25% on the interest rate.

Also Read: Things To Know About Student Loan Servicers Before Getting An Education Loan

Student Loan Forgiveness Programs by Citizens Bank Student Loan

Americans owe $1.5 trillion in debt from student loans, with the average loan balance for the class of 2017 being $28,650. Many college graduates may decide to reject lower-paying public service positions in favour of higher-paying private sector employment as a result of their debt load, which can have a significant impact on their career possibilities.

With the support of federal student loan forgiveness programmes, qualified teachers, nurses, and other employees of the public sector may be able to better manage their federal student debt or perhaps have it fully erased.

Some of the major federal student loan forgiveness programs are:

Public Service Loan Forgiveness (PSLF)

Public Service Loan Forgiveness (PSLF), which was established in 2007 as a component of the College Cost Reduction and Access Act, gives eligible full-time public servants the chance to have their federal student loans forgiven after ten years of consistent, on-time payments. The programme is open to eligible government and nonprofit workers, including police officers, soldiers, and public health and education specialists.

Teacher Loan Forgiveness

The Teacher Loan Forgiveness Programme provides up to $17,500 in federal Direct and Stafford student loan forgiveness to teachers who have taught in qualifying low-income schools for at least five years. The Teacher Cancellation Low Income Directory has a list of the most recent institutions that qualify.

One of the quickest routes to federal student loan relief is through this programme. Teachers working in nonprofit public and private schools may also be eligible for the aforementioned 10-year PSLF programme. The PSLF programme can be a slower, but more financially advantageous, choice for a teacher with a higher debt load.

Also Read: Education Loans for Abroad Studies in 2023

Income-Driven Repayment (IDR) Forgiveness

Based on family size and current income, income-driven repayment can help lower monthly federal higher education loan payments to a more reasonable level (and occasionally even to zero). Any outstanding loan balance is discharged after each programme. Only federal student loans are eligible, though each program’s list of eligible loans differs.

Eligibility for Citizen Bank Student Loan

The following standards are used by Citizens Bank for refinancing student loans:

  • You must be a citizen, permanent resident, or resident alien of the United States, have a valid Social Security number, and have another creditworthy American as a co-signer.
  • You require a co-signer if you have not reached the state’s legal age of majority.
  • If you graduated from school with an associate’s degree or no degree at all, you must have made at least 12 qualifying payments.
  • You cannot be enrolled in school and must be making payments on your student loans.
  • You must have gone to a college that qualifies for federal financial aid.
  • You must earn at least $24,000 in gross annual income. The sum might be made up of the combined income of the borrower and co-signer.
  • To qualify for a refinance, your student loan debt must be at least $10,000.

You must declare your monthly income and submit a credit check when you refinance your student or parent loans with Citizens Bank. The minimum credit score and other requirements for loan approval are not disclosed by Citizens. In addition, they are more accommodating concerning qualifying standards than other lenders on the market.

Also Read:  Types of Education Loans for Indian Students

FAQs

Q1. Can refinance student loans be forgiven?

Ans. No, if you refinance, you won’t be qualified for loan forgiveness. You might be able to achieve a cheaper interest rate by refinancing a federal student loan, but there are some costs involved.

Q2. Can I refinance my student loan from India to the USA?

Ans. Certain private lenders might be prepared to refinance your student loan from India depending on your school or college, your credit score, the co-signer you choose, your current income, and the type of visa you have. Sadly, the American government doesn’t offer any initiatives to assist Indian students with foreign loans.

Q3. What happens when you refinance a student loan?

Ans. Certain private lenders might be prepared to refinance your student loan from India depending on your school or college, your credit score, the co-signer you choose, your current income, and the type of visa you have. Sadly, the American government doesn’t offer any initiatives to assist Indian students with foreign loans.

Hope this blog helped you with all the necessary information regarding Citizens Bank Student Loan for International Students: Refinance, Repayment, Forgiveness. For more such information visit us at Fly Finance and kick-start your study abroad dream with all the guidance you need.

About Shreya Nigam

Experienced author Shreya Nigam focuses on student loans, international banking, and international money transfers. She offers clear and succinct help on handling these complex topics because she has good expertise in finance. Her knowledge equips readers to make sensible financial choices in a global setting.

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