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Citizens Bank | Good Banking is Good Citizenship

Student Services

Finding a Loan

Choosing the right loan for you means selecting the one best suited to your individual situation. We can help you find the best fit.

Overview of Student Loans

Choosing the Right Student Loans

Choosing a Lender

Using Loans (Home Equity vs. Student)

What Happens if I'm Denied a Private Loan?

Student Loan Overview

Seeing the bigger picture with school loans

Going to college is a complicated process—but the same basic steps are followed by most prospective students and their parents:

Decide on a short list of potential colleges you are interested in attending.
File the FAFSA as soon as possible after January 1, even if you don't know where you will be attending school. You can always go back to your FAFSA application and make updates via the FAFSA website .
Apply for any academic grants and scholarships.
Review your financial aid package to see your total expenses, federal grants, scholarships, and student loans available. Check with the school for specific dates.
Determine the funding gap you are facing after using all grants, scholarships and federal loans available to meet the total cost of attendance.
Utilize savings or apply for private student loans to cover the remaining costs.

Principal types of student loans for college:

Federal Perkins Loans (need based)
Subsidized Direct Stafford Loans (need based)
Unsubsidized Direct Stafford Loans (all are eligible)
Direct PLUS Loans for parents and graduate students
Private student loans (from private lenders such as banks)

It's important to note that Subsidized and Unsubsidized Stafford Loans and PLUS Loans are Federal Direct Loans, which you get directly from the government and generally have fixed, lower interest rates. You should exhaust all your federal loan options before turning your attention to securing private student loans—that is, borrowing from a private loan lender such as a bank or credit union.

Choosing the Right Loan

Understanding interest rates and total loan costs

Most families will need to cover the gap between what they can afford to pay for college and the actual final cost by securing private loans. But how do you choose which loans are the best for your family?

Experts say more than $150 billion in financial aid is available each year for post-secondary students. Make sure you begin the student loan research process with the FAFSA and federal student loan options, as these will have the lowest interest rates available. Once federal options, grants and scholarships have been explored, private student loans can be used to cover the remaining education expenses.

Factors to consider for private student loans

There are several factors to take into account when considering a lender:

Competitive interest rates. This is likely at the top of the list for most people. Make sure to scrutinize and compare both the prevailing interest rates and any associated fees.
Fixed or variable? Fixed rates stay the same; variable rates may be lower, but they can change. You'll need to assess whether fixed or variable interest rates are better for your situation. Most private student loans have variable rates.
Annual percentage rate (APR). An APR includes not only the interest charged, but also any other fees that may come with the loan. When comparing loans, most borrowers look to the APR because it represents the true cost of borrowing over time.
Quality of customer service. Are the institution's online capabilities strong? Can you get your questions answered in a timely manner? Citizens Bank offers 25 years of experience in the student loan industry and direct access to student loan specialists
Loan resale. Will the lender eventually sell your loan to another institution, and if so, how will that change your service quality?

Looking for more college loan information? Browse our student loan FAQ.

Student Loan Lenders

Choosing a reliable bank

With college costs growing at about twice the rate of inflation and many family savings pools affected by economic changes, private student loans are becoming more necessary than ever. Private loans offer an opportunity to close the gap between what a family has on hand and what it costs to send their children to college. Be sure to maximize grants, scholarships and federal loans first before taking out a private loan.

How to find the right bank to lend you the money

Here are a few things to consider when evaluating lenders:

Consider a full-service institution like Citizens Bank that offers a variety of banking options, like checking accounts and student loans.
Does the lender offer competitive rates, different payment options and online account access?
Does the lender have years of experience offering student loans? Do they appear on a preferred lender list or offer the ability to reach a live person for expert advice? Citizens Bank has 25 years of experience in the student loan industry. We are committed to our customers by offering ongoing expert advice directly from our student loan specialists.

When you've decided which school you'll be attending, ask your school's financial aid office for a list of its preferred lenders. Preferred lenders have originated loans for students of that school before, and may be more familiar with your school's process, personnel or policies. Remember, however, your school must process a loan from any lender, even if they are not on their preferred lender list.

Using Home Equity for College

Paying for higher education using your home's equity

College tuition and room and board charges are rising at about twice the rate of inflation. With most families' savings pools negatively affected by the difficult economic climate, many of them are forced to be more creative about coming up with the funds to pay for their children's post-secondary education.

For many, this means obtaining private student loans from banks to cover educational costs over and above those covered by federally guaranteed student loans. But for others, the best option for closing the financial gap might be tapping into the equity in their home, and using a home equity loan for college expenses. Home equity is the difference between the fair market value of your home and what you owe on it. In other words, it's the portion of the total value in your house that you already own.

Most financial institutions offer both student loan and home equity options. Home equity loans require that you own a home and have accrued equity that can be borrowed against.

Advantages of paying for college with a home equity loan:

Proceeds from a home equity line of credit are not considered “income” and are not reported as an asset.
The loan amount is limited only by the amount of equity in the applicant's home, their debt-to-income ratio and creditworthiness.
Home equity loans may qualify you for tax breaks, since in many cases the interest you pay is tax-deductible (check with your tax advisor first).

Student Loan Approval

What if I'm denied a student loan?

The bad news is unavoidable: your application for a private student loan has been denied. Don't panic or think this means you won't be able to attend college. There are still plenty of possible avenues to pursue. First and foremost, be sure you apply with a cosigner.

If you apply on your own, without a cosigner, and are denied, it's probably because you have insufficient personal credit history, as is typical for younger applicants. You'll simply have to find a qualified cosigner and reapply.

That cosigner could be anyone of your chosing, typically a parent or other guardian, a grandparent, an older sibling or perhaps an uncle or aunt. By cosigning your loan, they're agreeing to personally step in and help repay the loan in the event you cannot. At the same time, it doesn't remove your role as the primary borrower. You and the cosigner are equally responsible for repayment.

If you apply with a cosigner and are denied a student loan, you can find another qualified cosigner and reapply. The good news is that there are benefits to serving as a cosigner and some lenders do offer the option to be released as a cosigner after a certain period of on-time payments. For example, our TruFit Student Loan™ has a cosigner release option available after 36 consecutive on-time payments.¹

How to establish good credit

Here are a few pointers on how you can establish good credit, so that in the future you'll possibly qualify on your own:

Start out small—Establishing good credit takes time. Start with one credit card.
Pay on time, every time—Never miss a monthly payment.
Don't pay down, pay off—Pay your credit card bills in full each month.

Helpful Tools & Information
Education Planning & Repayment Calculator	Use this handy tool to determine your individual cost of college.	View Calculator
Scholarship Search	An advanced search engine that combines your scholastic and personal information with your other awards, activities and affiliations to help you find the right scholarship.	Learn more
Student Loans Comparison Chart	Use this chart to help you choose which loans are best for you.	Learn more

Have student loan questions? Call our Student Services team.

1-800-708-6684

Student banking questions?

1-888-400-5670

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Citizens Bank is a brand name of RBS Citizens, N.A. and Citizens Bank of Pennsylvania. Deposit accounts held at RBS Citizens, N.A. and Citizens Bank of Pennsylvania are separately insured.