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Citizens Bank | Good Banking is Good Citizenship

Students

Learn About Private Loans

Private loans help fill the financial gap after you’ve exhausted all of your other financial resources.

Overview

Credit

FAQs

Overview

Unexpected expenses, like books, computers, extra tuition, and travel, can come up during any semester. Private student loans, like our TruFit Student Loan® can give you the versatility to pay for all your education-related expenses and the flexibility to apply when you need the funding most.

TruFit is a school-certified private loan option for undergraduate, graduate and professional students attending eligible institutions. Some of the benefits include:

Zero fees
Easy, online application process
Ability to be used with Stafford Loans
Funds sent directly to the school
Three repayment options
An interest rate reduction when you sign up for automatic payment deduction from any eligible Citizens Bank account
Even lower interest rates possible when you apply with a qualified cosigner

Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private loan. To view the required application solicitation disclosure information, please click here.

Learn more

Credit

All private loan rates are based on credit, similar to your mortgage or car loan. Thus to secure a loan with a great interest rate, all banks require a borrower to have a steady income and a reasonably good credit history.

How to Check Your Credit

When you think you need to take out a private loan, the first thing to do is check your credit report and credit score. Your credit report is a record of your financial history, which shows all of your loans, amounts borrowed on credit cards and how well you repay your debt.

All United States residents can obtain a free credit report once a year through one of the following ways:

Online: Visit www.annualcreditreport.com
Phone: Call 1 (877) FACT-ACT
Mail: Complete an Annual Credit Report Request Form and mail to:

How to Establish Credit

The first step in obtaining a good credit score is to start to establish credit. There are a number of ways you can do this, including:

Don't go it alone. For most of us, the first line of credit we receive is usually a credit card, student loan or car loan. In most cases, it's best—and often necessary—to seek someone (usually a family member) with established credit to act as a co-borrower or co-applicant.
Start out small. Establishing good credit takes time. Don't run into trouble by opening up too many accounts. Choose a credit card that carries a modest spending limit, offers a fixed interest rate and charges no annual fees.
Know the traps. Opening department store credit cards just to get a discount on your purchase is not the best idea. The discount at the store often pales in comparison to the 20-25% interest rate you'll be charged each month on the balance if you do not pay it in full immediately.
Pay on time, every time. Nearly one-third of your credit score is based on your repayment habits. Missing a monthly payment—especially when you've only had credit established for a short period of time—can cause long-term damage to your credit standing and make it difficult to secure a car or student loan. If you plan to attend college, be sure to understand the connection between student loans and credit scores.
Don't pay down, pay off. Pay off your credit card bills in full each month. If you only pay the minimum you allow interest charges to build up thus increasing your overall balance. For example, if you bought a new $250 camera with your credit card that has a 20% interest rate and only paid the minimum monthly payment (in this case 4% or $10) it would take you almost 3 years to pay off your balance and cost you $76.12 in interest charges!

A Word About Cosigners

Some graduate students may not have the annual income or credit history to independently secure a loan or affordable college loan rates. This generally means they’ll need a cosigner.

A cosigner is often a parent, legal guardian or family member who has good credit history and meets certain criteria to cosign for a private student loan.

Although a cosigner signs the loan, the student is the primary borrower. However, by signing the loan, the cosigner agrees to be fully responsible for repaying the loan if the student does not fulfill his or her obligations.

As a result, the loan obligation becomes part of the cosigner’s credit history as well as including any late payments the borrower makes.

FAQs About Private Loans for Graduate Students

How much can I borrow with a TruFit Student Loan®?
There are no annual limits. You may borrow up to the cost of your education, less any financial aid. The TruFit Student Loan does have lifetime aggregate limits (including both federal and private loan debt) of:

Undergraduate: $120,000
Graduate: $150,000
Business and Law: $175,000
Medical: $225,000

Can a TruFit Student Loan® help pay for my books and personal expenses while I’m at school?
Yes. Our TruFit Student Loan® can be used to help pay for your indirect costs while you are enrolled in school. You can borrow up to the cost of attendance minus other financial aid you have received, as determined by your indiviual school.

Do I have to fill out a Free Application for Federal Student Aid (FAFSA) to apply for a private student loan? No, you do not have to complete a FAFSA to apply for a private student loan. The FAFSA is used to determine federal student aid only.

I have bad credit, what should I do?
Obtain copies of your credit report from all three major credit bureaus and pinpoint exactly what is hurting your score. Then, read over our student loan credit section for helpful tips and advice on how to establish, improve and maintain good credit.

How do I apply for a TruFit Student Loan?
To apply for the TruFit Student Loan all you need to do is fill out the quick and simple online application. Before you apply make sure you have the following items available so you can easily complete your application:

Name, address, phone number, email address
Date of birth
Social Security Number
Driver’s license number
Gross monthly household income
Employer name, phone number and length of employment (if applicable)
Monthly rent or mortgage payment (if applicable)
Name of school you plan to attend
School’s Department of Education code
Cost of attendance and any financial aid received (see award letter from your school)
Anticipated graduation date (MM/YYYY)
Private college loan amount requested
Loan period (MM/YYYY to MM/YYYY)
Cosigner name and valid email address (if applicable)

Remember, students are encouraged to apply with a qualified co-signer to increase their chances of receiving the lowest rate possible.

Are there any fees for a TruFit Student Loan?
The TruFit Student Loan has zero fees for all borrowers.

What kind of credit is required for a TruFit Student Loan?
The lender will need to see a reasonably strong credit history, which is derived from your credit score. If a student does not have sufficient credit history they should apply with a creditworthy cosigner.

What if I am not approved for a TruFit Student Loan?
If you apply for a private student loan on your own, without a cosigner, and are denied, it's probably because you have insufficient personal credit history, as is typical for a student. You'll simply have to find a qualified cosigner, such as a parent or other guardian, and re-apply.

When can I begin repaying a TruFit Student Loan?
Your repayment options vary depending upon the option you choose when you completed your promissory note:

Immediate. Students can make payments while in school.
Interest-only. Students can make interest-only payments while in school, helping lower total loan debt.
Deferred. Students can defer payment on our alternative student loan until 6 months after graduation, leaving school or when they drop below half-time status.

Are there any penalties for paying off a TruFit Student Loan early?
There's no prepayment penalty.

Any other questions about TruFit Student Loans?
Please talk to one of our Student Loan Specialists at 1-800-708-6684.

Helpful Tools & Information
Establishing Good Credit	Your credit score is more important than you think. Find out why.	Learn more
Maintaining Good Credit	Good credit is a big deal. Bad credit is a big problem. Follow these tips to keep it pristine.	Learn more
Raising Your Credit Score	A good credit score is essential to a great interest rate. Let us help you boost it.	Learn more

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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.