Frequently Asked Questions: Private Student Loans

• I received my financial aid award letter, but still owe money to the school. Are there other loans available?

  We do offer a private loan, the Citizens Student Loan^™. In general, private loans allow you to borrow what you need to cover a gap after federal aid. These loans are credit based, so most students will require a creditworthy co‑signer, such as a parent or legal guardian, to be approved.

• Is there a loan my parents can take out for my education?

  We offer the Citizens Student Loan^™ for Parents, which enables parents to borrow a private student loan to cover the cost of college without adding the burden of debt to the student. With no origination fee, this could be a better alternative to the Federal Direct PLUS Loan for qualified applicants.

• Why choose Citizens for your private student loan?

  We have an established track record of deep credibility and broad expertise with more than 40 years in the student loan business. Over that time, we’ve developed a network of close relationships with college financial aid offices and other student financial aid professionals, which greatly benefits our borrowers.

• Are there any fees to apply for Citizens student loans?

  The Citizens Student Loan^™ and Citizens Student Loan^™ for Parents have no origination, application, or disbursement fees.

• Is there a loyalty discount for a student loan?
  The student loan borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their cosigner (if applicable) has a qualifying account in existence with us at the time the borrower and their cosigner (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account (our student checking account might be worth considering in this case), savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank, N.A.
• How much can I borrow with a Citizens Student Loan™?

  You may borrow up to the maximum qualified loan amount or the total cost of education, whichever is lower. Our student loan does have lifetime aggregate limits^† (including both federal and private loan debt) of:

  • Minimum: $1000
  • Undergraduate: $225,000
  • Graduate Degrees: $225,000
  • MBA and Law: $300,000
  • Healthcare: $225,000 or $400,000 depending on your degree
• Do you have a student loan calculator?
  We do not have a student loan calculator but you can get your rate in two minutes or less with no impact to your credit score here.
• Can a private student loan help pay for my books and my personal expenses while I'm at school?

  Our Citizens Student Loan^™ can be used to help pay for your school certified indirect costs while you are enrolled in school. The maximum you can borrow each year is determined by your individual school through loan certification.

• Do you offer an income-based payment plan for student loan repayment?

  Citizens does not offer income-based repayment plans for their student loans. The Citizens Student Loan™ repayment options are:

  • Immediate: Make payments while in school. Principal and interest payments will begin within 30 days of the first disbursement of loan proceeds to your school. Interest will accrue only on the funds disbursed to the school.
  • Interest-only: Make interest-only payments while in school, helping lower total loan debt. Interest payments will begin within 30 days of the first disbursement of loan proceeds to your school. Interest will accrue only on the funds disbursed to the school. Full principal and interest payments will begin 6 months after you cease at least half-time enrollment.
  • Deferred: Postpone making payments while in school by deferring payments on our Citizens Student Loan™ until one of the following: six months after graduation, leaving school or when you drop below half-time status. Interest will accrue throughout the life of the loan.
• How do I apply for Citizens student loans?

  All you need to do is fill out the quick and easy 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
  • Recent pay stub (no more than 30 days old) or other proof of income and monthly housing payment.
  • Employer name, phone number and length of employment (if applicable)
  • Name of school you plan to attend
  • Cost of attendance and any financial aid received (see award letter from your school)
  • Student's anticipated graduation date, loan period and loan amount needed.
  • Co‑signer name and valid email address (if applicable)

  Remember, students are encouraged to apply with a qualified co‑signer to increase their chances of approval and receiving the lowest rate possible. If you're a parent, take a look at our Citizens Student Loan™ for Parents—with an average savings of $737^†, it's a better alternative to the Federal Direct PLUS Loan.

• What kind of credit is required for a Citizens Student Loan™?

  We will need to see a reasonably strong credit history, which is derived from your credit score. If you do not have a sufficient credit history, you should apply with a creditworthy co‑signer.

• Will this loan application impact my credit score?

  Citizens student loans are credit-based loans which will be seen as an inquiry on the applicant's credit report.

• Are international students eligible to borrow?

  Our Citizens Student Loan^™ allows international students to apply as long as they have a creditworthy co‑signer who is a US citizen or a permanent resident. International students must apply via our online application.

• Can I use student loans to study in a foreign country?

  Depending on the school you are planning to attend, you may be eligible to apply for a Federal Student Loan. Many foreign schools participate in both the Federal Direct Loan program and the Federal Direct PLUS Loan programs. At this time our Citizens Student Loan^™ is only available to students who need funds for a US school study abroad program.

• What if I apply and I'm not approved?

  If you apply for a private student loan on your own, without a co‑signer, and are denied, it may be because you have an insufficient personal credit history, which is typical for a student. If you are denied, you can add a qualified co‑signer to increase your chances of approval and receiving the lowest eligible rate possible.

• Are there any penalties for paying off a Citizens student loan early?

  No, there is no prepayment penalty or any other penalty for paying more than the minimum monthly payment or for paying off the entire loan early.

• What is the difference between a variable rate and a fixed rate?

  Variable Rates: May help you get a low rate and monthly payment with an interest rate that changes monthly, and monthly payments that will vary over time.

  Fixed Rates: Provide an interest rate that remains the same over the life of your loan and your monthly payments do not change.

  See repayment examples to help you choose which rate option works best for you.

Have more questions? Get more answers in our full FAQs section.