A newer version of your browser is available. Older versions may limit your ability to access some of this site's functionality. Citizens Bank recommends upgrading your browser.
The federal government announced that interest will not accrue and payments will not be due for a period of 6 months on federal student loans. We recommend that all customers with federal student loan debt carefully consider their options before refinancing with a private student loan. This interest free period is beneficial to customers and we advise you to consider these benefits during the six month period and over the life of the loan prior to refinancing. When you refinance, you waive any current and potential future benefits of your federal loans and replace those with the benefits of the Education Refinance Loan.
Depending on your rate and amount borrowed, refinancing may still be a good lifetime savings option for you. We are here to help you think through what might be your best option. Please call us at 1-800-708-6684.
Please carefully review your current and potential future benefits on your federal loans before refinancing.
By Stephen Sellner | Citizens Bank Staff
If you’re reading this, then you probably decided to help your child with the cost of college by taking out a Parent PLUS Loan.
Now that you’ve made that admirable decision, what do you need to know about your loan’s repayment? Here are the answers to some of the most frequently asked questions.
You start repaying your loan once it’s fully disbursed — or paid out — to the school for that academic year. The specific timeframe depends on the school.
Generally speaking, colleges with a two-semester academic calendar will receive two loan disbursements from lenders. The first happens that August or September for the fall semester; the second in January or February for the spring semester. In this situation, repayment would begin after that January or February disbursement.
Or, you may want to wait until your child is out of school to start making payments. In that case, you can request deferment. Deferment means no payments are required while your child is enrolled (half time or more) in school. Then you get an additional six months — after they graduate, leave school, or drop below half-time enrollment — before your payments begin.
However, in Parent PLUS Loan deferment, interest will accrue. With this in mind, you could either:
Interest-only payments during deferment keep interest from accruing while your child is in school.
Parent PLUS Loans have four repayment plans:
Unfortunately, no. You, the parent, are legally responsible for repayment of the loan.
Yes, you can!
Depending on the private lender selected, refinancing your Parent PLUS Loan could result in one or both of these benefits:
In a rising-rate environment, it’s important to refinance as soon as possible to lock in the lowest interest rate that you can. Then, if the environment changes and rates start dropping, you could always refinance your refinance loan to get a better interest rate.
Keep in mind that refinancing — which is only available through private lenders — means forfeiting federal loan benefits, such as income-based repayment.
Are you interested in refinancing your Parent PLUS Loan? An Education Refinance Loan for Parents through Citizens Bank could lower your interest rate and/or simplify repayment by combining multiple Parent PLUS Loans into a single loan.
The zip code you entered is served by Citizens One, the brand name for Citizens Bank's lending business outside of our 11‑state branch footprint. Under the Citizens One brand we offer Auto Loans, Credit Cards, Mortgages, Personal Loans and Student Loans. To learn more, please visit: