Student Loan Approval

What if I'm denied for a student loan?

The bad news is unavoidable: you've been denied on your application for a private student loan. Please 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 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 someone of your age. You'll simply have to find a qualified cosigner and re-apply. That cosigner could be a parent or other guardian, a grandparent, an older sibling or perhaps a favorite 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.

On the other hand, if you apply with a cosigner, and are denied a student loan, you can find another qualified cosigner and re-apply. 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 Citizens Bank Student Loan® has a cosigner release option available after 36 consecutive on-time payments¹.

How to help prevent student loan denial by establishing 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.

Learn more about flexible student financing options from Citizens Bank

Review our other helpful student financial aid resources to make sure you're prepared for the start of college. If you want to learn more about our Citizens Bank Student Loan® or have questions about financing your college education, call a student loan specialist at 1-888-411-0266, and we'll help walk you through the process.

Additional student loan and college planning resources

Your Student Loan is Pending…What Does This Mean?
What Can I Expect After My Financing is in Place?
What Can a Cosigner Expect?
Financial Aid Disbursement Process