Benefits of Refinancing and Consolidating Student Loans

Apply for a Citizens Bank Education Refinance Loan® to simplify student loan repayment

Interested in reducing your student loan payments? An Education Refinance Loan from Citizens Bank could help you do just that. Whether you want to refinance student loans individually or consolidate your loans together with all the benefits of refinancing, our Education Refinance Loan can help make your monthly payments more manageable, and may even be able to reduce your overall debt. Plus, you have the option to consolidate federal and private student loans together, which could allow you to make just one easy payment a month. Learn more about the benefits of refinancing and consolidating student loans with Citizens Bank below.

Reducing student loan payments by refinancing

Refinancing allows you to adjust the terms of your individual student loans and may provide you access to a lower interest rate, or extend your repayment period, thereby reducing your student loan payments. This may make your monthly payments more manageable, and/or allow you to allocate any freed-up funds directly to the principal so you could pay down the loan faster – which could improve your credit score. For example, let’s say you had one loan you were closer to paying off. One of the benefits of refinancing is that you could adjust this loan individually while making regular payments on your other loans or consolidating them separately. If you’re focused on lowering your debt-to-income ratio – especially in order to make a large purchase like a home of a car – the credit benefits of refinancing may help you meet your goals.

There are important factors to consider when refinancing your federal student loans specifically, as those loans offer a unique set of repayment benefits, which would be negated by refinancing to a private loan. This is where the ability to refinance loans individually could benefit you as you could refinance outstanding private student loans while keeping your federal loans separate to take advantage of income based repayment or student loan forgiveness programs.

If you’re interested in learning more about the benefits of refinancing student loans and how it might fit your situation, review Citizens Bank's eligibility and loan limits and speak to a Student Lending Specialist.

Simplifying student loan obligations with consolidation benefits

Federal student loan consolidation simply combines your outstanding loans into one loan – usually using the lowest rate of those consolidated. While this simplifies repayment, it doesn’t necessarily help when you’re interested in reducing student loan payments. That’s where the Education Refinance Loan from Citizens Bank comes in. When you choose student loan consolidation with us, you get some of the benefits of refinancing your loans, plus the benefit of combining your loans into one, easy-to-manage monthly payment. You could even combine federal and private student loans in your new loan (though as with refinancing, you should be aware that this negates any of the terms or benefits federal loans may offer). If you’re interested in seeing how the benefits of consolidating student loans could apply to you, and what your new loan would look like, use our Loan Estimator tool.

Citizens Bank customers could lower their student loan interest rate with special discounts

Whether you choose to use the Education Refinance Loan for student loan refinancing or consolidation, you’ll have access to the benefits of our loan discounts and other unique terms and conditions. Review some of our additional benefits below:

  • Loyalty discount: Do you or your Co-signer have an existing account with Citizens Bank? If so, you could receive a 0.25 percentage point interest rate reduction1 on your Education Refinance Loan.

  • Automatic payment discount: Setting up automatic deductions could help you keep up with your student loan repayment plan. If you authorize automatic payments when you sign up for an Education Refinance Loan, you could receive a 0.25 percentage point interest rate reduction2. That means that Citizens Bank customers could receive a discount of 0.50 percent on their interest rate!

  • Co-signer release: You’re not required to apply with a co-signer, but it could help you secure lower rates. If you do, after making 36 consecutive, on-time payments on an Education Refinance Loan, your co-signer may be released from loan responsibility.3 For more about the rights and responsibilities of co-signers, speak with a Student Lending Specialist.

Apply for an Education Refinance Loan to take advantage of student loan refinancing or consolidation benefits

Applying for an Education Refinance Loan could help you reduce student loan payments and gain more control over your debt. You could potentially take advantage of lower student loan interest rates, longer loan terms and lower monthly payments, freeing up funds for now and for the your future. Plus, the online application process is simple and straightforward – no matter whether you opt to refinance student loans individually or consolidate them together. To learn more about the refinance and consolidation benefits of Citizens Bank Education Refinance Loan, speak to a Student Lending Specialist today.

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