Citizens Bank Education Refinance Loan Review: A Comprehensive Guide

Student loan refinancing can be a powerful tool to manage debt, potentially saving borrowers money and simplifying repayment. Citizens Bank remains a significant player in the student loan refinance market, offering options for a wide range of borrowers. This review provides a comprehensive look at Citizens Bank's education refinance loan program, covering its pros, cons, terms, and conditions to help you make an informed decision.

Citizens Bank Overview

Citizens Bank is one of the few traditional banks still active in the student loan refinance marketplace. Despite the rise of fin-tech lenders, Citizens has maintained a competitive edge, offering a range of loan options and interest rates. They are known for providing refinancing opportunities to borrowers with and without degrees.

Key Features

Cosigner Release: Available after 36 consecutive on-time monthly payments.
Interest Rate Discounts: A 0.25% interest rate reduction for enrolling in autopay.
Additional Discounts: Interest rate reduction for having a qualifying checking, savings, or investment account with Citizens Bank.
Forbearance Option: You may qualify to put your loans into forbearance for a maximum of 12 months in a row in 2-month periods.
High Loan Limits: Borrow up to $300,000 for Bachelor’s degrees and below and $500,000 for Graduate degrees.

The Bottom Line

Citizens Bank continues to be a solid lender for student loan refinancing. A significant advantage is that you can refinance whether you have a post-secondary degree or not, making it a viable option for current students and those who dropped out before graduating. However, it's essential to weigh the pros and cons carefully.

Pros and Cons

Pros

Accessibility: Refinancing is available to those without Bachelor’s degrees, provided they have made 12 qualifying loan payments since leaving school.
Competitive Interest Rates: Citizens Bank offers a wide range of possible interest rates. On the lower end, these rates are excellent.
Long Repayment Terms: Offers repayment terms of 5, 7, 10, 15, and 20 years.
No Fees: No charges for loan applications, origination fees, or prepayment penalties.
Cosigner Release: Cosigners are allowed and can be released after 36 on-time payments.
Multiyear Approval: After freshman year, you can request loans for subsequent school years without you or your co-signer undergoing a hard credit check, which affects your credit. International students cannot receive multiyear approval.

Cons

Late Fees: Late fees are charged. Specifically, 5% of the payment amount for payments not made within 15 days of the due date.
Long Cosigner Release Period: Requires 36 consecutive on-time monthly payments for cosigner release.
High Minimum Borrowing Requirement: The minimum refinancing loan amount is $10,000, which is somewhat higher than the average.
Emphasis on Co-signers: While co-signing may be a necessity for some, it is something that most borrowers would be wise to avoid.
Poor Customer Reviews: Citizens Bank is BBB-accredited but has poor customer reviews.

Citizens Bank Refinance: Terms and Conditions

Loan Terms	Details
Loan Terms	5, 7, 10, 15, and 20 Years
Variable Rate Loans	6.15% - 13.08%
Fixed Rate Loans	5.88% - 12.10%
Minimum Refinance Amount	$10,000
New Borrower Bonus	-

Interest Rates and Loan Length

Citizens Bank offers a wide range of possible interest rates. On the lower end, these rates are excellent, but the higher rate loans are less appealing. Whether or not Citizens ends up being the best deal will depend upon your credit score and income.

Citizens does get high marks for the length of time available to repay the loans. With up to 20 years to repay your loans, Citizens has one of the longest repayment plans in the market. By stretching out repayment so far, the minimum is much more manageable for months when the budget is tight.

Citizens Bank Interest Rates vs. Other Lenders

When we break down the interest rates according to loan type (fixed and variable) and loan length, Citizens ranks among the best lenders in a few different loan categories. Additionally, Citizens is routinely just outside the top three in many other loan categories.

While Citizens advertised rates across many loan types are very competitive, the only way for an individual borrower to verify they are getting the best possible rate is to apply with several different student loan refinance companies. This is because each lender uses a unique formula when evaluating credit applications.

Red Flags for Borrowers to Review

One thing we don’t like is the emphasis on co-signers. The mandatory 36 month waiting period for a co-signer release is also one of the longest we have seen. Many co-signers will want to be able to be removed from the loan within a year or two.

Citizens seems to be targeting people with federal loans for their refinancing. Private consolidation of federal loans can be a huge mistake. Any prospective borrower must understand that if you consolidate your federal loans with a private lender, you will never qualify for student loan forgiveness or an income-driven repayment plan. However, Citizens does a better job than most companies at pointing out some of the risks associated with private loan consolidation.

Refinancing Federal Loans: Things to Consider

Refinancing federal loans with a private lender like Citizens Bank means you will forfeit certain federal loan benefits. These benefits include:

Income-Driven Repayment Plans: Federal loans offer income-driven repayment plans, which adjust your monthly payments based on your income and family size.
Loan Forgiveness Programs: Federal loans may qualify for forgiveness programs, such as Public Service Loan Forgiveness (PSLF) for those working in eligible public service jobs.
Deferment and Forbearance Options: Federal loans typically offer more flexible deferment and forbearance options during times of economic hardship.

Before refinancing federal loans, carefully consider whether these benefits are important to you.

Citizens Bank Refinancing Review: The Bottom Line

The Citizens Bank refinance program claims a spot in the top half of our Student Loan Refinance Rankings, based mainly on the low interest rates advertised.

Due to the large range of possible interest rates, borrowers would be wise to apply to several different companies to find the lowest rate actually available. By working with multiple companies, potential customers also get the opportunity to directly compare the companies and how they interact with their customers before any contracts are signed. Please note, if you decide to go this route, be sure to apply to all of them in a short period of time to prevent any damage to your credit report.

Who is Citizens Bank Best For?

Borrowers with a High Debt Balance: Citizens Bank offers high loan limits, making it suitable for those with substantial student loan debt.
Existing Citizens Bank Customers: An additional 0.25% reduction is available for linking a Citizens Bank account to autopay.
Low to Mid-Level Earners: Citizen Bank’s refinance program appears to be a good fit for low to mid-level earners.
Borrowers Who Value Traditional Banks: Citizens earns 4 out of 5 stars from Student Loan Planner®, making it a great choice for borrowers who value working with a traditional bank.
International students can qualify with a co-signer.

Alternatives to Citizens Bank

If Citizens Bank doesn't seem like the right fit, explore other student loan refinance lenders. Compare interest rates, repayment options, and eligibility requirements to find the best loan for your individual circumstances.

How to Apply

Check Your Rate: Checking your rate with Citizens Bank will not affect your credit score.
Gather Information: You’ll be asked to submit your standard contact and personal information when you seek your Citizens refinance interest rate. You should also be prepared to provide income verification. If you work a standard W2 job, you can submit your two most recent pay stubs within 60 days of your application submission.
Submit Application: Complete the full application online.

Citizens Bank Private Student Loans

Citizens Bank offers private student loans and refinancing options for students, parents, and medical residents. However, while Citizens is strong on rates and flexibility, it doesn’t offer repayment assistance or support students at community colleges or part-time programs.

Loan Details

Eligibility: Citizens, permanent residents, or resident aliens with a valid Social Security number.
Minimum Loan Amount: $1,000
Maximum Loan Amount: Undergraduate: $225,000 Other Graduate: $225,000 Expanded Medical: $250,000 Law: $300,000 MBA: $300,000 Medical: $400,000 Citizens Parent Loan: Dependent upon FICO; Up to $350,000.
Loan Terms: 5, 10 and 15 years.
Repayment Options: Immediate, Interest-only, or Deferred during school.
Multiyear Approvals: After freshman year, borrowers can request loans for subsequent school years without you or your co-signer undergoing a hard credit check, which affects your credit. International students cannot receive multiyear approval.

Repayment Options

Immediate: Begin making full monthly payments as soon as the loan is disbursed. This option will save you the most in interest.
Interest-only: Make monthly interest payments while you're in school and during your grace period.
Deferred: You won’t be required to make any payments until your grace period ends, but you can choose to make payments if you’d like.
Internship and residency deferment: Postpone payments during an eligible internship or residency.
Grace period extension: Yes, an additional 6 months.
Forbearance: Postpone payments for up to 12 months if you're experiencing economic hardship.
Co-signer release: Yes, after 36 months.
Death or disability discharge: Yes.
Loan discharge if co-signer dies or becomes disabled: No.

Customer Service

Loan servicer: Citizens.
In-house customer service team: Yes.
Process for escalating concerns: Yes.
Borrowers get assigned a dedicated banker, advisor or representative: Yes.
Average time for approval: If not immediately, it can be within 3-5 business.

Before Applying for a Citizens Bank Student Loan

Before taking out a Citizens Bank student loan or any other private student loan, exhaust your federal student loan options first. Submit the Free Application for Federal Student Aid, known as the FAFSA, to apply.

Compare your private student loan options to make sure you’re getting the best rate you qualify for. In addition to interest rates, look at lenders’ repayment alternatives and the flexibility they offer to borrowers who struggle to make payments.

If You Aren’t Eligible for a Citizens Bank Student Loan

If Citizens Bank denies your student loan application, the lender will let you know why. Depending on the reason, you may want to consider other lenders or, if you haven’t already, try applying with a co-signer.

Complaints and Lawsuits

In 2024, consumers filed 1,869 complaints about Citizens Bank, up 68.0% compared to an average year. The allegations made in these complaints are unverified, are not necessarily representative of all consumers’ experiences with Citizens Bank, and may contain outdated information (about rates, bonus offers, etc.).

Citizens is currently subject to at least three lawsuits: two civil actions and one class action.

Equal Employment Opportunity Commission v. Citizens Bank, N.A., Case No. The United States Equal Employment Opportunity Commission (EEOC) filed a civil action against Citizens Bank.
Bureau of Consumer Financial Protection v. Citizens Bank, N.A., Case No. The United States Bureau of Consumer Financial Protection or the Consumer Financial Protection Bureau (CFPB) filed a civil action against Citizens Bank on January 30, 2020.
Davis v. William Davis brought a class action complaint against Citizens on January 11, 2021.

Frequently Asked Questions

Can I refinance a loan from Citizens Bank? You can refinance any kind of student loan. There is no limit to the number of times a borrower may refinance with Citizens Bank.
Does Citizens Bank offer a grace period? Citizens bank does not appear to offer a grace period with their refinance loans. Citizens does, however, advertise a 6-month grace period with their student loans.
Does Citizens Bank charge late fees? When a payment is 15 days late, Citizens Bank charges 5% of the overdue amount.
Does Citizens Bank have income-based repayment plans? Citizens Bank, like most lenders, does not offer income-based repayment.
Can I refinance loans that have already been refinanced? There is no limit to the number of times you can refinance loans with Citizens Bank.
Can I refinance just some of my loans with Citizens Bank? You can refinance some, all, or just one of your qualifying student loans with Citizens Bank.
Aside from the member auto-pay rate reduction, can I get any other special rates or discounts with Citizens Bank? Citizens Bank makes different arrangements among its partner organizations.
Is Citizens Bank part of any major refinance lender marketplaces? Yes, Citizens partners with Credible as part of its multilender lender marketplace.

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