Citizens Bank review: Private student loans and refinancing

Citizens Bank has more than 40 years of experience in lending student loans, offering both private student loans and refinance loans. The lender reports that its refinance loans have saved customers an average of $4,248 annually. 

Citizens Bank makes it easy to get started, and offers some unique benefits that other lenders don't, including multi-year approval. Learn more in this Citizens Bank review to decide if this student loan lender is right for you. 

Citizens Bank private student loans

Best for: Simplified borrowing process 

Citizens Bank makes borrowing simple. This starts with its quick two-minute prequalification process, which doesn’t require a hard credit check and won’t impact your credit score. However, the biggest perk of Citizens Bank is its multi-year approval. 

With the lender's multi-year approval policy, which few competitors offer, you won’t need to submit a full application for each year of school. You’ll only need to apply for your first year. After that, you just log in to your account before each academic year to request the funds you need. There is no additional application to submit and no hard credit check required for any subsequent years.

Multi-year approval saves you time and protects your credit score, as hard inquiries remain on your credit reports for two years, and too many in a short period can lower your score. You do need to meet qualification requirements for multi-year approval, but once you've cleared that hurdle, you won't have to worry about finding a loan for subsequent school years, and borrowing becomes virtually effortless.

Eligibility requirements 

You must meet certain criteria for your application for a Citizens Bank student loan to be approved. Eligibility requirements include the following:

• U.S. citizenship or permanent residency (eligible noncitizens can qualify with a cosigner who is a citizen or permanent resident) 
• Credit qualification
• Enrollment at least half time in a degree-granting program at an eligible academic institution
• Must be the age of majority in your state or have a cosigner who has reached the age of majority

Borrowers unable to qualify on their own will need a cosigner. Citizens Bank indicates 99% of their undergraduate applications are cosigned. Cosigner release is available after 36 months, which is longer than some competitors require.

Notable benefits 

• Multi-year approval streamlines the borrowing process in subsequent years, allowing you to log in to your account and request funds each year with no new application or hard credit check.
• Borrowers can qualify for a loyalty discount of 0.25 percentage points if either the borrower or their cosigner has a qualifying Citizens Bank account when the application to borrow is submitted.
• Borrowers can qualify for an autopay discount of 0.25 percentage points if they set up autopay from their bank account.
• You can get a personalized rate quote in minutes with no hard credit check. 
• Your rate quote is good for 30 days, offering plenty of time to comparison shop for loan offers. 

What to consider before applying

You must meet underwriting criteria to be eligible for multi-year approval. When you request additional funds, you will need to undergo a soft credit check. Citizens Bank indicates that borrowers qualifying for multi-year approval have a 99% approval rate when seeking additional funds for later school years. 

In addition, keep in mind that it will take at least three years before you can release a cosigner from your loan. 

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Steps to apply 

You can apply for a Citizens Bank student loan within minutes. Here are the steps:

• Click “Apply Now” on the Citizens website.
• Provide preliminary information to obtain a rate quote with no hard credit check. This includes your name and contact details.
• Compare loan options, choosing between fixed- and variable-rate choices with different loan terms.
• Upload supporting documents, such as a government-issue ID.
• Sign your loan paperwork electronically and accept your loan agreement.

The loan approval process is typically very streamlined. When you submit your application, you will also find out if you are eligible for multi-year approval. 

Citizens Bank student loan refinance 

Best for: Existing Citizens customers

Existing Citizens Bank customers benefit from a loyalty discount when they get a refinance loan. This makes the lender an ideal choice for current customers, because the discount reduces your interest rate by 0.25 percentage points. You can also get an additional discount of 0.25 percentage points by signing up for automatic payments. 

You can qualify for the discount if you or your cosigner have a qualifying account, including a checking, savings, money market, certificate of deposit, auto loan, home equity loan, home equity line of credit, mortgage, credit card account, or other student loans owned by Citizens Bank.

These discounts can result in substantial savings, especially if you have a large student loan balance to refinance. 

Eligibility requirements 

Here are the requirements to be eligible to refinance student loans with Citizens Bank:

• Have a minimum of $10,000 in student loans you need to refinance.
• Be a U.S. Citizen, permanent resident, or resident alien.
• Have a valid Social Security number.
• Hold at least a bachelor's degree.
• For parent refinance loans, the primary applicant must be the primary borrower or cosigner on the loan that is being refinanced.
• You must meet credit and other financial requirements. 

If you are unable to meet the requirements based on your personal credit score, you are allowed to apply for a refinance loan with a cosigner. Cosigners can be released from responsibility for the loan after you've made 36 consecutive on-time payments. 

Notable benefits 

• Loyalty discount reduces your interest rate by 0.25 percentage points
• Automatic payment discount reduces your rate by 0.25 percentage points
• Flexible repayment options, with a choice of 5-, 7-, 10-, 15-, and 20-year terms 
• No application, origination, or disbursement fees 
• No prepayment penalty

What to consider before applying

The maximum borrowing limits are $300,000 if you have a bachelor's degree, $500,000 for grad degrees, and $750,000 for professional degrees. While these amounts are higher than some competitors, the minimum loan limit of $10,000 is also higher. This means Citizens Bank is an ideal choice for borrowers with substantial student loans.

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Steps to apply 

Here are the necessary steps to get a Citizens Bank refinance loan:

• Select "Apply Now" on the Citizens Bank website to check your eligibility and get a rate quote without a hard credit inquiry. 
• Complete an application, which includes your personal information and details about any educational loans you have in your name, either as a primary borrower or a cosigner.
• Choose a loan option that makes sense for your situation.
• Keep paying your current loan until you get confirmation that your full balance has been paid. You’ll then start making payments on your Citizens loan. 

Find your student loan

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FAQ 

Is Citizens Bank a trusted lending provider? 

Citizens Bank is a trusted provider. It has been providing student loans for more than 40 years, and the lender has a B rating with the Better Business Bureau. 

Is it hard to get approved for a student loan with Citizens Bank? 

Citizens Bank allows you to apply and get preliminary approval and a customized rate quote within minutes. The lender does require you to meet its credit requirements, but is willing to accept a cosigner, which can make it easier to get approved to borrow.

What credit score do you need for a Citizens Bank student loan? 

Citizens Bank indicates borrowers must meet credit score requirements, but the lender does not disclose a specific minimum credit score requirement on its website. Borrowers who do not have strong credit on their own can apply with a cosigner. 

How long does it take to get approved for a Citizens Bank student loan?

In many cases, Citizens Bank provides an immediate decision on student loan applications. When the bank is not able to provide immediate approval, it can take as long as three to five business days to get a decision. The lender also indicates that the entirety of the application process takes an average of two to four weeks.