Citizens Student Loans provide private education financing options for undergraduate, graduate, and parent borrowers, supplementing federal student loans and other aid; this page reviews key features, eligibility, costs, application processes, and borrower protections for Citizens student lending products as of late 2025.
Who This Loan Is For
Intended for college-bound undergraduate students, graduate students, professional program enrollees, and parents seeking to borrow for a student’s education.
Typical borrowers are U.S. citizens or permanent residents enrolled at least half-time in a Title IV-eligible accredited institution; some non-citizen students with eligible cosigners may also apply.
Creditworthiness is required; most undergraduates need a cosigner (often a parent or relative) to qualify or optimize rates.
Key Facts (At-a-Glance)
Item
Details
Program Type
Private student loans offered directly by Citizens Bank; not federal student loans.
Interest
Fixed and variable APRs available; actual rates depend on credit and program. “Sample/illustrative” rates—verify on Citizens Bank’s official rates page each year.
Accrual
Unsubsidized: interest accrues from disbursement; unpaid interest capitalizes at repayment or after deferment/forbearance.
Repayment Plans
Options typically include deferred payment until after school/grace, interest-only during school, or immediate repayment. No income-driven repayment.
Grace Period
Sample/illustrative: Up to 6 months after graduation/leave before full repayment required; confirm on latest product terms.
Deferment/Forbearance
Academic, in-school, military service/active duty deferment may be available. Temporary forbearance for hardship—policies subject to change and lender approval.
Forgiveness/Discharge
Standard private loan rules: limited to death/disability discharge in eligible cases. Not eligible for federal forgiveness programs.
Annual & Aggregate Limits
Maximums based on tuition/mandatory fees minus other financial aid; aggregate (lifetime) limits apply—consult latest Citizens lending policies for numbers.
Fees
No origination or prepayment penalties as of most recent policies; always verify any late/payment fees on the official terms.
Cosigner Rules (Private)
Cosigners typically required for undergraduates; Citizens may offer cosigner release after meeting on-time payment and credit criteria (“sample/illustrative”: commonly after 36 consecutive payments but check current rules).
Pros
Broad product range for undergraduate, graduate, and parent borrowers—including “multiyear approval” for some applicants, reducing application burden after initial approval.
No origination or prepayment penalty fees per latest confirmed details; borrowers can prepay without penalty.
Cosigner release option may be available after a qualifying payment period and credit review.
Multiple in-school repayment options (deferred, interest-only, immediate) for repayment flexibility.
Cons
No federal borrower protections (such as federal income-driven repayment plans or Public Service Loan Forgiveness eligibility); protections are set by private lending terms only.
Credit-based underwriting may result in higher rates or denials for applicants with weaker profiles or without cosigners.
Interest accrues while enrolled and may capitalize, increasing total repayment cost.
Forbearance/deferment and discharge protections are generally more limited versus federal student loans; always check the latest Citizens policies.
Costs, Interest & Repayment Mechanics
Interest accrues from the time funds are disbursed. Borrowers choose from fixed or variable APRs (“sample/illustrative”; actual rates change regularly and depend on borrower/cosigner credit).
Representative APR calculation: fixed APR provides predictable monthly payments, while variable APR may start lower but can rise, impacting total cost.
Monthly payments determined by principal, interest rate, selected repayment plan, and term (typically 5, 10, or 15 years).
No official income-driven repayment; standard and graduated repayment structures predominate.
Example
Principal
Rate/APR
Plan
Monthly Payment
Total Paid
Sample Scenario
$20,000 (illustrative)
8.0% fixed APR (illustrative)
10-year standard
$243 (illustrative, interest accrues during school if deferred)
$29,200 (assumes full deferment, sample/illustrative)
Application & Disbursement Steps
Confirm eligibility and gather information (student and cosigner details, school info, income assets, credit history).
Complete the Citizens Student Loan application online or through eligible school channels; multiyear approval may be available for some applicants (one hard inquiry at initial approval—subsequent years may require only a “soft” credit check).
Loan is certified by school; you select interest type and repayment plan options.
Both borrower and cosigner (if needed) sign final loan documents electronically or by mail.
Funds are disbursed directly to the educational institution for tuition/fees. Any remaining balance may be refunded by the school to the student for allowable expenses per school policy.
Repayment, Deferment & Forbearance
Repayment typically begins six months after leaving school (“grace period”); immediate and interest-only in-school repayment may also be chosen.
Deferment available for students returning to school, military deployment, or as otherwise offered—must be requested and approved.
Temporary forbearance available for certified financial hardship or medical leave, generally up to 12 months cumulatively (“sample/illustrative”; always verify bank’s current forbearance policy).
Interest accrues during deferment/forbearance and capitalizes unless paid.
Forgiveness & Discharge Pathways
No programmatic Public Service Loan Forgiveness or income-driven repayment forgiveness as with federal loans.
Loan discharge typically available only in the event of the student’s death or documented total and permanent disability, subject to lender criteria.
Discharge for school closure, borrower “defense to repayment,” or bankruptcy is rare; review official Citizens Bank terms for any exceptions.
Risks & Responsible Borrowing
Defaulting on a private student loan can significantly damage credit scores for both borrower and cosigner. Late or missed payments may be reported to major credit bureaus.
Private lenders can accelerate the loan upon default, pursuing collection via internal or external channels; legal remedies (e.g., wage garnishment) are possible in many states.
Because these loans are not dischargeable in most bankruptcies, responsible borrowing and realistic future income projections are essential.
Alternatives & Comparisons
Side-by-Side Comparison
Feature
Federal Loans
Private Loans (Citizens)
Underwriting
FAFSA-based eligibility; no credit for Direct loans (except PLUS)
Credit and income-based; cosigner often required for undergrads
Limited; deferment/forbearance, cosigner release sometimes available, policies lender-specific
Forgiveness Potential
Public service, teacher, IDR endpoints, disability, school closure (subject to program)
Rare; mostly limited to death/disability, subject to Citizens Bank policies
Frequently Asked Questions
How do Citizens Student Loans differ from federal student loans?
Citizens Student Loans require credit review and may need a cosigner; rates and repayment policies differ from federal student loans, which grant broader access and specific protections via the federal government.
Can I use a Citizens Student Loan for all college costs?
Funds can be used for any qualified education expense certified by your school—typically tuition, fees, room, board, books, and other direct costs.
Is there a cosigner release option?
In many cases, yes; Citizens Bank’s cosigner release generally requires a set number of on-time payments and a credit check. Always confirm exact qualifications on the latest official policies.
Does Citizens Bank offer benefits for multiyear borrowing?
Yes. For eligible applicants, Citizens’ “multiyear approval” allows borrowing for future academic years with reduced reapplication (soft credit inquiry only for subsequent draws), streamlining the process for students planning ahead.
What’s the process if I encounter financial hardship?
Contact Citizens Bank directly to request temporary forbearance or discuss repayment assistance. Approvals and durations vary by case and lender policy.
Am I eligible for federal loan forgiveness if I use Citizens Student Loans?
No. Private student loans from Citizens are not eligible for federal forgiveness programs such as Public Service Loan Forgiveness. Limited discharge may apply only for death or disability per lender terms.
Can I refinance my student loans with Citizens?
Citizens Bank offers student loan refinancing, which can consolidate federal and/or private loans into a new private loan (forfeiting federal protections if federal loans included). Confirm eligibility, rates, and trade-offs at the time of application.
Conclusion & Next Steps
Citizens Student Loans may supplement aid for students and families facing college costs that exceed federal loan or scholarship limits, but come with distinct protections and risks that differ from federal loans.
Compare Citizens Bank’s latest official product terms and interest rates with other private and federal student loan options before borrowing.
Consult your school’s official financial aid office for personalized advice, and revisit your budget, repayment plan, and cosigner responsibilities annually to make informed, responsible decisions.
