If you’re planning to apply for a private student loan in 2025, Citizens Bank remains a popular lender due to its competitive rates and flexible terms. However, as with any financial decision, it’s essential to know the fine print and key aspects before submitting your application. Here are 7 important things to consider before applying for a Citizens Bank student loan this year.
1. Citizens Bank Offers Loans to Both Students and Parents
Unlike some lenders that only target students, Citizens Bank provides private student loans for both undergraduate and graduate students, as well as parent loans. If you’re a parent looking to help your child with college expenses, you can borrow in your name, which might offer better terms depending on your credit profile.
Additionally, graduate loans are available for MBA, law, health professions, and general graduate programs—each with loan structures tailored to the academic field.
2. You May Not Need a Cosigner — But It Helps
While Citizens Bank allows students to apply independently, many undergraduates won’t qualify without a strong credit history. That’s where a cosigner comes in. Adding a creditworthy cosigner — often a parent or guardian — can improve your approval chances and lower your interest rate.
Even better, Citizens Bank offers a cosigner release option after 36 consecutive on-time payments, provided the borrower meets specific credit and income criteria.
3. Fixed and Variable Rates Are Available
When applying for a loan, you can choose between fixed interest rates that remain constant and variable rates that fluctuate with market trends. Citizens Bank provides both options, with updated rates that are competitive for 2025.
Fixed rates offer predictability, while variable rates may start lower but carry risk if interest rates rise. Make sure to evaluate your personal risk tolerance and repayment timeline when choosing between the two.
4. No Origination or Application Fees
One of the attractive features of Citizens Bank student loans is the absence of hidden fees. You won’t pay any application, origination, or disbursement fees, which can help you keep borrowing costs under control. This is especially helpful when comparing with lenders that do charge upfront costs.
5. Multiple Repayment Options Are Available
Citizens Bank offers flexible repayment plans to suit a variety of financial situations. Options include:
- Immediate repayment (pay interest and principal right away)
- Interest-only repayment (pay interest during school)
- Deferred repayment (no payments until after graduation)
You also get a 6-month grace period after graduation before full payments are required. Choosing the right repayment plan depends on your budget during school and your expected income after graduation.
6. Autopay Discount Can Save You Money
If you sign up for automatic payments from a qualified bank account, Citizens Bank offers a 0.25% interest rate discount. This may seem minor at first glance, but over the life of a 10- or 15-year loan, it can translate to significant savings.
You can also stack this with their loyalty discount (up to 0.25%) if you or your cosigner has an existing Citizens Bank account.
7. Check Eligibility Criteria Carefully
Before applying, ensure you meet the eligibility requirements. To qualify for a Citizens Bank student loan in 2025, you typically must:
- Be a U.S. citizen or permanent resident (or apply with a qualifying cosigner)
- Be enrolled at least half-time in a degree-granting program
- Meet minimum income and credit score thresholds (or apply with a cosigner who does)
If you’re refinancing a student loan, Citizens Bank also offers student loan refinancing to borrowers who have already graduated and meet credit requirements.
Final Thoughts
Applying for a student loan is a major financial decision. Citizens Bank offers a range of student loan products that are competitive and flexible, but it’s essential to understand your responsibilities, options, and potential savings before borrowing.
By carefully evaluating these seven aspects—from repayment terms to rate types—you can better position yourself for a smoother and more cost-effective borrowing experience in 2025.
