Citizens Student Loan Refinance Review (Up to $1,250 Cash-Back Bonus)

What you need to know:

• Citizens offers student loan refinancing, as well as private loan options for undergraduates, graduates, parents and professional students.
• It has strict eligibility requirements, including a minimum income and a good credit score. Borrowers are encouraged to add a cosigner to their refinancing application.
• Citizens customers can choose from a variety of flexible loan repayment options ranging from five to 20 years.
• You can earn up to $1,250 cashback when you refinance with Citizens using the Student Loan Planner® referral link via the Credible platform.

Citizens is one of the oldest and largest financial institutions in the United States. The company offers a variety of services and loan types, including student loan refinancing. It advertises annual average savings of $4,039 with its Citizens Education Refinance Loan, making it a competitive option for refinancing.

Read on for our Citizens Student Loan refinance review.

Citizens student loan refinancing review

The Citizens Education Refinance Loan allows borrowers to refinance their federal student loans and private student loans into one affordable payment. It gives borrowers the opportunity to lower monthly payments, fix a variable interest rate or remove a cosigner. You can also say goodbye to your loan servicer.

Here’s what one of our readers had to say about their experience refinancing with Citizens:

“I had a great experience with Citizens. They were quick to help and always helped me find the right way to finance my loan and make payments good for me. Their interest rates were good as well.”

January 2024 Student Loan Planner Reader Survey

Pros

• Low interest rates. Citizens offers competitive refinancing interest rates. You can get fixed rates or variable-rate loans. It also has a loyalty discount and autopay discount that total up to 0.50% when you sign up for automatic payments. Getting this interest rate discount can help lower costs.
• High loan limit. It provides refinancing loans ranging from $10,000 all the way up to $300,000 for borrowers with a bachelor's degree or below. The loan limit bumps up to $500,000 for borrowers with a graduate degree and $750,000 for a professional degree.
• Flexible repayment options: Citizen Bank’s flexible repayment terms of 5, 7, 10, 15 or 20 year loans could help decrease your monthly payments.
• Cosigners are allowed and can be released: Citizens allows borrowers to use a cosigner when they refinance their student loans. You can also apply for cosigner release once you’ve made 36 consecutive on-time payments of principal and interest.
• No fees: Citizens won't charge you a prepayment penalty if you opt to pay more than your monthly payment or pay off your student loan debt ahead of time. It also doesn't charge application, origination fees or disbursement fees.

Cons

• No in-school payments. You must be out of school and making current student loan payments to refinance with Citizens, unless you’ve already completed undergrad.
• Strong credit history required: Citizens does not specify a minimum credit score, but the company does require borrowers to have good credit with a significant credit history to refinance (hence why it allows cosigners).
• Minimum gross annual income: Borrowers also need to earn at least $24,000 annually (or have a combined salary of $24,000 with a cosigner) to be eligible.

Eligibility requirements

The refinance program with Citizens student loans is only available to borrowers who are not currently in school.

Other student loan refinance eligibility requirements include:

• Borrowers must be a U.S. citizen, permanent resident or resident alien with a valid U.S. Social Security number, living in the United States. Resident aliens must apply with a cosigner who is a U.S. citizen or permanent resident.
• You must have at least $10,000 in student loans to refinance.
• If you have an Associate’s degree or no degree, you must have made at least 12 qualifying payments after you left school.

Loan application process

If you use Citizen Bank to check your interest rate, you’re only subject to a soft credit pull, which does not affect your credit score. A hard credit check and inquiry will show up on your credit report when you fill out a full application.

You’ll be asked to submit your standard contact and personal information when you seek your Citizens refinance interest rate. This includes your name, address, date of birth, social security number, email address and phone number.

You’ll also have to provide the following:

• Highest degree attained
• Total loan amount you want to refinance into a new loan
• Total current monthly payments

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. If you have a new job and haven’t been paid yet, Citizens will request an acceptance letter or contract that confirms your new employment and includes your salary.

Refinancing options for parents

Citizens also has a refinancing program for parents who are paying for their children’s education. So, if you have Parent PLUS loans, you qualify. You need to have been part of the original loan, either as a primary borrower or cosigner, to be eligible to refinance with Citizens student loans.

Eligibility requirements

If you’re a parent, your child does not need to have graduated for you to be eligible to apply for the Citizens Education Refinance Loan for Parents program. Additional requirements include:

• Parent must have at least $10,000 to refinance ($500,000 maximum limit).
• Borrowers must be U.S. citizens, permanent residents or a resident alien with a valid U.S. social security number.
• The primary applicant has to be the primary borrower or cosigner on the loan that is going to be refinanced

Remember, Citizens requires a good credit score and history. So, if you don’t have one, you may be better served by refinancing with a lender with less stringent requirements.

Application process

When you apply, you’ll submit the same information students do. Citizens Education Refinance Loan for Parents program application process can be done in three steps:

1. Complete the online application
2. Select your interest rate and loan terms (5, 7, 10, 15 or 20 years)
3. Sign and accept your loan documents (electronically) upon approval

You’ll also be asked for your total monthly income and monthly rent or mortgage payment.

Who should refinance with Citizens?

Your current financial situation will likely dictate if refinancing with Citizens is the right choice for you. Based on what we’ve seen, it’s best for borrowers who:

• Have a cosigner
• Are seeking a low monthly payment
• Need flexibility when it comes to their loan’s length or repayment options

Citizen Bank’s refinance program appears to be a good fit for low to mid-level earners. In Student Loan Planner® ‘s 2022 survey of borrowers who refinanced with Citizens, 61% earned $80,000 annually or less.

In our most recent January 2024 survey, we found that Citizens outperformed the other top refinancing lenders when working with therapists and counselors. And even though it didn’t win majority market shares, Citizens tends to do decently with corporate employees, dentists, government employees, lawyers, nurses and nurse practitioners.

If you’re looking for a more well-rounded lender with solid aesthetics, Citizens might be lacking in that department. But if you prefer a more traditional banking experience with exceptional customer service, Citizens can be a great option.

“I recommend Citizens to everyone who asks. Their customer service team is very helpful.”

January 2024 Student Loan Planner Reader Survey

Whether or not Citizens is the right lender for refinancing will depend on what factors matter most to you. If the financial aspect is your sole concern, Citizens could work well. Be sure to review prospective loan payments, repayment plans, variable APR versus fixed interest rates and total costs.

Final thoughts for our Citizens student loan refinance review

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. But it doesn’t aggressively market to consumers directly. Instead, it relies on student loan refinancing platforms like Credible to reach borrowers consistently.

If you’re interested in refinancing with Citizens, you’ll find the best rates and refinancing bonus by using our Student Loan Planner® referral link. Note this link will take you to the Credible platform where you can then choose to refinance with Citizens and earn a $350 to $1,250 cashback bonus. This step is important as the bonus is paid through Credible and Student Loan Planner®.