You did it. You completed a college education, and that is no easy task. Unfortunately, you may now be facing multiple student loan payments that can be overwhelming. Whether you have an undergraduate degree, a graduate or professional degree, you may want to consider Citizens Bank for your student loan consolidation.
Loan Terms and Requirements
Citizens Bank does have some specific requirements you must meet to be eligible for student loan consolidation, referred to as Education Refinance Loans by Citizens. If you have already started repaying your loans, you must have made a minimum of three consecutive on-time payments. Unless you have someone who is qualified co-sign your loan, you will have to show proof of 12 months of continuous income.
The following terms apply to Citizens Bank student loan consolidation: no more than $90,000 in undergraduate loans, $130,000 for graduate loans and $170,000 for professional degree loans. You must have a minimum of $10,000 in student loan debt to qualify.
Although consolidation is convenient because it eliminates multiple payments, it is only beneficial to your finances if you get a lower interest rate than what you are currently being charged on your other loans. If the interest rate is higher, you will end up paying more money over time. If you don’t have a high credit score, you will be facing higher interest rates.
Citizens Bank offers variable and fixed annual percentage rates (APR) for their education refinance loans. A fixed rate remains the same throughout the loan period, while a variable rate will fluctuate. Of course, you credit score does contribute to the rate you receive, regardless if you choose a fixed or variable rate.
Is Consolidation the Best Option?
The answer to this question depends on you and the details of the loans you wish to consolidate. If you have multiple loan payments and you can get an interest rate lower than what you are paying now, then consolidation may save you money in the long-term and allow you to make just one monthly payment. There are many options online to compare consolidation loans and rates so you can determine the best option for your specific situation.
If you consolidate your student loan debt, you will not be eligible for the federal loan forgiveness program, so you should keep that in mind as well. Take some time to review your options and do a little research and you can easily determine if you will benefit from consolidation.