Citizens Bank announces alternative to federal student loans
Citizens Bank announced the launch of the Citizens Bank Student Loan for Parents, a new alternative to federal loans for parents who are helping students pay for college. With no origination fee, the Student Loan for Parents will save families an estimated average of $627 in annual fees alone and also guarantees approved borrowers receive a lower interest rate than the federal William D. Ford Direct PLUS rate.
The new loan is the latest offering from Citizens Bank designed to help people pay for higher education in a more affordable way, and furthers the Citizens Bank Better commitment to make banking simple, clear and personal for consumers. In addition, the Student Loan for Parents is an option for anyone who is looking to help a student finance their education, allowing parents or other sponsors to finance a student’s education without obligating the student to the debt.
"A college education remains one of the best investments students can make, but many families continue to struggle with the cost,” said Brendan Coughlin, president of Auto and Education Finance for Citizens Bank. “Our new Student Loan for Parents provides approved borrowers with a guaranteed lower interest rate than they can get from PLUS loans, with more term flexibility and no fees. We are excited to be providing this new option for parents as they develop strategies for managing the cost of college.”
Last year, parents spent an estimated $400 million in origination fees through the William D. Ford Direct PLUS loan program. With no origination fees and rates as low as 6.60 percent when borrowers take advantage of rate-reducing benefits, the Citizens Bank Student Loan for Parents offers borrowers an attractive alternative. In addition to an improved interest rate, borrowers of the Citizens Bank Student Loan for Parents can save an average of $627 every year simply by avoiding the Federal Direct PLUS loan’s annual origination fee. The loan is available in multiple repayment terms. In the event the parent does not qualify, Citizens Bank will redirect the customer back to the PLUS program, ensuring the family always has the information they need to make the best loan decision.
The Student Loan for Parents is the latest offering from Citizens Bank, which also offers the Citizens Bank Student Loan, formerly known as the TruFit Student Loan, and the Citizens Bank Education Refinance Loan, which enables borrowers to refinance federal and private student loans. Since the launch of the Citizens Bank Education Refinance Loan last year, the average customer savings is $145 a month, meaning customers are saving thousands of dollars in interest payments over the life of their loans.
Detailed information on qualifications required for the loan is available on the Citizens Bank website and the Citizens One website. Citizens also has a dedicated team of student lending specialists that can be reached by phone at 1-888-411-0262.
