How To Refinance Your student loans with Citizens Bank (Complete Guide)

5 Mins read

Refinancing your student loans with Citizens Bank can help you save money and get a better interest rate. So if you’re looking to get ahead on your student loan payments, consider refinancing with Citizens Bank.

Citizens Bank student loan refinance overview

Refinancing with Citizens Bank may benefit borrowers with a high debt balance and those who already have accounts with Citizens. Among the nation’s largest banks, Citizens has recently faced litigation, including suits filed by federal entities. *Lowest rates always include a 0.25% rate reduction for enrolling in auto-pay, plus an additional 0.25% for bank members (a 0.50% total rate reduction). The variable rate cap is greater than 21.00% or Prime Rate plus 9.00%.

Citizens Bank Refinance Rates & Fees 

Citizens Bank refinances student loans at fixed rates between 4.30% and 9.75% and variable rates between 2.24% and 9.24%. In 2022, Citizens Bank has raised its lowest fixed rate for new loans by 76.2% (from 2.44% APR) and its highest fixed rate by 17.0% (from 8.33% APR). Meanwhile, the lowest variable rate increased by 12.6% (from 1.99% APR), while the highest variable rate increased by 14.4% (from 8.08% APR).

Parent PLUS refinance loans come with fixed rates between 4.30% and 8.91% and variable rates between 2.24% and 8.91%. Medical residency refinancing is also available; fixed rates are between 4.29% and 9.26%, while variable rates start between 2.24% and 8.76%.

Note that the lowest rates include a 0.50% interest rate reduction for enrollment in automatic payments from a Citizens Bank account.

Student Loan Refinance Rates

Additional information about Citizens Bank refinance rates:

  1. Checking your rate with Citizens Bank will not affect your credit score.
  2. They will conduct a soft, not hard, credit inquiry (learn the difference).
  3. Citizens Bank does offer a discount for setting up auto-pay: a 0.25% interest rate reduction.
  4. An additional discount applies when borrowers use a Citizens Bank account to auto-pay: 0.25% interest rate reduction (for a total reduction of 0.50%).
  5. Variable rates are based on the 30-Day SOFR rate (1.11%as of this writing) as published by the Federal Reserve Bank of New York. This means that as the SOFR changes, increasing or decreasing, your variable rate will change, increasing or decreasing correspondingly.
  6. The variable rate cap is greater than 21.00% or Prime Rate (4.75% as of this writing) plus 9.00%.
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How Citizens Bank student loan refinance works

Refinancing allows you to adjust the terms of your individual student loans. This could result in a lower interest rate or extended repayment period, reducing student loan payments. This may make your monthly payments more manageable, allowing you to allocate any freed-up funds directly to the principal so you can pay down the loan faster — improving your credit score.

Let’s say you had one loan you were closer to paying off. One of the benefits of refinancing is you could adjust this loan individually while making regular payments on your other loans or consolidating them separately. If you’re focused on lowering your debt-to-income ratio — especially to make a large purchase like a home or a car — the credit benefits of refinancing may help you meet your goals.

There are important factors to consider when refinancing your federal student loans, as those loans offer a unique set of repayment benefits, which would be negated by refinancing to a private loan. This is where you could benefit from refinancing loans individually; you could refinance outstanding private student loans while keeping your federal loans separate to take advantage of income-based repayment or student loan forgiveness programs. Of course, there are several factors to consider before refinancing student loans.

Simplifying student loan obligations with consolidation

Federal student loan consolidation simply combines your outstanding loans into one loan, and the interest rate is based on the weighted average of the rates on the loans you consolidate. While this simplifies repayment, it doesn’t necessarily help when you’re interested in reducing student loan payments.

When you choose student loan consolidation with a private lender, you may be eligible for a lower rate based on your credit score.

 You also benefit from combining your loans into one easy-to-manage monthly payment. You could even combine federal and private student loans in your new loan as long as you’re comfortable exchanging the benefits of the existing loans. If you’re interested in seeing how the benefits of consolidating student loans could apply to you and what your new loan would look like, use our Loan Estimator tool.

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Refinance for a lower variable rate or lock in a fixed rate

Interest rates are based on credit scores with most private lenders, and the variable rate you receive may be lower than the rate on your current loans. However, it is possible for that variable rate to go up or down each month, and if the rate goes up, your monthly payments will go up, too.

If your current student loans have a variable interest rate, your monthly payment can change as the rate changes. If you refinance into a fixed-rate loan, you’ll have the certainty of consistent monthly payments. However, the fixed rate you get today will likely be higher than the variable rate you have right now.

 Your new monthly payment may be more than your current one, but your payment will never increase.

Applying for a private refinance loan could help you reduce student loan payments and gain more control over your debt. You could take advantage of lower student loan interest rates, longer loan terms, and lower monthly payments to free up funds and focus on what’s next.

With low-interest rates, now’s a great time to refinance to lower your student loan payments, boost your cash flow, and save the money you need to reach your other financial goals.

Citizens Bank Student Loan Refinance Credit Score Requirements

To qualify for refinancing with Citizens Bank, all borrowers must meet the criteria below.

  • 1. Citizenship Requirement: U.S. citizenship or permanent residence – OR – apply with a qualifying co-signer.
  • 2. Income Requirement: $24,000 minimum annual income.
  • 3. Credit Score Requirement: unspecified.
  • 4. Graduation Requirement: none.
  • 5. Location Requirement: borrowers must currently live in the United States.
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Additional restrictions apply for specific individuals and loans.

  • 1. Borrowers may not currently be enrolled in school.
  • 2. Associate’s degree earners and borrowers who have not/did not graduate 
  • 3. must have made at least 12 consecutive qualifying payments on their student loans before applying.
  • 4. All borrowers may apply to borrow up to $300,000.
  • 5. Graduate degree holders and parents may be approved to refinance up to $500,000.
  • 6. Borrowers with professional degrees may be approved for up to $750,000.

Citizens Bank Student Loan Refinance Approval Timeframe.

It takes 4 to 16 business days to get money from a Citizens Bank personal loan in most cases. That includes both the time it takes to get approved and the time it takes for the funds to be delivered after approval.


Can I refinance my student loans with Citizens Bank?

Yes, Citizens Bank is a great choice for refinancing student loans. They have a wide selection of loan programs and have been in the business of lending money for years. 

Is Citizens Bank a good bank?

Citizens Bank is a good bank, and it has a wide variety of products and services to meet the needs of its customers.

Which is better, Bank of America or Citizens Bank?

 Bank of America is a better option for those looking for stability and reliability, while Citizens Bank is more affordable for those on a budget. Both banks offer great customer service, but Bank of America wins points for being more user-friendly.

Is Citizens Bank a black-owned bank?

Yes, Citizens Bank is a black-owned bank.

Is Citizens Bank considered a big bank?

Yes, Citizens Bank is considered a big bank by many. Citizens Bank has what you need if you’re looking for a traditional bank with a wide range of services or want to do some online banking. 


If you’re looking for a reliable lender that will work with you to help you refinance your student loans, Citizens Bank should be at the top of your list. They have a great track record and always put the customer first. Plus, their rates are very competitive. 

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