Consolidate Student Loans Citizens Bank

7 min read

How much money have you borrowed? How many years have you been paying on them? Well I know what you’re thinking, “I don’t even know how to start consolidating my student loans!” If you are having any problem managing your student loan debt, then we’ve got you covered. We’ll walk you through our simple and effective student loan consolidation program that can eliminate up to $2,300 per month in interest payments.

Consolidate Your Loan

You probably know what your current monthly payment is right now, but do you know how much you owe on each loan? That information will help determine if a consolidation plan makes sense for you. To find out, visit www.citizensbank.com/studentloans and enter in your loan numbers (you will need the account number and loan type). You may find yourself surprised at how much you actually owe. If so, you should consider reevaluating your repayment options. A good rule of thumb is to consolidate only if you can pay off your entire balance in 25-30 years.

Repayment Options

There are several types of student loans out there, including private and federal direct loans, as well as guaranteed and non-guaranteed loans. Private loans are generally more expensive than federal loans, and the government guarantees some kinds of private loans, but not others. In addition, federal loans are either subsidized or unsubsidized. Subsidized means that you get to borrow less money; however, you are still responsible for repaying the whole amount over time. Unsubsidized means that you are expected to repay the full amount immediately. However, you often qualify for lower rates of interest. Once you decide which type of loan works best for you, it’s time to choose between fixed and variable rates. Fixed rate plans offer a set price for a set term. Variable rate loans are based on market fluctuations, but they tend to provide higher interest rates in the first few years of your loan. Of course, you can always refinance, but remember that refinancing with a different lender can cost thousands in fees.

Consider Other Payment Options

If you are looking for a way to reduce your interest rates, consider taking advantage of special offers from lenders who specialize in these programs. Some companies offer a sliding scale of interest rates according to income level, credit score, or downpayment. Also, you may be eligible for a zero percent APR for a certain number of months after graduation (this option is commonly referred to as forbearance).

So, whether you’re considering student loan consolidation or just want to learn more about the steps involved in doing so, you can rest assured that Citizens Bank can help.

Consolidate Student Loans Citizens Bank

Consolidation Loan

A consolidation loan may be the best option for you if you have several federal student loans. Your interest rates could potentially lower across the board if you combine them under one loan instead of many different ones. Each private lender offers its own set of terms and conditions; however, the good news is that we can help you sort out what works best for you. We’re here to give you some guidance regarding how our products work and what you might expect from each.

What Is A Consolidation Loan?

A consolidation loan is when you take a single loan and pay off multiple smaller ones at once. This is done to save you money over time. You can consolidate any type of loan, including private loans. However, we only offer consolidations for federal loans.

Benefits Of Consolidating Federal Loans

If you have a federal education loan, then a consolidation might make sense for you. Here are some reasons why:

Lower Interest Rates – If you have a balance transfer credit card, a consolidation could lower your interest rate. Many companies allow you to reduce your debt by transferring balances to a card with a lower interest rate.

More Money In Your Pocket – If you have multiple loans, you might not get the lowest possible interest rate. By combining them, you could end up getting a lower interest rate than you would otherwise receive.

Easier Payment Schedule – When you have several loans, figuring out who pays what and when can become complicated. But with a consolidation, it becomes much simpler. One payment goes to one lender.

Savings On Payments- When you have several loans with different due dates, you might need to make payments on two or three different days. But with consolidation, everything is included in just one payment.

New Lender – There are times when the company that gave you the original loan simply closes their doors. In those cases, you don’t have to worry about finding a replacement lender. Just ask us if you ever find yourself in that situation.

No Prepayment Penalties – When you have several small loans, you might have to pay fees if you choose to repay early. However, with a consolidation, there are no penalties for prepaying.

Tax Breaks – If you decide to put your consolidation loan toward paying taxes, you will want to know how that affects your tax refund. If you qualify for the American Opportunity Credit, the interest you paid on the consolidation loan will count towards your refund.

Get Out Of Debt Faster – Another benefit of a consolidation is that your repayment schedule is often shorter. That means you should be able to complete it faster and get back on track with paying down your debts sooner.

Consolidate Student Loans Citizens Bank

Consolidate Student Loan – Citizens Bank

If you’re trying to pay off student loan debt, you might want to consider consolidating your loans. You’ll save money on interest rates and lower monthly payments.

You’ll need to have at least $50K in federal student loans in order to consolidate. If you don’t meet the minimum requirement, you could still qualify if the lender agrees to let you reduce your payment amount. You’ll also need to make three consecutive on-time payments in order to qualify. However, if you miss a single payment, you could lose your consolidation eligibility.

Consolidate Student Loans Citizens Bank

Consolidating student loans

If you have a variety of different types of student loans, consolidating them may help you reduce your monthly payments and make ends meet. You’ll need to consolidate if you’re having trouble managing your debt, since each type of loan requires a different repayment plan, interest rate, and payment amount. However, if you don’t consolidate, you could end up paying more in interest than what you borrowed.

Paying off student loans early

You may want to pay off your student loans before you graduate. A longer period between repaying your loans means your balances will increase. That’s because, while the interest accrues throughout the year, you only apply interest once per month. If you consolidate at a lower balance, you could save thousands on interest charges.

Choose a reputable company

When looking to consolidate student loans, choose a company with a good reputation. Do some research about the company you’re considering using and see how their services compare to others. When choosing a consolidation program, ask questions and get information.

Avoid additional fees

Make sure you know exactly what fees you’ll incur when you consolidate student loans. Fees can range anywhere from 0% to 15%, depending on the lender. Make sure you understand all of your options before making any decisions.

Consider a private loan

A private loan is meant to solve your financial problems without affecting your credit score. Private lenders generally offer competitive rates, flexible terms, and no prepayment penalties. But, they might not offer the lowest possible rates either.

Take advantage of tax breaks

Student loan borrowers can take advantage of certain tax breaks. These include income tax deductions, the Earned Income Tax Credit, and even forgiveness programs. Check with the IRS to find out more.

Consolidate Student Loans Citizens Bank

Consolidation

A student loan consolidation is the act of taking several small loans and combining them into one larger loan that can be paid off over a longer period of time. When working with a financial institution, many will provide lower interest rates if you combine your loans into one single payment plan. There are two major types of consolidations, federal and private. Federal consolidates your loans at the government level while private consolidates your loan at the individual lender level.

Citizens Bank

Citizens Bank is one of the largest banks in New York City and offers various deposit accounts including checking, savings, money market, CD’s, IRA’s, credit cards, etc. Their customer service is exceptional and they offer competitive rates and low fees. They have branches throughout the city and their website provides various information regarding account services.

Payday Loans

Payday loans are short term loans that allow borrowers to borrow between $100-$1500 for short amounts of time ranging between 2-30 days and then must repay the full amount plus high fees. If you do not pay back the loan before the due date, then additional fees may apply. Many consider these payday loans to be predatory lenders because the borrower does not qualify for any type of traditional banking product. Interest rates range between 400% and 1,000%, depending on your loan terms.

Borrowing Money

Borrowing money is considered a luxury when compared to the lack of funds most people experience during the month. However, borrowing money is necessary in order to establish a budget. A budget is needed in order to set aside money to save, invest, or spend on other necessities. In order to avoid going into debt, it is best to stick to what you can afford.

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