Education Finance
770 Legacy Place
Dedham, MA 02026
1-888-333-0169 | www.citizensbank.com/edu
March 30, 2015
Mr. Mark Zaffalon
Financial Aid Office
SUNY College at Fredonia
280 Central Avenue
Fredonia, NY 14063
Dear Mr. Zaffalon,
Thank you for the opportunity to provide information about Citizens Bank and our Student Loan products.
Citizens Bank champions educational opportunities for students and as a leading student lender; we offer a
robust suite of borrowing solutions to meet the needs of students and their families.
Beginning April 1, 2015, we are proud to introduce The Citizens Bank Student Loan for Parents. It is
guaranteed to offer an attractive alternative to the Federal Direct PLUS Loan for qualified applicants, with no
origination fee! This new product will give families an opportunity to secure a private student loan in the
name of a parent, or other sponsor, rather than adding to the student’s overall indebtedness.
We have a proven track record of being an educated resource and successful industry advocate, and we rank
among the nation’s top five private student lenders. With three decades of experience in the student loan
industry, we are committed to offering products that are simple, clear, and personal while providing worldclass service to both our school clients and borrowers.
Communicating the costs early and often throughout the loan cycle is important to us and we are the first and
only in the industry to offer our Annual Summary - “Know What You Owe” – reminding our customers how
much they’ve borrowed already and how much their monthly payment will be even if they chose to defer
payment until after graduation.
Over 400 schools recommend the Citizens Bank Student Loan to their student borrowers. Our Account
Executives work closely with schools ensuring a coordinated approach to our customers - your students. For
three decades, our unwavering goal has been to support our customers who seek a higher education. I look
forward to working with you in the year ahead and sharing in our mutual goal of helping students achieve an
affordable college education. Please contact me if I can provide any further information.
Sincerely,
Donna R. Shelby
Account Executive
Citizens Bank Student Loans
1. What are the borrower benefits?
•
Choice of Fixed or Variable Rate - Upon approval, all borrowers will have a choice of a fixed or
variable rate loan.
•
Loyalty Benefit - Our Loyalty Benefit allows existing bank and prior Citizens Bank Student Loan
customers to receive an immediate 0.25 percentage point interest rate discount on their new TruFit
Student Loan.
•
ACH Benefit - Borrowers may receive a 0.25 percentage point interest rate reduction by authorizing
our servicer to automate payments during repayments from any eligible bank account.
•
Zero Fees - The Citizens Bank Student Loan programs have no application, origination or
disbursement fees.
•
Co-signer Release - The borrower may apply for co-signer release after making 36 consecutive
principal and interest payments on-time.* The student borrower must meet credit and income
guidelines at the time of application for the release.
•
International Student Co-signer Release – International students may also apply for co-signer
release by demonstrating U.S. citizenship or permanent resident status and making 36 consecutive
principal and interest payments on-time.* The student borrower must meet credit and income
guidelines at the time of application for the release.
•
Loan Forgiveness - In the unfortunate event of the student borrower’s death or total and
permanent disability, the Citizens Bank Student Loan will be forgiven, regardless of whether the
loan is co-signed.
•
Choice of Repayment Options - The Citizens Bank Student Loan provides students with a choice of
repayment options. Students may choose from:
• Deferred - Students defer payment until 6 months after graduation.
• Interest-only - Students make interest-only payments while in school.
• Immediate - Students make payments while in school.
•
No Prepayment Penalty - There is no prepayment penalty for the Citizens Bank Student Loan.
* On-time payments are defined as within 15 days of the due date. Lump sum payments do not qualify. Borrower cannot have used any
forbearance prior to receiving the co-signer release benefit.
Citizens Bank recognizes that many students seek advanced degrees to further their education. We offer
several enhanced benefits for students pursuing graduate degrees.
•
Citizens Bank Student Loan for Medical and Dental Students — Student borrowers applying for a
Citizens Bank Student Loan who are seeking allopathic or osteopathic medicine and dentistry
degrees are eligible to borrow up to $225,000 in aggregate loan debt. If the student borrower
enrolls in an eligible internship or residency program as defined by lender, they are eligible for a
maximum of 48 months of deferment. Interest will be capitalized at the end of a residency or
internship deferment.
(Proprietary and Confidential)
•
Citizens Bank Student Loan for MBA and Law Students — Student borrowers applying for a
Citizens Bank Student Loan who are seeking their business degree (MBA) or law degree (JD) are
eligible to borrow up to $175,000 in aggregate loan debt.
•
Citizens Bank Student Loan for Graduate Students — Student borrowers applying for a Citizens
Bank Student Loan, who are seeking their graduate degree, including other health professions
degrees not listed above, are eligible to borrow up to $150,000 in aggregate loan debt. If
the health professions student borrower enrolls in an eligible internship or residency program as
defined by lender, they are eligible for a maximum of 48 months of deferment. Interest will be
capitalized at the end of a residency or internship deferment.
2. What are the enrollment requirements?
Students must be enrolled in a degree-granting program at an approved institution at least half-time as
certified by the school of attendance to qualify. Students completing certificate programs are ineligible.
3. Does the student have to be making Satisfactory Academic Progress?
No. Satisfactory Academic Progress is not required.
4. Does your loan program offer borrowers a prior balance option?
Yes. The Citizens Bank Student Loan can be used for past due balances. Loan applications received up to
180 days after the end of the enrollment period will be processed provided that the student borrower is
currently enrolled at least half-time and is working toward his/her degree or has recently graduated.
5. What is your interest rate range?
The Citizens Bank Student Loan offers borrowers a choice of fixed or variable interest rates. Our current
interest rates are:
Citizens Bank Undergraduate Student Loans
•
o
o
Variable Rate Option: Interest rates range from LIBOR* + 2.50% to LIBOR + 9.25%.
Borrower with a co-signer: LIBOR + 2.50% to LIBOR + 9.00%
Borrower only: LIBOR + 3.75% to LIBOR + 9.25%
o
o
Fixed Rate Option: Interest rates range from 5.75% to 11.75%.
Borrower with a co-signer: 5.75% to 11.75%
Borrower only: 6.75% to 11.75%
•
Citizens Bank Graduate Student Loans
•
•
•
Medical (MD/DO) & Dental (DDS/DMD) Students
o Variable Rates: 1-month LIBOR* + 2.50% - 8.25%
o Fixed Rates: 4.50% - 10.50%
MBA & Law Students
o Variable Rates: 1-month LIBOR* + 2.50% - 8.50%
o Fixed Rates: 4.75% - 10.75%
All other graduate disciplines
o Variable Rates: 1-month LIBOR* + 2.50% - 8.75%
o Fixed Rates: 5.25% - 11.25%
(Proprietary and Confidential)
*Variable rate. Based on the one-month London Interbank Offered Rates (“LIBOR”) published in The Wall Street Journal on the
twenty-fifth day, or the next business day, of the preceding calendar month. Current LIBOR .17% as of February 25, 2015.
Citizens Bank Parent Loan
The Citizens Bank Student Loan for Parents has no application, origination or disbursement fees for all
borrowers. We offer our borrowers a choice of fixed interest rates in 5 and 10 year repayment terms. Our
current interest rates are:
Fixed Rate:
Five Year Term: 7.10%
Ten Year Term: 7.20%
6. Do you have a co-signer release policy?
Citizens Bank Student Loan® borrowers may apply for cosigner release after making 36 consecutive on-time
payments of principal and interest. The student borrower must meet certain credit and income guidelines
when applying for the cosigner release. Applicants for cosigner release must be a U.S. Citizen or Permanent
Resident. For the purposes of keeping this benefit, on-time payments are defined as payments received
within 15 days of the due date. Applications for cosigner release may be submitted no more than one time
each calendar year.
7. What are the fees that borrowers are required to pay?
The Citizens Bank Student Loan has no application, origination or disbursement fees. Late payment and
returned check fees are the only fees that may be assessed.
8. Please describe your forbearance and deferment options.
Under certain circumstances a borrower may request a deferment of payments. There are no fees charged
for deferments or forbearances. The following are available:
•
In-School Period - Student borrowers have the option to defer principal and interest or defer
principal and pay interest as long as the student borrower remains enrolled at an approved
school. In-school deferment is capped at eight years. Once the initial six month grace period is
used, it will not be re-instated.
•
Residency or Internship Program Participation - If the student borrower enrolls in an eligible
internship or residency program as defined by lender, they are eligible for a maximum of 48
months of deferment.
•
Military Deferment - Student borrowers who are members of the National Guard or the Ready
Reserves called to active duty for a period of more than 30 days or a regular active-duty member
of the Armed Forces reassigned to another duty station due to a military mobilization may
request a military deferment. During this deferment period, no minimum payments are required.
•
Hardship Forbearance - Student borrowers and/or co-signers who are experiencing temporary
financial difficulty may temporarily postpone principal and interest repayment through approval
of hardship forbearance. Delinquent accounts may be granted hardship forbearance to bring the
account current in no more than two month increments, with a maximum of 12 months available
during the life of the loan.
9. What options do borrowers have to defer repayment of interest and principal while attending school?
(Proprietary and Confidential)
All Citizens Bank Student Loan borrowers are given a choice of repayment options upon application.
Borrowers may choose from:
• Deferred - Students defer payment until 6 months after graduation.
• Interest-only - Students make interest-only payments while in school.
• Immediate - Students make payments while in school.
The Citizens Bank Student Loan for Parents offers borrowers a choice of repayment method and term to
best meet their needs. We offer immediate and interest-only repayment with a choice of a 5 or 10 year
term.
•
•
Immediate: Make payments toward principal and interest beginning 30-45 days after
disbursement.
Interest-only: Make payments solely toward interest while the student is enrolled in school and
begin making principal and interest payments 6 months after the student is no longer enrolled.
10. What is your Average Interest Rate Margin for our approved students?
For 2014-2015, the average interest rate margin for SUNY College at Fredonia students applying for our
variable rate option was LIBOR* + 5.13%. For SUNY College at Fredonia borrowers who chose our fixed rate
option, the average interest rate was 8.33%.
*Variable rate. Based on the one-month London Interbank Offered Rates (“LIBOR”) published in The Wall Street Journal on the
twenty-fifth day, or the next business day, of the preceding calendar month. Current LIBOR .17% as of February 25, 2015.
11. What is your loan approval rate for SUNY College at Fredonia?
For Academic Year 2014-2015, the approval rate for SUNY College at Fredonia borrowers was 72%.
12. Do you offer a grace period for repayment?
Student borrowers are eligible for a six (6) month grace period. Principal and interest repayment begins six
(6) months after the student graduates, withdraws, or drops below half-time enrollment status. If the
borrower has elected interest-only payments while in school, interest-only payments continue to be
required during the six (6) month grace period. If a borrower chooses immediate or interest-only
repayment, their initial payment is due 20-40 days after the first disbursement.
13. What are your annual and aggregate limits?
•
•
•
Annual Minimum: $1,000
Annual Maximum: Cost of education less financial aid
Maximum aggregate limit: $120,000 (undergraduate)
$150,000 (graduate)
$175,000 (MBA and law)
$225,000 (medical and dental)
14. What are the repayment terms?
The Citizens Bank Student Loan for Undergraduate and Graduate Students allows borrowers a choice of a 5,
10 or 15 year repayment term for both the variable and fixed rate options.
The Citizens Bank Student Loan for Parents offers borrowers a choice of repayment term to best meet their
needs. We offer a choice of a 5 or 10 year repayment term.
(Proprietary and Confidential)
•
•
5 year term: Offers lowest rate and lowest total cost of borrowing.
10 year term: Offers lower monthly payments and higher total cost of borrowing.
15. Could the student's portfolio be sold?
Citizens Bank does not intend to sell its Citizens Bank Student Loan. Should loans be sold, Citizens Bank will
only do so if the third party purchasing the loans agrees to honor all of our promises to the borrower,
including all promised benefits that they are eligible to receive or have received.
16. Do you offer other financial or banking products and services?
Yes. Citizens Bank is a full service financial institution with products for all life events, including financing
an education. We work hard every day to develop lasting relationships with all of our customers, from
individuals to institutions. All of our programs come with highly personalized service to ensure we
effectively meet your needs and those of your students. It is the belief of Citizens Bank that customer
relations in the student loan industry go beyond simply providing good service.
As a good bank, we’re committed to helping young citizens get off to a great start. Our checking accounts
are an easy and affordable way for students to start flexing their financial independence with no fee debit
card for cash at Citizens Bank ATMs or to make purchases in store and online, easy 24/7 account access
through online and mobile banking, ability to pay bills from anywhere on a mobile device as well as email
and mobile alerts.
Citizens Bank Education Refinance Loan
The Citizens Bank Education Refinance Loan lets borrowers refinance or consolidate all of their private and
federal student loans at a competitive rate and simplify repayment into one, new private student loan with
one monthly payment. Refinancing private or federal student loans is a personal decision and we are here
to help; whether borrowers are looking:
• For the convenience of repaying one monthly private student loan payment
• To refinance a variable rate into a fixed interest rate loan
• To potentially lower their interest rate
• To lower their monthly payment, increase their monthly cash flow by extending their repayment period
Refinancing may not be for everyone depending on the borrower’s original private and federal student loan
terms. We recommend borrowers read The Factors to Consider and use The Loan Estimator Tool to
evaluate repayment options to determine if the Education Refinance Loan might be right prior to
completing the application. To learn more or apply, visit www.citizensbank.com/student-loans/educationrefinance-loan.aspx or contact our experienced Education Finance Specialists available from 8:30 AM to
8:00 PM, Monday through Friday, at 888-333-0128 or [email protected].
Rates and Fees – Education Refinance Loan
The Citizens Bank Education Refinance Loan offers no application, origination or disbursement
fees for all borrowers. We offer our borrowers a choice of fixed or variable interest rates 5, 10,
15 or 20 year repayment terms.
•
•
Variable Rate Option: Interest rates range from LIBOR* + 2.65% to LIBOR + 7.29%.
o Borrower with a co-signer: LIBOR + 2.65% to LIBOR + 7.29%
o Borrower only: LIBOR + 2.65% to LIBOR + 7.19%
Fixed Rate Option: Interest rates range from 5.24% to 9.39%.
o Borrower with a co-signer: 5.24% to 9.39%
(Proprietary and Confidential)
o
Borrower only: 5.24% to 9.39%
* Variable rate. Based on the one-month London Interbank Offered Rates (“LIBOR”) published in The Wall Street Journal on the twenty
fifth day, or the next business day, of the preceding calendar month. As of February 25, 2015, LIBOR is .17%.
Eligibility – Education Refinance Loan
This loan is available for private and federal student loans. However, graduate and undergraduate private
and federal loans may be consolidated together. Applicants must be in repayment on their existing private
and federal student loan(s) and cannot be currently enrolled.
o
o
Borrowers with a bachelor’s degree or higher may be eligible to refinance their private and
federal student loan(s) upon making 3 consecutive, on-time monthly payments of principal and
interest.
Borrowers without a bachelor’s degree may be eligible to refinance their private and federal
student loan(s) upon making 12 consecutive, on-time monthly payments of principal and
interest.
If applying on their own, the borrower must demonstrate 12 consecutive months of recent earnings history.
Borrowers must be a U.S. citizen, permanent resident or resident alien with a valid U.S. Social Security
Number residing in the United States. Resident alien applicants require cosigners. Cosigners (if applicable)
must be a U.S. citizen or permanent resident with a valid U.S. Social Security Number residing in the
United States.
Borrower Benefits – Education Refinance Loan
Consolidating or refinancing student loans could help borrowers receive a lower interest rate and one
convenient loan payment each month, which may be lower than their current loan payment. Students will
also have the peace of mind and simplicity of having all their private and federal student loans with one
trusted lender who offers the following benefits:
• Loyalty Discount: our new Loyalty Benefit allows existing bank and prior TruFit Student Loan
customers to receive an immediate 0.25 percentage point interest rate discount on their new
Education Refinance Loan.1
• Automatic Payment Discount: Borrowers may receive a 0.25% interest rate reduction by authorizing
our servicer to automate payments from their bank account during repayment.2
• Cosigner Release: Cosigner may be released from loan responsibility after making 36 consecutive,
on-time principal and interest payments.*
• Loan Forgiveness: In the unfortunate event of the primary borrower’s death or total and permanent
disability, the cosigner will be released from further obligation for repayment of the Education
Refinance Loan.
• In-School Deferment: Borrowers may receive an In-School Deferment if, after the Disbursement Date
of the loan, the borrower re-enrolls at least half time in a school that is both degree-granting and
Title IV eligible. The In-School Deferment period will end on the earlier of 4 years from the date of
enrollment in school or when the borrower ceases to be enrolled at least half time in such school.
* On-time payments are defined as within 15 days of the due date. Lump sum payments do not qualify. Borrower cannot have
used any forbearance prior to receiving the co-signer release benefit.
Loan Limits – Education Refinance Loan
•
•
Minimum — $10,000
Maximum Loan Amount —
$90,000 (bachelor’s degree and below)
$130,000 (graduate and doctoral degrees, including MBA)
(Proprietary and Confidential)
$170,000 (professional degrees such as dental, medical and law)
Repayment Options – Education Refinance Loan
• Payments of principal and interest begin immediately.
• 5, 10, 15 or 20 year repayment options
The 2015-2016 academic period will see some significant changes to our product suite. We plan to launch a
new Parent Loan, designed to give parents or other sponsors the ability to borrow to finance a student’s
education without the student incurring any debt burden. This product will offer low fixed rates and unlike
the Federal PLUS loan will not have any origination fees.
In addition to the Parent Loan, we intend to roll out an option for qualified borrowers to lock in a
commitment for their full private lending need through their anticipated graduation date. This multi-year
option will have a stream lined process in subsequent years and allow for students and their families to
have the peace of mind knowing the financing they need to complete their degree is secured.
(Proprietary and Confidential)
Citizens Bank Disclaimer
We understand that SUNY College at Fredonia agrees to respect and protect the security and confidentiality of
any information contained in this response. SUNY College at Fredonia shall ensure that all of its directors,
officers, employees, representatives, agents and affiliates will comply with this notice of confidentiality.
Citizens Bank reserves the right to modify or discontinue products, services, and the program features and
benefits (such as interest rate reductions), at any time without notice. Changes to these benefits, if any, will
affect only applications taken after the changes occur. Should Citizens Bank need to make changes to any of
our programs, we will notify you immediately. Applicants should check our website
(www.citizensbank.com/studentloan) close to their loan application date to obtain current information
regarding our product offerings.
1) Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on a
new Citizens Bank Student Loan or Education Refinance Loan if the borrower or their co-signer (if applicable)
has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable)
have submitted a completed application authorizing us to review their credit request for a Citizens Bank
Student Loan or Education Refinance Loan. The following are qualifying accounts: any checking account,
savings account, money market account, certificate of deposit, automobile loan, home equity loan, home
equity line of credit, mortgage, credit card account, Education Refinance Loan or Citizens Bank Student
Loan. This discount will be reflected in the interest rate disclosed in the borrower’s Approval Disclosure that
will be provided to the borrower once the loan is approved. There is a limit of one loyalty discount per loan,
and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the
loan. Rates and offer subject to change. All accounts, loans and services subject to individual approval.
2) ACH Benefit: During periods when payments are due, the borrower will be eligible to receive a 0.25
percentage point interest rate reduction on their loans by authorizing our loan servicer to automatically deduct
payments each month from any bank account designated by the borrower. The benefit is not available when
payments are not due, such as during deferment or forbearance or during periods where the borrower cancels
automatic deductions. If our loan servicer is unable to successfully withdraw the automatic deductions from
the designated account two or more times within any 12-month period, the borrower will no longer be eligible
for this benefit.
We, Citizens Bank, (a division of Citizens, N.A.), may sell your student loan to a third party. We will only do so
if the third party agrees to honor all of our promises to you, including all promised benefits that you are
eligible to receive or have received.
(Proprietary and Confidential)