The state of student loan forgiveness: What borrowers need to know
The Biden administration continues to push for student loan forgiveness options.
In 2022 the Biden administration unveiled a federal student loan forgiveness plan in which millions of borrowers would have qualified for up to $20,000 in student debt cancellation. In June 2023, the plan was stricken down by the Supreme Court, which held that the HEROES Act does not authorize the forgiveness plan as presented. Though the Biden administration's plan for blanket forgiveness did not come to fruition, there are still ways of pursuing student loan forgiveness. Here's everything you need to know about the current state of affairs and how you may be able to qualify.
Hanneh Bareham has been a personal finance writer with Bankrate since 2020. She started out as a credit cards reporter before transitioning into the role of student loans reporter. She is now a writer on the loans team, further widening her scope across multiple forms of consumer lending.
Heidi Rivera is a personal finance writer and reporter for Bankrate. Her areas of expertise include personal loans, student loans and debt consolidation, in addition to data collection and analysis.
Aylea Wilkins has been at Bankrate since 2019, editing content in student, personal and home equity loans and auto, home and life insurance before taking on editing content in a variety of other categories. She has nearly a decade of editorial experience with a primary focus on helping people confidently make financial and purchasing decisions by providing clear and unbiased information.
Only federally-owned student loans qualify for forgiveness programs. If you practice a certain profession– particularly in public service, like educators and first responders– you may qualify for Public Service Loan Forgiveness or Perkins Loan Forgiveness (though the latter is for a loan type discontinued in 2017).
Being on an income-driven repayment plan for your student loans may qualify you for eventual loan forgiveness. Several repayment plans qualify in this category. After 10, 20 or 25 years in repayment, any remaining balance you have may be eligible for student loan forgiveness through the U.S. Department of Education.
In 2022, President Joe Biden announced a plan to forgive up to $20,000 in student loans for qualifying borrowers. The Supreme Court struck down this plan in summer of 2023, stopping this specific debt relief effort.
Plans are still underway to relieve student loan debt for students misled by for-profit colleges through the Borrower Defense to Repayment Program, which a 5th Circuit Court of Appeals blocked in August 2023. The court is slated to hear a challenge in November 2023.
You may still be eligible for student loan forgiveness even without the blanket loan forgiveness discussed. Many federal loans may qualify for another forgiveness program, though, so be sure to know what professions, loan types, and repayment plans qualify.
Your future federal loans may qualify for a forgiveness program, as long as they are publicly funded. Private student loans do not qualify for forgiveness programs.
If you are currently enrolled as an undergraduate student, you’ll want to start thinking now about the repayment process. Certain repayment plans will qualify you for eventual forgiveness, including the recently-announced Saving on Valuable Education (SAVE) plan. Also as you consider your plans for after graduation, know that some states offer loan repayment incentives for professionals who become full-time residents.
You may qualify for Public Service Loan Forgiveness (PSLF) based on your employer. Members of the military may also qualify for various student debt relief programs, including deferment, caps on interest rates, and loan discharge.
Co-signers on Parent PLUS loans may still reach loan forgiveness if the student becomes eligible for PSLF. Alternatively, eligible borrowers may consolidate their debts into a Direct Consolidation Loan and apply for an income-based repayment plan. After a number of qualifying income-based repayments, any remaining balance can be forgiven.
Pell Grant recipients may borrow student loans as a part of their broader financial aid packages. You are likely to qualify for subsidized student loans and other types of aid based on financial need.
Your loans aren't eligible for federal student loan forgiveness programs. Check with your private student loan servicer to see if it offers payment hardship relief or loan forgiveness.
Federal Family Education Loans (FFEL) are privately owned and thus do not qualify for federal student loan forgiveness programs. For your FFEL loan to be eligible for PSLF, you will need to consolidate it into a Direct Consolidation Loan.
The student loan payment pause that placed borrowers in forbearance during the COVID-19 pandemic ended in September 2023. Though this sweeping payment pause has ended for most borrowers, you may still qualify for payment forbearance or deferment depending on your circumstances. Now that student loans are back in repayment for most borrowers, you may feel the squeeze of payments being due for the first time since 2020. If so, you may find some relief through an income-driven repayment plan.
The Biden administration continues to push for student loan forgiveness options.
Here’s what we know so far about Biden’s broad student loan forgiveness plan.
The U.S. Department of Education released news that many borrowers will receive notification that their loans will be discharged.
This marks the largest student loan discharge made by the Education Department.
The Biden administration continues to push for student loan forgiveness options.
Here’s what we know so far about Biden’s broad student loan forgiveness plan.
The U.S. Department of Education released news that many borrowers will receive notification that their loans will be discharged.
This marks the largest student loan discharge made by the Education Department.
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The Bankrate scoring system evaluates lenders' affordability, availability and customer experience based on 11 data points selected by our editorial team. | An annual percentage rate (APR) represents the interest and fees you'll pay on top of your initial amount every month. A fixed rate will not change during your repayment period. | The range of loan amounts that a lender will service. The maximum value is the largest amount a lender will give although this amount may not be available to borrowers who don’t have good or excellent credit. Amount ranges may vary for non-loan products. Term refers to the amount of time you have to repay the loan. | |
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Fixed APR from 5.48- 8.69% | Loan amount $10k- No Max | Education Loan Finance Program from SouthEast Bank – Loan Interest Rates & FeesYour Starting Interest Rate (upon approval)The interest rate you pay will be determined after you apply. It will be based upon your credit history, the loan term you select, and other factors. If approved, we will notify you of the rate you qualify for.Your Interest Rate during the life of a loan: Fixed-Rate LoansYour rate is fixed and will depend on the loan term that you select. This means that your interest rate will never change during the life of your loan.Your Interest Rate during the life of the loan: Variable-Rate LoansYour rate is variable. This means that your rate could move lower or higher than the rates on your disclosure. Although the interest rate will vary after you are approved, the interest rate will never exceed 9.95% for the 5-year, 7-year, 10-year, 15-year, or 20-year term. For variable rate loans applied for after 7:00 PM EST on January 7, 2022, the variable interest rate will be based on a publicly available index, the Prime Rate of Interest as published in the Money Market section of the Wall Street Journal. These variable rates will be calculated and set each month by adding a margin between -3.22% to 0.49% to the Prime Rate. If you have an existing variable rate loan that uses the London Interbank Offered Rate (LIBOR) as the benchmark rate index, your loan will continue to use LIBOR as the benchmark rate index. These rates will be calculated by adding a margin between 0.00% to 5.88% to the 3-month LIBOR. Your rate will not increase more than once quarterly. ELFI will notify borrowers with existing variable rate loans originated prior to 7:00 PM EST on January 7, 2022, of the expected change from LIBOR to the Prime Rate in the future.Loan Fees & ExampleApplication Fee: $0Origination Fee: 0% Loan Guarantee Fee: 0% Prepayment Fee: 0% Late Charge: the lesser of 5% of the past due amount or $50 Returned Check or Insufficient Funds Charge: $30 For example, a 10 year loan with a fixed rate of 6% would have 120 payments of $11.10 per $1,000 borrowed. Federal Loan Alternatives and Disclosure Regarding Benefits
Next Steps1. Find out about other options.The Federal Direct Consolidation Loan may have student loan benefits and terms not detailed on this form. Visit the Department of Education’s website at www.StudentLoans.gov for more information about other consolidation loans. 2. To apply for this loan, complete the application. If you are approved for this loan, the loan terms will be available for 30 days (terms will not change during this period, except as permitted by law). Reference NotesDisclosure Regarding Federal LoansSee your loan agreement for important disclosures about the consequences of refinancing federal student loans with Education Loan Finance.Interest Rate
Repayment OptionsEducation Loan Finance does not have a grace period. Monthly payments of principal and interest begin the month after the loan proceeds are disbursed unless we grant you a deferment and align your repayment begin date to the expiration of the grace period on the federal student loans that you are refinancing with us. You understand that interest will continue to accrue during this deferment period and that accrued interest will be capitalized at the end of this deferment period.Electronic Payment RequirementThis loan requires an electronic payment.Borrower Eligibility Criteria
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Fixed APR from 5.49- 9.75% | Loan amount $5k- $250K | Terms and Conditions ApplyRates displayed are reserved for the most creditworthy consumers who enroll to make automatic monthly payments. Your initial rate will be determined after a review of your application and credit profile, and it may be based on your credit score, level of degree earned, and the availability and credit score of a cosigner applicant. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Variable rates may increase after consummation. Refinancing via LendKey.com is only available for applicants with qualified private education loans from an eligible institution. Loans that were used for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not eligible for refinancing with a lender via LendKey.com. If you currently have any of these exam preparation loans, you should not include them in an application to refinance your student loans on this website. Applicants must be either U.S. citizens or Permanent Residents in an eligible state to qualify for a loan. Certain membership requirements (including the opening of a share account and any applicable association fees in connection with membership) may apply in the event that an applicant wishes to accept a loan offer from a credit union lender. If you are not a member of the credit union lender, you may apply and become a member during the loan application process if your meet the lender's eligibility criteria. Lenders participating on LendKey.com reserve the right to modify or discontinue the products, terms, and benefits offered on this website at any time without notice. LendKey Technologies, Inc. is not affiliated with, nor does it endorse, any educational institution. AutoPay Discount & Lowest Interest RateSubject to floor rate and may require the automatic payments be made from a checking or savings account with the lender. The rate reduction will be removed and the rate will be increased by 0.25% upon any cancellation or failed collection attempt of the automatic payment and will be suspended during any period of deferment or forbearance. As a result, during the forbearance or suspension period, and/or if the automatic payment is canceled, any increase will take the form of higher payments. The lowest advertised APR is only available for loan terms of 5 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors. As of 04/07/2024 student loan refinancing rates range from 5.49% to 9.45% Fixed APR with AutoPay. | |
Fixed APR from 5.85- 9.90% | Loan amount $5k- $250K | INvestEd Refinance Loan Disclosures
Subject to credit approval, loans are made by INvestEd or Bank of Lake Mills. Bank of Lake Mills does not have an ownership interest in INvestEd. Bank of Lake Mills is Member FDIC.
1These rates are expressed as APR.
Rates shown are for eligible, creditworthy applicants and requires shortest length of repayment and our Automatic Payment discount of 0.25 percentage points. Automatic payments are not required. Annual percentage rates (APR) listed are based on borrowing $10,000 in a single disbursement.
The Fixed rate will not change during the term.
The variable rate is subject to increase after consummation. The maximum variable interest rate is 18.00%. The variable interest rate that is charged to the borrower is reset quarterly, may increase or decrease, and is based on an Index and Margin. That means that your rate could move lower or higher than the rates on this form. The variable rate is based upon the average of the three-month forward term version of the 90-day Secured Overnight Financing Rate (SOFR) published by a source approved by the Alternative Reference Rate Committee (ARRC). | |
Fixed APR from 6.00- 10.12% | Loan amount $7.5k- $200K | EdvestinU Refinance Loan
APR or "annual percentage rate" is a calculation of what the loan will cost, taking into consideration interest, fees and length of loan. Accordingly, the APR is subject to increase or decrease due to factors such as changes in the interest rate of variable rate loans, changes in principal due to the capitalization of interest or presence of a cosigner.
Variable APR rates may increase or decrease depending on fluctuations in the 30-day Average SOFR index. Monthly interest rate accrual is based on the published 30-day Average SOFR Index as of the second to last business day of the previous month plus your applicable margin. If the 30-day Average SOFR Index is negative, it will be deemed to be equal to zero.
Lowest rate requires application with a cosigner and 0.25 percentage point interest rate reduction for automatic debit. Once the repayment period commences, the borrower may enroll in automatic debit. The interest rate reduction for authorizing our servicer to automatically debit monthly payments from a savings or checking account will not reduce the monthly payment, but will reduce the monthly finance charge, resulting in a lower total cost of loan. APR’s provided include a 0.25 percent interest rate reduction for authorizing our loan servicer to automatically debit your payments each month from your bank account.
Loans are funded by Granite Edvance Corporation NMLS ID# 1527348 www.nmlsconsumeraccess.org. Granite Edvance and EdvestinU® are brand names of Granite Edvance Corporation.
Granite Edvance In-School Loan Products
Granite Edvance and EdvestinU student loan products are offered and originated by Granite Edvance Corporation. NMLS ID#1527348
The Granite Edvance Student Loan requires the borrower to be a resident of NH or a resident of an eligible state attending college in New Hampshire.
APR or "annual percentage rate" is a calculation of what the loan will cost, taking into consideration interest, fees and length of loan. Accordingly, the APR is subject to increase or decrease due to factors such as changes in the interest rate of variable rate loans, changes in principle due to the capitalization of interest or presence of a cosigner.
Variable APR rates may increase or decrease depending on fluctuations in the 30-day Average SOFR index. Monthly interest rate accrual is based on the published 30-day Average SOFR Index as of the second to last business day of the previous month plus your applicable margin. If the 30-day Average SOFR Index is negative, it will be deemed to be equal to zero.
Lowest rate requires application with a cosigner and 0.25 percentage point interest rate reduction for automatic debit. Private Loans that are in a deferment (including borrowers who elect deferred repayment), grace period, or forbearance are not eligible to enroll and receive the automatic debit benefit until they enter into repayment. Once the repayment period commences, the borrower may enroll in automatic debit. Borrowers electing to enroll in interest-only or immediate repayment are eligible to enroll in automatic debit once the initial disbursement on the loan has been made. The interest rate reduction for authorizing our servicer to automatically debit monthly payments from a savings or checking account will not reduce the monthly payment, but will reduce the monthly finance charge, resulting in a lower total cost of loan.
APR’s provided include a 0.25 percent interest rate reduction for authorizing our loan servicer to automatically debit your payments each month from your bank account.
Loans are funded by Granite Edvance Corporation NMLS ID# 1527348 www.nmlsconsumeraccess.org. Granite Edvance and EdvestinU® are brand names of Granite Edvance Corporation. | |
Fixed APR from 6.20- 8.99% | Loan amount $10k- No Max | The Annual Percentage Rate (APR) is designed to help consumers understand the relative cost of a loan and reflects the loan's interest rate, timing of payments, and fees. MEFA's lowest rates are only available to the most creditworthy applicants. The interest rate and monthly payment on a MEFA variable rate Education Refinancing Loan may increase or decrease as its index, the 1-Month London Interbank Offered Rate (LIBOR) or its replacement index or reference rate, fluctuates. | |
Fixed APR from 6.34- 8.54% | Loan amount $7.5k- $250K | THE ANNUAL PERCENTAGE RATE (APR) IMMEDIATE REPAY: Reflects the estimated total cost of the loan, including upfront fees ($0), accruing interest, and the effect of capitalized interest ($0). Interest begins accruing after each loan disbursement. Rates shown include the 0.25% interest rate reduction for using the auto-pay feature. If the monthly payment is calculated to be less than $50 per month for the full term, the lowest payment is $50 per month with the term reduced. Not all borrowers qualify for the lowest rate. The rate you will receive (ranging from 6.34% – 8.24% APR with auto-pay) is based on the term of the loan, if the loan is cosigned (which lowers your rate), if you are a Rhode Island resident (which lowers your rate), your credit score & financial history, your cosigner's credit score (if applicable), and other factors. The rate shown is for a 5-year term. The first payment will be due approximately 30 days after the loan is completely disbursed. The rates and terms disclosed above are available while funds last. New funds may be subject to different rates and/or terms. | |
Fixed APR from 6.49- 10.98% | Loan amount $10k- $750K | ELIGIBILITY DISCLOSURES Student Lending Eligibility Criteria: Applicants must be a U.S. citizen, permanent resident, or eligible non-citizen with a creditworthy U.S. citizen or permanent resident co-signer. For applicants who have not attained the age of majority in their state of residence, a co-signer is required. Citizens reserves the right to modify eligibility criteria at any time. Citizens private student loans are subject to credit qualification, completion of a loan application/Promissory Note, verification of application information, and if applicable, self-certification form, school certification of the loan amount, and student’s enrollment at a Citizens participating school. Education Refinance Loan Eligibility: Applicants must have attained a bachelor’s degree or higher to refinance their loan. Education Refinance Loan for Medical Residency Eligibility: Applicants must have graduated from medical school and be matched to a MD, DO, DDS, DMD, DPM, DVM, VMD, PharmD, OD residency or fellowship program at the time of application. Education Refinance Loan for Parents Eligibility: The primary applicant must be the primary borrower or co-signer on the loan to be refinanced. Student Loan Eligibility: Applicants must be enrolled at least half-time in a degree-granting program at an eligible institution. Student Loan for Parents Eligibility: The student whose education expenses will be paid for with the loan proceeds must be a U.S. citizen or permanent resident and must be enrolled at least half-time in a degree granting program at a Citizens-participating school. RATE DISCLOSURES Variable Rate Disclosure: Variable interest rates are based on the 30-day average Secured Overnight Financing Rate (“SOFR”) index, as published by the Federal Reserve Bank of New York. As of Apr 01, 2024, the 30-day average SOFR index is 5.32%. Variable interest rates will fluctuate over the term of the loan with changes in the SOFR index, and will vary based on applicable terms, level of degree and presence of a co-signer. The maximum variable interest rate is the greater of 21.00% or the prime rate plus 9.00%. Fixed Rate Disclosure: Fixed rate ranges are based on applicable terms, level of degree, and presence of a co-signer. Lowest Rate Disclosure: Lowest rates are only available for the most creditworthy applicants, require a 5-year repayment term, interest-only repayment, and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Rates are subject to additional terms and conditions, and are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Education Refinance Loan Rate Disclosure: Variable interest rates range from 7.02% - 12.41% (7.03% - 12.42% APR). Fixed interest rates range from 6.49% - 10.98% (6.49% - 10.99% APR). Medical Residency Refinance Loan Rate Disclosure: Variable interest rates range from 7.02% - 11.52% (7.03% - 11.53% APR). Fixed interest rates range from 6.49% - 10.09% (6.49%- 10.10% APR). Education Refinance Loan for Parents Rate Disclosure: Variable interest rates range from 7.81% - 11.52% (7.82% - 11.53% APR). Fixed interest rates range from 7.28% - 10.09% (7.29% - 10.10% APR). Student Loan Rate Disclosure: Variable interest rates range from 6.97% - 15.68% (6.97% - 15.03% APR). Fixed interest rates range from 5.99% - 15.00% (5.99% - 14.00% APR). Undergraduate Loan Rate Disclosure: Variable interest rates range from 6.97% - 15.68% (6.97% - 15.03% APR). Fixed interest rates range from 5.99% - 15.00% (5.99% - 14.00% APR). Graduate Loan Rate Disclosure: Variable interest rates range from 6.97% - 14.64% (6.97% - 14.18% APR). Fixed interest rates range from 5.99% - 13.04% (5.99% - 12.64% APR). Business/Law Loan Rate Disclosure: Variable interest rates range from 6.97% - 12.47% (6.97% - 12.15% APR). Fixed interest rates range from 5.99% - 12.80% (5.99% - 12.46% APR). Medical/Dental Loan Rate Disclosure: Variable interest rates range from 6.97% - 12.08% (6.97% - 11.75% APR). Fixed interest rates range from 5.99% - 11.30% (5.99% - 10.62% APR). Parent Loan Rate Disclosure: Variable interest rates range from 9.03% - 9.53% (9.03% - 9.54% APR). Fixed interest rates range from 9.05% - 9.55% (9.05% - 9.56% APR). STUDENT LENDING PROGRAM DISCLOSURES Wireless Charges: Wireless carrier, text, and/or data charges may apply. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their 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 the 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, or other student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DC, DE, FL, MA, MD, MI, NH, NJ, NY, OH, PA, RI, VA, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. 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. Investors Bancorp, Inc. Loyalty Discount: To receive the Loyalty Discount for having a qualifying account with Investors Bancorp, Inc., borrowers must contact Citizens by telephone prior to signing the promissory note. Student loan borrowers please call (877) 291-6385 and education refinance borrowers please call (888) 411-2413. Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount. Get My Rate: Selecting “Get My Rate” only requires a “soft credit pull“ which does not affect your credit score. Submitting a full application will result in an inquiry on your credit report. Multi-Year Approval: Funds available for future use are subject to a soft credit inquiry at time of your next request to verify continued eligibility. After we make the initial Loan to you, we may refuse to allow you to take out additional loans under the Multi-Year Approval feature, terms and conditions will be outlined in your promissory note. Co-signer Release: Borrowers may apply for co-signer release after making 36 consecutive on-time payments of principal and interest. For the purpose of the application for co-signer release, on-time payments are defined as payments received within 15 days of the due date. Interest only payments do not qualify. The borrower must meet certain credit and eligibility guidelines when applying for the co-signer release. Borrowers must complete an application for release and provide income verification documents as part of the review. Borrowers who use deferment or forbearance will need to make 36 consecutive on-time payments after reentering repayment to qualify for release. The borrower applying for co-signer release must be a U.S. citizen or permanent resident. If an application for co-signer release is denied, the borrower may not reapply for co-signer release until at least one year from the date the application for co-signer release was received. Terms and conditions apply. Borrowers whose loans were funded prior to reaching the age of majority may not be eligible for co-signer release. Note: co-signer release is not available on the Student Loan for Parents or Education Refinance Loan for Parents. Student Loan Aggregate Limits: You may borrow up to the maximum qualified loan amount or the total cost of education, whichever is lower. Our student loan does have lifetime aggregate limits (including both federal and private loan debt) of: Undergraduate Degree: $150,000, Graduate Degrees: $150,000, MBA and Law: $225,000, Healthcare: $180,000 or $350,000 depending on your degree (Aggregate limits up to $350,000 for MD, DMD/DDS, OD, DO, DPM, PharmD, and DVM degrees. Aggregate limits up to $180,000 for cardiac perfusion, chiropractic, cytotechnology, nurse practitioner, occupational therapy, physical therapy, and physician assistant degree). Employer & Organizational Partnerships: To qualify for the principal balance reduction, the borrower or co-signer (if applicable) must have applied, be approved, and disburse a Citizens Education Refinance Loan, Education Refinance Loan for Parents, or a Medical Residency Refinance Loan through the employer’s dedicated Citizens website. The principal balance reduction will be calculated as 1% of the amount financed with a maximum of $1,000. The loan must be in good standing at the time the Principal Balance Reduction Benefit is applied. Only one Principal Balance Reduction Benefit is allowed per borrower. If you receive a Principal Balance Reduction Benefit on a Citizens Student Loan or Student Loan for Parents you will not be eligible for another Principal Balance Reduction Benefit on a Citizens Education Refinance Loan, Education Refinance Loan for Parents or a Medical Residency Refinance Loan. Principal balance reduction will be applied with an effective date equal to the loan’s first disbursement date. Principal balance reduction may take up to the second month following the loan’s final disbursement date to be applied and may be reduced if the loan amount is reduced or cancelled. The Principal Balance Reduction Benefit will be processed as a reduction of the loan’s principal balance and will not impact the required monthly payment. The borrower is solely responsible for any taxes that may be owed as a result of the principal balance reduction earned. A tax advisor should be consulted. Citizens Bank, N.A. does not provide tax advice. Offer cannot be combined with other promotions, discounts or offers – automatic payment and loyalty discounts excluded. Citizens reserves the right to modify these terms or cancel this offer at any point in the future for new applications. Federal Loan vs. Private Loan Benefits: Some federal student loans include unique benefits that the borrower may not receive with a private student loan, some of which we do not offer. Borrowers should carefully review federal benefits, especially if they work in public service, are in the military, are considering possible loan forgiveness options, are currently on or considering income based repayment options or are concerned about a steady source of future income and would want to lower their payments at some time in the future. When the borrower refinances, they waive any current and potential future benefits of their federal loans. For more information about federal student loan benefits and federal loan consolidation, visit https://studentaid.gov/. We also have several resources available to help the borrower make a decision on our website including Should I Refinance My Student Loans? and our FAQs. Should I Refinance My Student Loans? includes a comparison of federal and private student loan benefits that we encourage the borrower to review. U.S. Dept. of Education Fee: The Federal Direct PLUS Loan fee is a percentage of the loan amount and is proportionately deducted from each loan disbursement. For Loans first disbursed between October 1, 2020 and October 1, 2024 the origination fee is 4.228%. Student Loan Repayment: Student borrowers can make full payments or pay interest only while in school or defer payments until after graduation (interest continues to accrue during deferment periods). Medical Residency Refinance Loan Repayment Example with $100 Monthly Payment: Based on a 48 month residency, a fixed rate 5 year loan for $10,000 at 5.00% APR results in 54 monthly payments of $100 (includes residency period and 6-month grace period), followed by 60 monthly payments of $123.61. $100 monthly payment begins immediately after loan disbursement for the duration of the residency or fellow program period up to 48 months, plus 6 month grace period. Citizens Scholarship: No purchase necessary. Void where prohibited. The Citizens Scholarship Sweepstakes is open to legal residents of the 50 United States, D.C., and U.S. Territories, who are 16 years of age or older, are students or prospective students, or parents/guardians of students intending to enroll or enrolled at least half-time in an accredited undergraduate/graduate post-secondary institution. To be eligible for a chance to win the Citizens Diversity, Equity & Inclusion Scholarship, entrants must also be an: American Indian or Alaskan Native, African American or Black, Hispanic or Latino/a, Asian, Native Hawaiian, or other Pacific Islander, women, member of the LGBTQ+ community, individual with disabilities, and/or a Veteran. Sweepstakes begins at 12:00 AM ET on 7/1/23 and ends at 11:59 p.m. ET on 6/30/24. Sponsored by Citizens. See Official Rules for details. Citizens Student Credit Builder™: Citizens Student Credit Builder™ refers to loans with either an Immediate or Interest Only repayment option chosen at the time the loan is originated. Credit scores are based on established borrower payment behaviors. By choosing a loan repayment option that requires payment while the student is in school, the borrower begins their history of payments earlier than a corresponding borrower that chooses a deferred repayment option. Additionally, an equally qualified borrower and/or cosigner with similar loan terms will receive a lower interest rate with an Immediate or Interest Only repayment option. SAVINGS DISCLOSURES Education Refinance Loan Average Monthly Payment Savings: The average monthly and annual payment savings estimated amount is based on 4,611 Citizens Education Refinance Loan customers who refinanced their loans between September 1, 2022 and September 1, 2023 and who received a lower payment. The calculation is derived by averaging the monthly payments prior to refinancing minus the monthly payments after refinancing. Excluded are monthly savings reported from customers that exceeded $9,375 or were lower than $20 to minimize risk of data error skewing the savings amounts. Savings vary based on interest rates, balances and remaining repayment term of loans to be refinanced. Your overall repayment amount may be higher than the loans you are refinancing even if your monthly payments are lower. Education Refinance Loan Weighted Average Interest Rate Savings: Weighted average interest rate savings is based on 5,017 Citizens Education Refinance Loan customers who lowered their interest rate on loans between September 1, 2022 and September 1, 2023. The calculation is derived by averaging the rate savings across Citizens Education Refinance Loan customers whose interest rates decreased after refinancing, calculated by taking the weighted average interest rate prior to refinancing minus the interest rate after refinancing. We excluded rate savings from customers that exceeded 14.21% and were lower than 0.25% to minimize risk of data error skewing the rate savings amounts. Your interest rate savings might vary based on the interest rates you qualify for, chosen terms and previous interest rate of the loans you are seeking to refinance. Your overall interest rate may be higher than the interest rate on the loans you are refinancing even if your monthly payments are lower. Education Refinance Loan for Parents and Federal Loan Savings Comparison: Interest rate savings are calculated as the difference between the Citizens Education Refinance Loan for Parents’ lowest offered fixed rate of 7.29% (7.29% APR) and the Federal Parent PLUS Loan interest rate of 8.05% for loans first disbursed between July 1, 2023 and June 30, 2024. The Citizens Education Refinance Loan for Parents lowest rate includes the available Citizens loyalty and automatic payment discounts for eligible and creditworthy applicants. Parent Loan Savings: Origination fee savings of $737 are calculated using the Federal Direct Plus Loan origination fee of 4.228% (for loans first disbursed between 10/1/22 and 9/30/23) and an average amount financed of $17,429 as compared to the Citizens Student Loan for Parents, which has no origination fees. Graduate Loan Savings: Origination fee savings of $806 are calculated using the Federal Direct Plus Loan origination fee of 4.228% (for loans first disbursed between 10/1/22 and 9/30/23) and an average amount financed of $19,067 as compared to the Citizens Student Loan, which has no origination fees. APPLICATION & SOLICITATION DISCLOSURES The site for Application Solicitation Disclosures is under construction. For more information, please call the Customer Service Team at (877) 464-6329 and copies of the disclosures will be provided via email. Our hours are Monday through Friday, 8:00am - 9:00pm EST. Closed Saturday and Sunday. | |
Lender conversion and compensation impacts how, where and in what order products appear in the above table |
The Biden-Harris administration’s plan for broad student loan forgiveness of up to $20,000 per borrower is no longer in motion, but other efforts for student debt relief remain active. This includes repairs to the previously-flawed PSLF and Income-Driven Repayment (IDR) programs.
If you have been on an IDR repayment plan, check with your loan servicer. You may see an adjustment post to your account correcting the number of months you’ve paid toward forgiveness on your remaining loan balance.
As borrowers go back into repayment this fall, they will want to keep an eye on the Biden administration’s commitment to finding other strategies for student debt cancellation. Though student loan cancellation did not work out as a part of the HEROES Act, the president has stated he will pursue efforts for forgiveness through the Higher Education Act next.
When it comes to paying down your debt, being empowered and knowing all of the resources you have at hand is the key to financial health. Federal student loan borrowers have a host of forgiveness programs and alternative repayment options at their disposal.
Keep up with the current student loan trends and stay up-to-date with the latest information so you know what to prepare for in the coming weeks with forgiveness in limbo.