Citizens Bank changed the interest rates on a number of its student loan products on July 20, 2017.
The changes will impact prospective student loan borrowers looking to take out private student loans for the upcoming academic year of 2017 – 2018.
For undergraduate private student loans, Citizens Bank updated their variable interest rates on both the low and high end. Undergraduate students that borrow from Citizens Bank can expect a variable interest rate ranging from 3.12 percent to 11.22 percent. The previous variable rates on private student loans for undergraduates could have been anywhere from 3.99 percent to 10.99 percent.
Fixed interest rates on undergraduate student loans from Citizens Bank will remain at the same levels from the bank’s previous changes. That range was from 5.74 percent to 11.99 percent.
Variable rates on private student loans for graduate students also saw some modifications. Graduate variable rates will now vary from 3.12 percent to 10.87 percent. Previous offers ranged between 3.99 percent and 10.64 percent. Citizens’ fixed interest rates for graduate students will remain the same, ranging 5.74 to 11.75 percent.
Parents of student loan borrowers that are looking to take out private student loans to fund their child’s education will also see some interest rate changes. The fixed interest rate range for parent student loans will now be from 5.95 percent to 6.55 percent. The previous range varied from 6.64 percent to 7.24 percent.
For business and law school students, they can expect to see changes in variable interest rates on private student loans, but not fixed interest rates. The new range on variable interest rates will be from 3.12 percent on the low end and 9.97 percent on the high end. The previous range was anywhere between 3.74 percent and 9.74 percent.
Medical and dental student loan borrowers will have to deal with modifications to both the variable and fixed interest rates on Citizens Bank’s private student loans. In terms of variable rates, these students will see interest rates from 3.12 percent to 9.47 percent. Past variable rates for medical and dental students varied from 3.74 percent to 9.24 percent. Regarding fixed interest rates for this group, the range will now be from 5.25 percent to 10.49 percent. This marks a slight change on the low end, where the previous low rate was 5.09 percent.
The overall changes made to interest rates on Citizens Bank’s private student loans saw many low-end rates being lowered while the high-end interest rates saw an increase in most categories.
The marketplace rates on private student loans has generally been trending upwards. This is because the U.S. Federal Reserve recently raised the benchmark interest rate, affecting federal student loans and prompting the private market to follow suit. Amongst the lenders that have increased interest rates are Sallie Mae, College Ave, and PNC.
Author: Mike Brown
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