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Many students turn to loans to pay their tuition bills, with annual tuition costs averaging $36,436 in 2023. You can choose between private student loans from a financial institution or a federal student loan from the U.S. Department of Education.
If you’ve reached your federal loan limit, it may be time to consider a private loan from a bank.
4 Banks That Offer Student Loans
Here are our picks for the top banks that offer undergraduate, graduate or professional student loans.
Citizens Bank
Citizens Bank offers private student loans in all 50 states with physical branches across 15 states. Loan options are also available online.
One unique feature of the Citizens Bank student loan program is its multi-year approval option. If you’re eligible, you can submit a single application and qualify for four years of funding. While the bank will confirm your information annually, you won’t have to go through the full application process again.
Loan Details
- Annual percentage rates (APRs). For Citizens Bank undergraduate students, fixed rates range from 4.48% to 13.29% while variable rates range from 6.38% to 14.28%. Citizens Bank graduate fixed rates range from 4.99% to 12.24% and variable rates range from 6.84% to 13.32%.
- Terms. Five-, 10- or 15-year terms are available.
- Loan amounts. Citizens Bank offers loan amounts from $1,000 to $350,000 (depending on degree) or that cover the total cost of education (for undergraduate and graduate loans).
- Co-signer release. Co-signers may be released after 36 consecutive, on-time payments.
- Available discounts. Existing customers and borrowers who sign up for autopay receive a 0.50% rate discount.
- International student loan availability. You can apply for international student loans with a co-signer who’s a U.S. citizen or permanent resident.
SoFi
SoFi® is an online lender that offers a variety of undergraduate, graduate, health profession and parent loans.
While SoFi doesn’t permit co-signer releases, it does offer a number of unique customer benefits, including complimentary career coaching, financial planning, networking events and priority entrance to SoFi stadium.
Loan Details
- APRs. For undergraduate students, fixed rates range from 4.44% to 14.70% while variable rates range from 5.99% to 14.70%. Fixed SoFi® graduate rates range from 4.99% to 14.50%, and variable graduate rates range from 5.99% to 14.50%.
- Terms. Five-, seven-, 10- or 15-year terms are available.
- Loan amounts. You can borrow a minimum of $1,000 up to the total cost of attendance.
- Co-signer release. Co-signer releases are available after 24 months of on-time payments.
- Available discounts. SoFi offers a 0.25% rate discount for autopay; 0.125% if you or your co-signer are existing SoFi members; and 0.125% if you’ve borrowed a loan from SoFi previously.
- International student loan availability. International student loans are available with a U.S. citizen co-signer.
PNC
PNC Bank offers undergraduate, graduate and professional loans with flexible repayment terms. It doesn’t charge any application or origination fees.
PNC offers a 0.50% discount for setting up autopay, which is more than most lenders. You’re also eligible for a semi-annual $2,000 scholarship award.
Loan Details
- APRs. Fixed rates for PNC Bank undergraduate loans range from 6.69% to 13.89% and variable rates range from 8.44% to 15.64%. PNC Bank graduate student loan fixed rates range from 6.69% to 13.89% and variable rates range from 8.44% to 15.64%.
- Terms:Five-, 10- or 15-year terms are available.
- Loan amounts. For undergraduate loans, you can borrow up to $50,000 annually, with an overall maximum limit of $225,000, including other federal or private loans. For graduate student loans, up to $65,000 with an overall maximum limit of $225,000.
- Co-signer release. Co-signer releases are available after 48 consecutive, on-time payments.
- Available discounts. PNC Bank offers a 0.50% discount for autopay.
Sallie Mae
Sallie Mae offers undergraduate, graduate and career training loans. You can also receive medical, dental, health professions, law and bar study loans.
Salle Mae accommodates students with full-time, part-time and less-than-part-time enrollment statuses.
Loan Details
- APRs. For undergraduate students, fixed rates range from 4.50% to 15.49% while variable rates range from 6.37% to 16.70%. Fixed Sallie Mae graduate rates range from 4.99% to 14.48%, and variable graduate rates range from 6.87% to 16.47%.
- Terms. Five-, 10- or 15-year terms are available.
- Loan amounts. You can borrow a minimum of $1,000 up to total cost of attendance.
- Co-signer release. Co-signer releases are available after 12 consecutive, on-time payments.
- Available discounts. Sallie Mae offers a 0.25% rate discount for autopay.
- International student loan availability. International student loans are available with a U.S. citizen co-signer.
Banks vs. Online Lenders
Banks and online lenders have some differences in their student loan options. Both can be beneficial, but it’s vital to understand where they differ before deciding.
Most online lenders offer pre qualification options for borrowers seeking to estimate terms and expenses. This process requires a soft credit inquiry, which has no effect on your score. Banks often require a hard credit pull to qualify, which can negatively impact your score.
Banks also have fewer options for bad credit aside from adding a co-signer. Online lenders typically have separate loan options for borrowers with bad credit scores, offering more flexible terms. However, loans designed for borrowers with bad credit typically come with high interest rates.
Pros and Cons of Borrowing Student Loans From a Bank
Before choosing a bank for your private student loan needs, consider the advantages and disadvantages.
Pros
- High loan amounts. Most banks let you borrow as much as you need to cover your school-certified cost minus any other previous financial aid.
- Rate discounts. You may receive a 0.25% discount or more if you already have an account with the bank or sign up for autopay.
- Flexible repayment options. Many banks let you defer payments while you’re in school and for six months after graduation. You can also receive an interest-only or small monthly payment during school to reduce interest charges.
Cons
- Credit and income requirements. Banks review your credit and income before approving you for a student loan. Most banks require a credit score of at least 670 and a stable source of income to qualify. If you can’t meet the requirements, a co-signer may be a viable option.
- Slow funding time. Traditional banks don’t always offer the streamlined application process that you can find with some online lenders. This may result in slower funding.
- Co-signer releases aren’t always available. Not all banks offer a co-signer release. Even those that do offer them don’t offer any guarantee that your co-signer release will be approved.
How To Apply For A Bank Student Loan
Most banks require you to apply online or in person for a student loan. Follow these general steps to apply:
- Compare rates from multiple banks. While it might be tempting to borrow from your current bank, it’s worth shopping around to find the best offer. Some banks let you prequalify for a loan online and check your rates with no impact to your credit.
- Estimate your costs of borrowing. As you compare loan offers, use a student loan calculator to estimate your monthly payments and long-term interest charges to identify the most affordable loan.
- Submit your full application. Once you’ve selected a loan offer, submit a complete application including personal details, school information and documentation. You’ll also have to provide information on your co-signer if you’re applying with one.
- Sign your final loan agreement. Once the school certification process is complete, you will sign your student loan promissory note, which includes loan details such as the first due date for your payment.
- Wait for loan disbursem*nt. Most banks will send your funds directly to your financial aid office. Any additional funds are sent directly to you.
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Based on the information provided in the article, I can provide information related to the concepts of private student loans, federal student loans, and some specific banks that offer student loans. Here are the key points from the article:
Private Student Loans vs. Federal Student Loans
- Many students turn to loans to pay their tuition bills, with annual tuition costs averaging $36,436 in 2023.
- Students have the option to choose between private student loans from a financial institution or federal student loans from the U.S. Department of Education.
- Private student loans are offered by banks and online lenders, while federal student loans are provided by the government.
- Private student loans may be considered when a student has reached their federal loan limit.
Banks That Offer Student Loans
-
Citizens Bank:
- Offers private student loans in all 50 states with physical branches across 15 states.
- Provides a multi-year approval option, allowing eligible students to submit a single application and qualify for four years of funding.
- Offers fixed and variable interest rates, with terms ranging from five to 15 years.
- Loan amounts range from $1,000 to $350,000 (depending on the degree) or cover the total cost of education.
- Co-signer release is available after 36 consecutive, on-time payments.
- Offers rate discounts for existing customers and borrowers who sign up for autopay.
- International student loans are available with a co-signer who is a U.S. citizen or permanent resident.
-
SoFi:
- An online lender that offers undergraduate, graduate, health profession, and parent loans.
- Provides unique customer benefits such as complimentary career coaching, financial planning, networking events, and priority entrance to SoFi stadium.
- Offers fixed and variable interest rates, with terms ranging from five to 15 years.
- Loan amounts range from a minimum of $1,000 up to the total cost of attendance.
- Co-signer release is available after 24 months of on-time payments.
- Offers rate discounts for autopay, existing SoFi members, and previous borrowers.
- International student loans are available with a U.S. citizen co-signer.
-
PNC Bank:
- Offers undergraduate, graduate, and professional loans with flexible repayment terms.
- Does not charge application or origination fees.
- Provides a 0.50% discount for setting up autopay and offers a semi-annual $2,000 scholarship award.
- Offers fixed and variable interest rates, with terms ranging from five to 15 years.
- Loan amounts for undergraduate loans can go up to $50,000 annually, with an overall maximum limit of $225,000.
- Loan amounts for graduate student loans can go up to $65,000, with the same overall maximum limit.
- Co-signer release is available after 48 consecutive, on-time payments.
-
Sallie Mae:
- Offers undergraduate, graduate, and career training loans, as well as loans for medical, dental, health professions, law, and bar study.
- Accommodates students with full-time, part-time, and less-than-part-time enrollment statuses.
- Offers fixed and variable interest rates, with terms ranging from five to 15 years.
- Loan amounts range from a minimum of $1,000 up to the total cost of attendance.
- Co-signer release is available after 12 consecutive, on-time payments.
- Offers a rate discount for autopay.
- International student loans are available with a U.S. citizen co-signer.
Pros and Cons of Borrowing Student Loans From a Bank
Pros:
- High loan amounts.
- Rate discounts for existing customers and autopay.
- Flexible repayment options.
Cons:
- Credit and income requirements.
- Slow funding time.
- Co-signer releases aren't always available.
How to Apply for a Bank Student Loan
- Compare rates from multiple banks.
- Estimate your costs of borrowing using a student loan calculator.
- Submit your full application, including personal details, school information, and documentation.
- Sign your final loan agreement.
- Wait for loan disbursem*nt.
Please note that the information provided above is based on the article you shared. It's always a good idea to research further and compare different options before making any financial decisions.
