Student Loan Forgiveness and Refinancing
Visit studentaid.gov for the latest announcements and information re: federal student loan debt repayment.
What you need to know
On June 30, 2023, the plan to forgive federal student loans, from the Biden-Harris administration, was rejected by the United States Supreme Court.
Interest on federal student loans began accruing again on September 1, 2023, and federal student loan payments restarted in October 2023.
There are still other types of federal loan forgiveness, but keep in mind that the eligibility requirements can be specific. While not everyone will qualify, it is worth checking to see if you're eligible.
REFINANCING
Steps to take control of federal student loans
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Gather all your federal student loan details so you have an overall view in one place.
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Get your refinanced rate in about 2 minutes
And no, it won't impact your credit score.† Lock that rate in before they rise again.
Articles
These helpful resources are available if you want to learn more about how to take control of your student loan debt.
Financial Moves To Make by Age 35
There's no universal solution to being financially stable, but here are a couple of things you should consider, including refinancing your student loans.
How To Take Control of Your Student Loan Payments
There are options beyond forgiveness and refinancing that could put you back in the driver's seat.
The Benefits of Refinancing
What does refinancing actually do for you? Whether it's paying less each month, or paying off your loans sooner than planned, you can make your loans fit your finances.
When To Consider a Student Loan Refi
Your stage of life might affect your approach to refinancing. Here are some things you should consider before making the jump.
FAQ
What is student loan refinancing?
Student loan refinancing gives you the ability to refinance one or more federal and private student loans into a single loan with new terms, including a new interest rate, monthly payment amount, or repayment length. Even if you have previously consolidated or refinanced your student loans, you may be able to lower your interest rate and/or your monthly payment by refinancing with the Citizens Education Refinance Loan®.
What is student loan consolidation?
For people with multiple student loans, consolidation can help simplify payments by combining these separate loans into one. When you use an Education Refinance Loan, Citizens will combine these separate loans into a new, single loan. This new loan will have new terms, such as a new monthly payment amount, interest rate and repayment length. Student loan consolidation is for people carrying multiple student loans with separate due dates, payment amounts and interest rates. By combining these many loans into one, you can simplify your loan payments and make it easier to fit student loan repayment into your budget.
Federal loan consolidation is common, but only recently have students been able to consolidate their federal and private loans together. If you need to simplify your student loan payment process, the Citizens Education Refinance Loan® gives you the option of consolidating your federal and private loans together and receive a new term, a new repayment length and a new interest rate.† Unlike federal loan consolidation where your new interest rate is based on a weighted average of each loan's rate, Citizens will base your new interest rate on the market and your credit profile.
If you have questions about whether student loan consolidation is right for you, speak with one of our Student Lending Specialists.
Can you consolidate federal and private student loans?
When you apply for an Education Refinance Loan through Citizens, you can include any student loan debt that was taken out in your name and used to finance education (for example: the Citizens Student Loan™ for both undergraduate and graduate students, the Citizens Student Loan™ for Parents, private student loans from other lenders or federal loans like Federal Direct PLUS or Stafford loans could be consolidated together†). You cannot include any other debt (such as credit card or mortgage debt), even if it was used to pay education expenses. Our application process will review the debt you wish to consolidate to ensure it is eligible to be refinanced. You may even be able to refinance student loan debt you previously consolidated into a single loan.
How can I decide if refinancing my student loans is right for me?
There are a lot of potential benefits to refinancing your student loans, like reducing your monthly payment, lowering your interest rate or getting out of debt faster. Check your refi rate to see how much you could save, or give us a call at (888) 333-0128 to discuss your loans and goals and create a plan that’s right for both.
What's the difference between a variable- and fixed-rate loan?
Fixed interest rates stay the same for the length of your loan, so you’ll always have the same monthly payments – but they tend to cost more than variable interest rates.
Variable interest rates go up and down, so your monthly payment will too. That means less predictability, but also potential savings: if it dips lower than a fixed interest rate, you’ll pocket the difference.
How does the student loan refinancing process work?
- Application - Fill out an application for a Citizens Education Refinance Loan which will include personal information as well as details about your existing student loans. Determine if you would like to apply as an individual or with a co-signer.
- Decision - We will validate your (and your co-signer’s, if applicable) credit profile and application to determine eligibility.
- Options - If approved, we will present you with different loan options, including new fixed or variable interest rates, repayment terms and monthly payment amounts.
- Term Selection - You (and your co-signer, if applicable) will be required to sign your application and promissory note.
- Old Loans Paid Off - Before we deliver your refinance loan proceeds to your previous lender(s), we will provide to you a Final Disclosure which will confirm the terms of the loan and provide you a Right to Cancel without penalty for a minimum period of 3 business days, along with instructions on how to do so. Then, we will make payment(s) to your current loan servicer(s) to pay-off your student loans.
- New Loan Begins - Continue to make on-time payments until you receive confirmation that your loans have been paid-in-full. You will begin repaying your Citizens Education Refinance Loan right away.