Bank Introduction
Citizens Disclosures
Loan products, terms, and benefits may be modified or discontinued by participating lenders at any time without notice. Rates 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. Variable rates may increase after consummation. You must be either a U.S. citizen or Permanent Resident in an eligible state and from an eligible school, and meet the lender's credit and income requirements to qualify for a loan. Certain membership requirements (including the opening of a share account, a minimum share account deposit, and the payment of any applicable association fees in connection with membership) may apply in the event that an applicant wishes to apply with, and accept a loan offered 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 you meet the lender's eligibility criteria. Applying with a creditworthy cosigner may result in a better chance of loan approval and/or lower interest rate. Loans for exam preparation classes, including, but not limited to, loans for LSAT, MCAT, GMAT, and GRE preparation, are not available via LendKey.com.
2 – Cosigner Release
Some lenders participating on LendKey.com may offer the benefit of cosigner release. Cosigner release is subject to lender approval. In order to qualify, the borrower, alone, must meet the following requirements: (1) Make the required number of consecutive, on-time full principal and interest payments as indicated in the borrower’s credit agreement during the repayment period (excluding interest-only payments) immediately prior to the request. Any period of forbearance will reset the repayment clock; (2) The account cannot be in delinquent status; (3) The borrower must provide proof of income indicating that he/she meets the income requirements and pass a credit review demonstrating that he/she has a satisfactory credit history and the ability to assume full responsibility of loan repayment; (4) No bankruptcies or foreclosures in the last sixty months; and (5) No loan defaults.
3 – Autopay Rate Reduction
Subject 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.
4 – AutoPay Discount & Lowest Interest Rate
Subject 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 10 years and is reserved for the highest qualified applicants, taking into consideration the applicant’s credit and other factors.
As of 2/7/2023 private student loans rates range from 5.36% to 10.51% Variable APR with AutoPay and 4.89% to 10.39% Fixed APR with AutoPay.
Loan reviews
LendKey’s digital platform connects borrowers who need private student loans or refinancing loans with nonprofit credit unions and banks. Since 2009, LendKey has helped more than 155,000 people by funding $6 billion in loans. You can apply for fixed- or variable-rate loans if you are enrolled at least halftime in a degree-granting program from an approved school. Refinancing is available if you have graduated with at least an associate degree from a Title IV school, and you can refinance even if you are still in school.Pros
- Co-signers are accepted but not required and may improve your chances of approval or help you obtain better terms.
- LendKey charges no origination or application fees.
Cons
- Co-signers are accepted but not required and may improve your chances of approval or help you obtain better terms.
- LendKey charges no origination or application fees.
How to apply for a federal PLUS loan
Difference between Private Student Loan and Federal PLUS Loan
Private student loans and Federal PLUS loans are both options available to students and their families to finance education expenses. However, there are several key differences between these two types of loans. Here are some important distinctions:
1. Source of Funds:
Private Student Loan: Private student loans are offered by private financial institutions such as banks, credit unions, and online lenders. These loans are not funded or guaranteed by the federal government. Federal PLUS Loan: Federal PLUS loans are federal loans available to parents of dependent undergraduate students or to graduate or professional students. They are issued by the U.S. Department of Education.
2. Borrower Eligibility:
Private Student Loan: Private student loans often require a credit check and typically consider the borrower's creditworthiness, income, and debt-to-income ratio. Students may need a co-signer if they have limited credit history or insufficient income. Federal PLUS Loan: Federal PLUS loans do not require a credit check for eligibility. However, borrowers with an adverse credit history may face additional requirements or need an endorser (co-signer) to qualify.
3. Interest Rates:
Private Student Loan: Interest rates for private student loans can vary based on the borrower's creditworthiness and market conditions. Some private lenders may offer both fixed and variable interest rate options. Federal PLUS Loan: Federal PLUS loans have a fixed interest rate set by the federal government for each academic year. The interest rate is generally higher than the rates offered for federal direct student loans.
4. Repayment Options:
Private Student Loan: Private student loans may offer various repayment options, including immediate repayment, interest-only payments, or deferred payments while in school. Repayment terms can vary among lenders. Federal PLUS Loan: Federal PLUS loans typically offer a deferment option while the student is enrolled at least half-time. After graduation or leaving school, borrowers have a six-month grace period before they are required to begin repayment. Federal PLUS loans also provide access to federal loan forgiveness and income-driven repayment plans.
5. Loan Limits:
Private Student Loan: Private student loans often have higher loan limits compared to federal loans. The maximum loan amount varies among lenders and is typically based on the cost of attendance minus other financial aid received. Federal PLUS Loan: The loan limit for Federal PLUS loans is determined by the cost of attendance minus any other financial aid received. The maximum amount is not as high as some private loans but can still cover a significant portion of education expenses.
6. Loan Forgiveness and Discharge:
Private Student Loan: Private student loans generally have fewer options for loan forgiveness or discharge. However, some private lenders may offer loan discharge or forgiveness in specific circumstances, such as death or permanent disability. Federal PLUS Loan: Federal PLUS loans are eligible for certain forgiveness and discharge programs, such as Public Service Loan Forgiveness (PSLF) and Total and Permanent Disability (TPD) discharge. It's important to carefully review the terms, interest rates, repayment options, and benefits offered by both private student loans and Federal PLUS loans. Compare the options available to you based on your specific financial situation, loan needs, and future plans to make an informed decision about which type of loan best suits your needs.
Bank Introduction
Sallie Mae
4.4 
FIXED APR4.50% to 15.49% with autopay
VARIABLE APR6.12% to 16.45% with autopay
MAX. LOAN AMOUNTCost of attendance, minus aid
MIN. CREDIT SCOREMid 600s
Citizens Disclosures
Lowest rates shown include the auto debit discount: Additional information regarding the auto debit discount: Advertised APRs for undergraduate students assume a $10,000 loan to a student who attends school for 4 years and has no prior Sallie Mae-serviced loans. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. *These rates will be effective 06/26/2023.
Terms:
Examples of typical costs for a $10,000 Smart Option Student Loan with the most common fixed rate, fixed repayment option, 6-month separation period, and two disbursements: For a borrower with no prior loans and a 4-year in-school period, it works out to a 10.28% fixed APR, 51 payments of $25.00, 119 payments of $182.67 and one payment of $121.71, for a Total Loan Cost of $23,134.44. For a borrower with $20,000 in prior loans and a 2-year in-school period, it works out to a 10.78% fixed APR, 27 payments of $25.00, 179 payments of $132.53 and one payment of $40.35 for a total loan cost of $24,438.22. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 10 years.
Loan reviews
Sallie Mae is a publicly traded consumer bank that offers private student loans to pay for undergraduate, graduate and professional degrees, among other educational needs. Congress started Sallie Mae in 1972 as a government-sponsored entity that serviced student loans. The lender went private in 2004 and today provides a range of student loan products. Additionally, Sallie Mae Bank offers savings products and other tools to help families plan and pay for college, including a credit card that earns bonus cash back to help you pay off any student loan.Pros
- Student loans can completely cover school-certified expenses, such as tuition and fees, books, and other related costs.
- Borrowers pay no loan origination fee.
- Autopay enrollment qualifies you for a 0.25-percentage-point interest rate discount.
Cons
Difference between Private Student Loan and Federal PLUS Loan
Private student loans and Federal PLUS loans are both options available to students and their families to finance education expenses. However, there are several key differences between these two types of loans. Here are some important distinctions:
1. Source of Funds:
Private Student Loan: Private student loans are offered by private financial institutions such as banks, credit unions, and online lenders. These loans are not funded or guaranteed by the federal government. Federal PLUS Loan: Federal PLUS loans are federal loans available to parents of dependent undergraduate students or to graduate or professional students. They are issued by the U.S. Department of Education.
2. Borrower Eligibility:
Private Student Loan: Private student loans often require a credit check and typically consider the borrower's creditworthiness, income, and debt-to-income ratio. Students may need a co-signer if they have limited credit history or insufficient income. Federal PLUS Loan: Federal PLUS loans do not require a credit check for eligibility. However, borrowers with an adverse credit history may face additional requirements or need an endorser (co-signer) to qualify.
3. Interest Rates:
Private Student Loan: Interest rates for private student loans can vary based on the borrower's creditworthiness and market conditions. Some private lenders may offer both fixed and variable interest rate options. Federal PLUS Loan: Federal PLUS loans have a fixed interest rate set by the federal government for each academic year. The interest rate is generally higher than the rates offered for federal direct student loans.
4. Repayment Options:
Private Student Loan: Private student loans may offer various repayment options, including immediate repayment, interest-only payments, or deferred payments while in school. Repayment terms can vary among lenders. Federal PLUS Loan: Federal PLUS loans typically offer a deferment option while the student is enrolled at least half-time. After graduation or leaving school, borrowers have a six-month grace period before they are required to begin repayment. Federal PLUS loans also provide access to federal loan forgiveness and income-driven repayment plans.
5. Loan Limits:
Private Student Loan: Private student loans often have higher loan limits compared to federal loans. The maximum loan amount varies among lenders and is typically based on the cost of attendance minus other financial aid received. Federal PLUS Loan: The loan limit for Federal PLUS loans is determined by the cost of attendance minus any other financial aid received. The maximum amount is not as high as some private loans but can still cover a significant portion of education expenses.
6. Loan Forgiveness and Discharge:
Private Student Loan: Private student loans generally have fewer options for loan forgiveness or discharge. However, some private lenders may offer loan discharge or forgiveness in specific circumstances, such as death or permanent disability. Federal PLUS Loan: Federal PLUS loans are eligible for certain forgiveness and discharge programs, such as Public Service Loan Forgiveness (PSLF) and Total and Permanent Disability (TPD) discharge. It's important to carefully review the terms, interest rates, repayment options, and benefits offered by both private student loans and Federal PLUS loans. Compare the options available to you based on your specific financial situation, loan needs, and future plans to make an informed decision about which type of loan best suits your needs.