How to Pay for Boston University: Financial Aid and Student Loan Options

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Boston University is a private college in the Massachusetts city of the same name. Like many other private colleges, it’s a pricey option to earn an undergraduate degree — annual tuition and fees alone are $53,948 a year.

But students shouldn’t automatically assume they can’t afford to attend Boston University. While the tuition costs might initially give them sticker shock, it’s not what most students pay. In fact, the school reports that over 90% of Boston University (BU) freshmen with family incomes of $100,000 or less receive gift aid, or free money that they can use for college costs without having to repay it.

If you understand the student aid you could get and the options you have to finance your education, you can decide if attending Boston University is affordable for you. Here’s what you need to about how to pay for Boston University.

Costs of attending Boston University
Annual tuition and fees $53,948
Annual room and board $15,720
Total cost $69,668
Net cost (after aid) $34,910
Median federal student debt after graduation $27,000
All info current as of Sept. 4, 2018. Sources: Boston University and College Scorecard

Unlock Boston University financing options with the FAFSA

The Free Application for Federal Student Aid (FAFSA) is your key to unlock several forms of student aid. The information you provide on your FAFSA is used to evaluate how much student aid you need and for what you qualify. This is determined by the gap between what you can afford to pay, called your Expected Family Contribution (EFC), and what you’d pay to attend Boston University.

Most significantly, you’ll need to submit a FAFSA for each academic year to be eligible for federal student aid such as grants, work-study, and federal student loans. Your FAFSA information is also used to evaluate you for many other student aid programs, such as those offered by your state or college.

Submitting the CSS Profile

Besides submitting a FAFSA, Boston University students and applicants should also complete the CSS Profile. The CSS Profile is a separate student aid application administered by The College Board that asks for more in-depth information about your financial situation and need for aid.

Many private colleges, including Boston University, require incoming students to complete the CSS Profile to be considered for grants and scholarships funded by the school. The CSS Profile does come with a $25 fee, plus $16 for each additional school or scholarship program to which you submit the application. Note, however, that many low-income or first-year undergraduate students can have these fees waived.

Important aid application dates for Boston University

Submitting your FAFSA and CSS Profile early can increase your chances of qualifying for student aid that draws on limited funds. Here are some key dates to keep in mind as you file a FAFSA or submit a CSS Profile:

  • Oct. 1: Both FAFSA and CSS Profile submissions open for the following school year
  • Nov. 1: Deadline to complete the FAFSA and CSS Profile for the first round of early decision applicants
  • Jan. 2: Deadline to complete the FAFSA and CSS Profile for the second round of early decision applicants; deadline for fall freshmen to file a FAFSA and CSS Profile
  • March 1: Deadline for returning students to file a FAFSA
  • May 1: Deadline to submit a FAFSA to qualify for Massachusetts student aid

You’ll need to complete and submit your aid applications by or on these deadlines. But don’t put it off until the last minute. Submitting these forms early allows plenty of time for your application to process and could help you qualify for more aid.

Grants for Boston University students

Once you’ve applied for student aid, you can start exploring your options and start putting together your plan to pay for Boston University. The best types of help come in the form of gift aid, such as grants that don’t need to be repaid.

Grants are most often based on a student’s financial needs, so those with less ability to cover college costs out of pocket will often qualify for more grants. Keep in mind, too, that financial need also takes a college’s costs into account. So at private colleges such as Boston University that have higher annual costs, students are more likely to qualify for need-based aid than they would at a less-expensive public college.

Common types of grants for students include federal college grants, state college grants, and institutional college grants. The Boston University Grant, for example, is awarded to students who meet the eligibility criteria for both financial need and academic performance.

Understanding the difference between these grants can make the difference in being able to find, apply for, and receive more of this free money for college.

Federal college grants

Some grants are funded and offered through the federal government — specifically, Federal Student Aid. Complete and submit your FAFSA and you’ll automatically be evaluated for and receive any federal grants for which you’re eligible.

  • The Federal Pell Grant awards up to the $6,095 maximum for the 2018-19 academic year, based on a student’s financial need.
  • The Federal Supplemental Educational Opportunity Grant is reserved for students with the highest financial need. It’s administered and partially funded by Boston University.

Massachusetts and state college grants

Many state governments also have their own grant programs to help resident students pay for college. In fact, $1.8 million in state college grant aid was awarded to Boston University students in 2016, reports The Boston Globe.

Here’s an overview of Massachusetts state grants:

  • The Massachusetts Gilbert Matching Student Grant Program is offered to residents of Massachusetts who meet the program’s criteria, including demonstrating financial need. Awards range from $200 to $2,500 a year.
  • Massachusetts Part-Time Grants start at $200 a year and are extended to students enrolled part time who are taking at least six — but fewer than 12 — credits per term.
  • Foster Child Grants provide up to $6,000 per academic year to resident foster children (younger than 25) attending eligible in- or out-of-state colleges.
  • MassGrants are for Massachusetts residents attending eligible schools. Award amounts will vary based on the student’s EFC, which must be $5,486 or less to qualify.
  • Public Service Grants cover full annual tuition and fees for college students whose parent or spouse was “killed or missing in the line of public service duty in the Commonwealth of Massachusetts,” according to the Office of Student Financial Assistance.
  • Paraprofessional Teacher Preparation Grants provide funds for current paraprofessionals working in Massachusetts public schools to complete a teaching degree and certification. Qualifying paraprofessionals can get $625 per credit in grants, or up to $7,500 an academic year.

All the above grants require students be residents of Massachusetts and submit a FAFSA by May 1 to be eligible to receive this aid for the following academic year.

Nonresident Boston University students should check out the state college grants offered in their home state. They might find a program that they could use to attend an out-of-state college.

Scholarships for Boston University students

Besides grants, scholarships provide free funding to help students cover their college costs and educational expenses. Most Boston University scholarships fall into two categories:

  • Merit-based scholarships are awarded based on a student’s academic or athletic merits, area of study, or other qualifying factors.
  • Need-based scholarships are granted primarily by financial need, though they can have more eligibility criteria.

Scholarship programs also differ in how they’re structured and funded. This type of aid is awarded by states, colleges, private companies, nonprofits, and many other types of organizations. Boston University has several award programs of its own, and Massachusetts offers scholarships, too.

Each scholarship has its own application process, which can vary in its requirements and process.

Here are a few top scholarships available to Boston University students:

  • The Trustee Scholarship is awarded by Boston University’s Trustee Scholars Program, which invites about 20 high school seniors to join the organization the following year. Being a trustee comes with a scholarship award that covers full undergraduate tuition and fees. Applicants must complete personal essays and submit them by Dec. 1 to be considered.
  • The Presidential Scholarship awards $20,000 to about 5% of freshmen for academic achievement. Incoming students are automatically considered for this scholarship, which can be renewed for up to four years.
  • The Thomas M. Menino Scholarship is a full-tuition scholarship. High school seniors at Boston Public Schools can be nominated by their principal or counselor, and will then complete an application process to be considered.
  • The BU Community Service Award is open to Boston public high school graduates who are incoming freshmen or transfer students. Recipients must have demonstrated financial need, with award amounts intended to cover the full cost of attendance without loans. Students must commit to performing 25 hours of community service per semester after their first is complete.
  • The Richard D. Cohen Scholarship is extended to select students with exceptional financial need and will provide enough funding to cover the student’s full costs.

On top of offering these programs, Boston University also has the BU Scholarship Assurance. This policy guarantees that aid offered to students in their first year will be renewed each year (as the undergraduate student meets ongoing criteria).

You can also find other national or local student aid programs through scholarship search sites.

Federal work-study at Boston University

Boston University participates in the federal work-study program, which helps students access employment and earn income they can use to cover college costs. If you’re interested in federal work-study, indicate that when completing and submitting your FAFSA.

If you qualify for this form of need-based aid, you’ll be offered a work-study award for each semester. You’ll need to accept it and apply for a job through Boston University’s job directory. Work-study positions at BU start at $11 to $11.25 an hour. Keep in mind that the number of hours you can work through a work-study position will be limited to keep your total semester pay under your award amount.

Federal student loans

Once you’ve maximized all forms of gift student aid that won’t have to be repaid, you might still have some costs left to cover.

Federal student loans can be an accessible and affordable way to help you pay for Boston University. You won’t need a credit history to get federal student loans, and they have low interest rates and fees. Federal student loans also have several ways to manage your debt in repayment, from income-driven repayment plans to deferment or forbearance.

The Direct Subsidized Loan even includes a subsidy that pays interest for you while loans are deferred, such as while you’re in school. If you qualify for a subsidized loan, borrow with this loan type first.

It’s important to compare federal student loans and choose the best option. Some federal student loans are more expensive than others, and one option is only available to parents of undergraduates.

Here’s an overview of federal student loans:

Federal student loan Who can use it? Interest rate (2018-19) One-time loan fee* Interest is paid in deferment
Subsidized Undergraduate students with a demonstrated financial need 5.05% 1.062% Yes
Unsubsidized Undergraduate students 5.05% 1.062% No
PLUS Graduate students and parents of undergraduate students 7.60% 4.248% No

Boston University student loans

Beyond federal student loans, Boston University student have more limited options. The university itself doesn’t provide any student loans.

At a state level, students have another option: the Massachusetts No Interest Loan program. This provides student loans to Massachusetts resident students who meet need-based eligibility criteria. These loans range from $1,000 to $4,000 per academic year and charge no interest for the life of the loan, which borrowers have 10 years to repay.

Boston University also offers several payment plans that can help students and their families break up tuition payments so that they can more effectively budget for these costs. Keep in mind that these payment plans are not loans and won’t incur any interest charges.

Private student loans

Private student loans are another financing option that Boston University students might want to consider. Unlike federal or state student loans, private student loans are offered by banks, credit unions, or online lenders.

These private lenders don’t offer the same benefits you’d receive for federal student loans, such as the option to change your repayment plan or take part in federal student loan forgiveness programs.

Private student loans also require a solid credit history to qualify. Most students can’t get approved on their own and will need to borrow with the help of a student loan cosigner.

Private student loans offer different rates for each borrower, with lower rates correlating to a high credit score. These private student loan rates are often higher than those offered on federal student loans.

Private student loans can help cover gaps in financing if other forms of student aid aren’t enough to cover a student’s full costs. But you’ll need to shop around and compare private student loans to find a private student loan that is affordable and meets your needs.

The bottom line: Paying for Boston University

There’s no denying that Boston University is a high-cost school. Students hoping to attend this college will need to be informed and get creative to make a smart plan to pay for a degree here.

Parents and student should turn to gift aid such as scholarships and grants first when figuring out how to pay for Boston University. Research, find, and apply for as many of these programs as possible to maximize the funds you can get.

After gift aid, consider other ways to cover college costs without borrowing. Students and parents can both look for extra cash to put toward a degree, out of savings or personal earnings.

Then turn to student loans to cover your remaining expenses. Borrow only what you must to cover BU costs, and make sure you’re comparing and choosing the best student loan available to you.

By exploring your college financing options, planning, and taking advantage of all student aid opportunities, you can pay for your Boston University degree while limiting your out-of-pocket costs and student debt.

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Here are our top student loan lenders of 2018!
LenderVariable APREligibility 
1 Important Disclosures for CollegeAve.

CollegeAve Disclosures

College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.

  1. All rates shown include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.
  2. This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7% variable Annual Percentage Rate (“APR”): 96 monthly payments of $179.28 while in the repayment period, for a total amount of payments of $17,211.20. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
  3. As certified by your school and less any other financial aid you might receive. Minimum $1,000. Information advertised as valid as of 07/1/2018. Variable interest rates may increase after consummation.

2 Important Disclosures for Discover.

Discover Disclosures

  1. At least a 3.0 GPA or equivalent qualifies for a one-time cash-reward of 1% of the loan amount of each new Discover student loan. Reward redemption period is limited. Please visit DiscoverStudentLoans.com/Reward for any applicable reward terms and conditions.
  2. View Terms and Conditions at DiscoverStudentLoans.com/AutoDebitReward.

3 Important Disclosures for Ascent.

Ascent Disclosures

Before taking out private student loans, you should explore and compare all financial aid alternatives, including grants, scholarships, and federal student loans and consider your future monthly payments and income. Applying with a cosigner may improve your chance of getting approved and could help you qualify for a lower interest rate. Ascent Student Loans may be funded by Richland State Bank (RSB) or Turnstile Capital Management, LLC (TCM), which are not affiliated entities. Certain restrictions and limitations may apply. Ascent Student Loan products are subject to credit qualification, completion of a loan application, verification of application information and certification of loan amount by a participating school. All loan products may not be available in certain jurisdictions. Other terms and conditions apply. Ascent is a federally registered trademark of TCM and may be used by RSB under limited license. Richland State Bank is a federally registered service mark of Richland State Bank.

  1. Competitive rates calculated monthly at the time of loan approval. (Rates are effective as of 8/01/2018 and include a 0.25% discount applied when a borrower in repayment elects automatic debit payments via their personal checking account.)
    Ascent Tuition: Variable rate loans are based on a margin between 2.00% and 11.00% plus the 1-Month London Interbank Offered Rate (LIBOR), rounded to the nearest 1/100th of a percent. The current LIBOR is 2.069%, which may adjust monthly. Your interest rate may increase or decrease, based on LIBOR monthly changes, resulting in an APR range between 3.82% – 12.82%. Fixed rate loans have an APR range between 5.54% and 14.59%.
    Ascent Independent: Variable rate loans are based on a margin between 4.00% and 12.50% plus the 1-Month London Interbank Offered Rate (LIBOR), rounded to the nearest 1/100th of a percent. The current LIBOR is 2.069%, which may adjust monthly. Your interest rate may increase or decrease, based on LIBOR monthly changes, resulting in an APR range between 5.49% and 12.77%. Fixed rate loans have an APR range between 7.06% and 13.72%.
  2. Payments may be deferred. Subject to lender discretion, forbearance and/or deferment options may be available for borrowers who are encountering financial distress.
  3. Making interest only or partial interest payments while in school will not reduce the principal balance of the loan. There are three (3) flexible in-school repayment options that include fully deferred, interest only and $25 minimum repayment. Click here for a Tuition repayment example.
  4. Flexible repayment plans may be offered with up to a fifteen (15) year repayment term for a variable rate loan and ten (10) year repayment term for a fixed rate loan. Students must be enrolled at least half-time at an eligible school. Minimum loan amount of $2,000. Ascent borrowers who choose a fixed rate option may ONLY select a loan term of five (5) or twelve (12) years (60 or 144 months, respectively). For certain loans with low balances the minimum monthly payment amount may cause the loan amortization schedule to be less than the selected term. Click here for Ascent Tuition cosigned loan current rates and repayment examples.
  5. Interest rate reduction of 0.25% for enrollment in automatic debit applies only when the borrower and/or cosigner signs up for automatic payments and the regularly scheduled, current amount due (including full, flat, or interest only payments, as applicable) is successfully deducted from the designated bank account each month. Interest rate reduction(s) will not apply during periods when no payment is due, including periods of In-School, Deferment, Grace or Forbearance. If you have two (2) returned payments for Nonsufficient Funds, we may cancel your automatic debit enrollment and you will lose the 0.25% interest rate reduction. You will then need to re-qualify and re-enroll in automatic debit payments in order to receive the 0.25% interest rate reduction.
  6. All applicants (individual and cosigner) are required to complete a brief online financial literacy course as part of the application process to be eligible for funding.
  7. Eligibility, loan amount and other loan terms are dependent on a number of factors, including: loan product, other financial aid, creditworthiness, school, program, graduation date, major, cost of attendance and other factors. Aggregate loan limits may apply. The cost of attendance is determined and certified by the educational institution.
  8. The legal age for entering into contracts is eighteen (18) years of age in every state except Alabama where it is nineteen (19) years old, Nebraska where it is nineteen (19) years old (only for wards of the state), and Mississippi and Puerto Rico where it is twenty-one (21) years old.
  9. 1% Cash Back Graduation Reward subject to terms and conditions, click here for details.
  10. Students can apply to release their cosigner and continue with the loan in only their name after making the first 24 consecutive regularly scheduled full principal and interest payments on-time and meeting the other eligibility criteria to qualify for the loan without a cosigner.

* Application times vary depending on the applicants ability to supply the necessary information for submission.


* The Sallie Mae partner referenced is not the creditor for these loans and is compensated by Sallie Mae for the referral of Smart Option Student Loan customers.
4 = Sallie Mae Disclaimer: Click here for important information. Terms, conditions and limitations apply.

5 Important Disclosures for PNC.

PNC Disclosures

  1. Interest will continue to accrue during periods of deferment. You will receive quarterly interest statements during this deferment period. Paying the interest as it accrues each quarter will save you money over the repayment term of the loan because any accrued interest that you do not pay will be added to the principal balance at the end of the deferment period.
  2. If automatic payment is discontinued, you will no longer receive an automatic payment discount. A federal regulation limits the number of transfers that may be made from a savings or money market account. Please contact your financial institution for more information on transfer limitations on savings accounts.
  3. A request to release a co-signer requires that you have made forty-eight (48) consecutive timely payments with no periods of forbearance or deferment within the forty-eight (48) month timeframe. “Timely payment” means each payment is made no later than the 15th day after the scheduled due date of the payment. “Consecutive payment” means the minimum monthly payment must be made for forty-eight (48) months straight without any interruption. To qualify for a co-signer release, the borrower must submit a request, meet the consecutive, timely payment requirements, provide proof of income and pass a credit check.

PNC Bank is one of the nation’s largest education loan providers. For over 40 years, PNC has been committed to helping students and their families make possible the adventure of college.


6 Important Disclosures for SunTrust.

SunTrust Disclosures

Before applying for a private student loan, SunTrust recommends comparing all financial aid alternatives including grants, scholarships, and both federal and private student loans. To view and compare the available features of SunTrust private student loans, visit https://www.suntrust.com/loans/student-loans/private.

Certain restrictions and limitations may apply. SunTrust Bank reserves the right to change or discontinue this loan program without notice. Availability of all loan programs is subject to approval under the SunTrust credit policy and other criteria and may not be available in certain jurisdictions.

SunTrust Bank, Member FDIC. ©2018 SunTrust Banks, Inc. SUNTRUST, the SunTrust logo and Custom Choice Loan are trademarks of SunTrust Banks, Inc. All rights reserved.

  1. Interest rates and APRs (Annual Percentage Rates) depend upon (a) the student’s and cosigner’s (if applicable) credit histories, (b) the repayment option and repayment term selected, (c) the requested loan amount and (4) other information provided on the online loan application. If approved, applicants will be notified of the rate applicable to your loan. Rates and terms effective for applications received on or after 8/01/2018. The current variable APRs for the program range from 3.876% APR to 12.875% APR and the current fixed APRs for the program range from 5.351% APR to 14.051% APR (the low APRs within these ranges assume a 7-year $10,000 loan, with two disbursements and no deferment; the high APRs within these ranges assume a 15-year $10,000 loan with two disbursements). The variable interest rate for each calendar month is calculated by adding the current One-month LIBOR index to your margin. LIBOR stands for London Interbank Offered Rate. The One-month LIBOR is published in the Money Rates section of The Wall Street Journal (Eastern Edition). The One-month LIBOR index is captured on the 25th day of the immediately preceding calendar month (or if the 25th is not a business day, the next business day thereafter), and is rounded up to the nearest 1/8th of one percent. The current One-month LIBOR index is 2.125% on 8/01/2018. The variable interest rate will increase or decrease if the One-month LIBOR index changes. The fixed rate assigned to a loan will never change except as required by law or if you request and qualify for the auto pay discount.
  2. Any applicant who applies for a loan the month of, the month prior to, or the month after the student’s graduation date, as stated on the application or certified by the school, will only be offered the Immediate Repayment option. The student must be enrolled at least half-time to be eligible for the partial interest, fully deferred and interest only repayment options unless the loan is being used for a past due balance and the student is out of school. With the Full Deferment option, payments may be deferred while the student is enrolled at least half-time at an approved school and during the six month grace period after graduation or dropping below half-time status, but the total initial deferment period, including the grace period, may not exceed 66 months from the first disbursement date. The Partial Interest Repayment option (paying $25 per month during in-school deferment) is only available on loans of $5,000 or more. For payment examples, see footnote 7. With the Immediate Repayment option, the first payment of principal and interest will be due approximately 30-60 calendar days after the final disbursement date and the minimum monthly payment is $50.00. There are no prepayment penalties.
  3. The 15-year term and Partial Interest Repayment option (paying $25 per month during in-school deferment) are only available for loan amounts of $5,000 or more. Making interest only or partial interest payments while in school deferment (including the grace period) will not reduce the principal balance of the loan. Payment examples within this footnote assume a 45-month deferment period, a six-month grace period before entering repayment and the Partial Interest Repayment option. 7 year term: $10,000 loan disbursed over two transactions with a 7 year repayment term (84 months) and a 8.468% APR would result in a monthly principal and interest payment of $199.90. 10 year term: $10,000 loan disbursed over two transactions with a 10-year repayment term (120 months) and an 8.938% APR would result in a monthly principal and interest payment of $162.92. 15 year term: $10,000 loan disbursed over two transactions with a 15-year repayment term (180 months) and a 9.423% APR would result in a monthly principal and interest payment of $136.90.
  4. The 2% principal reduction is based on the total dollar amount of all disbursements made, excluding any amounts that are reduced, cancelled, or returned. To receive this principal reduction, it must be requested from the servicer, the student borrower must have earned a bachelor’s degree or higher and proof of such graduation (e.g. copy of diploma, final transcript or letter on school letterhead) must be provided to the servicer. This reward is available once during the life of the loan, regardless of whether the student receives more than one degree.
  5. Earn an interest rate reduction for making automatic payments of principal and interest from a bank account (“auto pay discount”). Earn a 0.25% interest rate reduction when you auto pay from any bank account and an extra 0.25% interest rate reduction when you auto pay from a SunTrust Bank checking, savings, or money market account. The auto pay discount will continue until (1) automatic deduction of payments is stopped (including during any deferment or forbearance) or (2) three automatic deductions are returned for insufficient funds during the life of the loan. The extra 0.25% interest rate reduction when you auto pay from a SunTrust Bank account will be applied after the first automatic payment is successfully deducted and will be removed for the reasons stated above. In the event the auto pay discount is removed, the loan will accrue interest at the rate stated in your Credit Agreement. The auto pay discount is not available when payments are deferred or when the loan is in forbearance, even if payments are being made.
  6. A cosigner may be released from the loan upon request to the servicer provided that the student borrower is a U.S. citizen or permanent resident alien, has met credit criteria and met either one of the following payment conditions: (a) the first 36 consecutive monthly principal and interest payments have been made on-time (received by the servicer within 10 calendar days after their due date) or (b) the loan has not had any late payments and has been prepaid prior to the end of the first 36 months of scheduled principal and interest payments in an amount equal to the first 36 months of scheduled principal and interest payments (based on the monthly payment amount in effect when you make the most recent payment). As an example, if you have made 30 months of consecutive on-time payments, and then, based on the monthly payment amount in effect on the due date of your 31st consecutive monthly payment, you pay a lump sum equal to 6 months of payments, you will have satisfied the payment condition. Cosigner release may not be available if a loan is in forbearance.
  7. If the student dies after any part of the loan has been disbursed, and the loan has not been charged off due to non-payment or bankruptcy, then the outstanding balance will be forgiven if the servicer is informed of the student’s death and receives acceptable proof of death. If the student becomes totally and permanently disabled after any part of the loan has been disbursed and the loan has not been charged off due to non-payment or bankruptcy, the loan will be forgiven upon the servicer’s receipt and approval of a completed discharge application. If the student borrower dies or becomes totally and permanently disabled prior to the full disbursement of the loan, and the loan is forgiven, all future disbursements will be cancelled. Loan forgiveness for student death or disability is available at any point throughout the life of the loan.

7 Important Disclosures for LendKey.

LendKey Disclosures

Additional terms and conditions apply. For more details see LendKey


8 Important Disclosures for CommonBond.

CommonBond Disclosures

A government loan is made according to rules set by the U.S. Department of Education. Government loans have fixed interest rates, meaning that the interest rate on a government loan will never go up or down.

Government loans also permit borrowers in financial trouble to use certain options, such as income-based repayment, which may help some borrowers. Depending on the type of loan that you have, the government may discharge your loan if you die or become permanently disabled.

Depending on what type of government loan that you have, you may be eligible for loan forgiveness in exchange for performing certain types of public service. If you are an active-duty service member and you obtained your government loan before you were called to active duty, you are entitled to interest rate and repayment benefits for your loan.
If you are unable to pay your government loan, the government can refer your loan to a collection agency or sue you for the unpaid amount. In addition, the government has special powers to collect the loan, such as taking your tax refund and applying it to your loan balance.

A private student loan is not a government loan and is not regulated by the Department of Education. A private student loan is instead regulated like other consumer loans under both state and federal law and by the terms of the promissory note with your lender.
If you refinance your government loan, your new lender will use the proceeds of your new loan to pay off your government loan. Private student loan lenders do not have to honor any of the benefits that apply to government loans. Because your government loan will be gone after refinancing, you will lose any benefits that apply to that loan. If you are an active-duty service member, your new loan will not be eligible for service member benefits. Most importantly, once you refinance your government loan, you will not able to reinstate your government loan if you become dissatisfied with the terms of your private student loan.

If your private student loan has a fixed interest rate, then that rate will never go up or down. If your private student loan has a variable interest rate, then that rate will vary depending on an index rate disclosed in your application. If the interest rate on the new private student loan is less than the interest rate on your government loans, your payments will be less if you refinance.
If you are a borrower with a secure job, emergency savings, strong credit and are unlikely to need any of the options available to distressed borrowers of government loans, a refinance of your government loans into a private student loan may be attractive to you. You should consider the costs and benefits of refinancing carefully before you refinance.

If you don’t pay a private student loan as agreed, the lender can refer your loan to a collection agency or sue you for the unpaid amount.

Remember also that like government loans, most private loans cannot be discharged if you file bankruptcy unless you can demonstrate that repayment of the loan would cause you an undue hardship. In most bankruptcy courts, proving undue hardship is very difficult for most borrowers.


9 Important Disclosures for Citizens Bank.

Citizens Bank Disclosures

  1. Student Loan Rate DisclosureVariable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of August 1, 2018, the one-month LIBOR rate is 2.07%. Variable interest rates range from 4.04%-12.01% (4.04%-11.91% APR) and will fluctuate over the term of the loan with changes in the LIBOR rate, and will vary based on applicable terms, level of degree earned and presence of a cosigner. Fixed interest rates range from 5.25%-12.19% (5.25% – 12.09% APR) based on applicable terms, level of degree earned and presence of a cosigner. Lowest rates shown requires application with a cosigner, are for eligible applicants, require a 5-year repayment term, borrower making scheduled payments while in school 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. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change. Please note: Due to federal regulations, Citizens Bank is required to provide every potential borrower with disclosure information before they apply for a private student loan. The borrower will be presented with an Application Disclosure and an Approval Disclosure within the application process before they accept the terms and conditions of the loan.
  2. 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. Please Note: International students are not eligible to receive an offer for multi-year approval. Please Note: International Students are not eligible for the multi-year approval feature.
  3. Loyalty Discount Disclosure: 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, DE, MA, MI, NH, NJ, NY, OH, PA, RI, 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.
  4. Automatic Payment Discount Disclosure: 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.
  5. 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.
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