Survey: 60% of LGBTQ Student Borrowers Regret Taking Out Student Loans

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It’s not easy being LGBTQ. Members of the community continue to face varying levels of discrimination. But they also face more common challenges, such as managing student loan debt.

Our latest survey finds that LGBTQ borrowers feel concerned about their education debt. In fact, more than half (60%) regret the decision to take out student loans.

On top of that, LGBTQ youth who’ve been kicked out of their homes by family members face unique challenges. They have to attend school and manage their finances without familial support.

Here’s what we found out about student loan debt and the financial barriers faced by the LGBTQ community.

Key survey findings


  • LGBTQ student borrowers regret their debt. A majority (60%) of LGBTQ student loan borrowers say they regret taking on student loan debt. Only 45% of student loan borrowers in the general population feel this way.
  • More than a quarter of LGBTQ student loan borrowers feel their debt is unmanageable. Twenty-eight percent feel like they can’t manage their student loan payments. Only 26% of LGBTQ borrowers think their student loans are “very manageable.”
  • LGBTQ borrowers are more likely than the general population to make less than $50,000 a year. More than half (53%) of the LGBTQ respondents in our survey report making less than $50,000 a year, exacerbating their difficulties in affording student loan payments. On top of that, you can still be fired for your sexual orientation or gender identity in more than one-half of U.S. states.
  • The LGBTQ community is less prepared for retirement. Only 47% of those in the community have a retirement savings vehicle, compared to 56% of the general population.
  • Less than half of the members of the LGBTQ community feel completely accepted by their families. Only 39% of our respondents say they feel completely accepted by their families. Additionally, 33% report being kicked out of their homes at some point due to their sexual orientation or gender identity.
  • Almost one-third of LGBTQ respondents report being denied financial help. When seeking financial help and services, 32% of LGBTQ respondents say their gender identity or sexual orientation was a factor in being denied services.

More than a quarter of LGBTQ borrowers feel their student debt is unmanageable


On average, LGBTQ respondents have $112,607 in student loan debt, about $16,000 more than the general population average of $96,211.

Taking that into consideration, it’s not surprising that 28% of respondents consider their student loan debt unmanageable. This result is similar to the findings in our women and money survey. It found that 28% of women feel their student loan debt is unmanageable. Only 13% of men feel the same way.

Many LGBTQ respondents cite difficulties finding jobs that allow them to keep up with their student loan payments. Additionally, they report not understanding how much they would have to repay after graduation.

  • “I feel like I’m going to be paying these for the rest of my life,” wrote one respondent.
  • “I can’t find a job in the [subject] area I went to college for and now I’m in severe poverty with bad credit,” wrote another respondent.

Student loan difficulties might be exacerbated by employment issues


A number of respondents feel as though they don’t make enough money to manage student loan payments. Compared with the general population, the average LGBTQ worker makes less money.

Many respondents wrote that when you don’t make as much money, it can be difficult feeling as though you’ll ever come out ahead of your student debt.

LGBTQ workers face employment discrimination

But it’s not just income that makes it difficult for LGBTQ borrowers to make ends meet. In some cases, they also live in fear of losing their jobs.

According to a 2017 fact sheet on workplace equality put out by Out & Equal, a nonprofit organization that advocates for LGBTQ workplace equality, you can be fired for your sexual orientation or gender identity.

fired for lgbtq

Image credit: Out & Equal

According to Out & Equal, 1 in 4 LGBTQ workers have experienced employment discrimination in the past five years, and nearly 1 in 10 have left a job due to an unwelcoming environment.

Things can be even tougher for transgender people, who experience unemployment at a rate that’s three times the national average.

Andi Tremonte is a transgender person and an LGBTQ+ cultural competency trainer at the Utah Domestic Violence Coalition. He pointed out that even in states that have nondiscrimination laws, such as Utah, there are loopholes that worry him.

“Because I rent from a private person, they could decide to kick me out, because there’s an exception in the law,” said Tremonte. “My workplace has few enough employees that my employer is an exception to the law and could decide to fire me for being transgender.”

Tremonte said many other LGBTQ people live with the same fears, contributing to their worries that a slip to the wrong person about orientation or identity could mean a loss of income. That, in turn, could lead to difficulty in making student loan payments and meeting other obligations.

Workplace advancement

Worries over lower income and job loss aren’t the only issues affecting the LGBTQ community. A report from the Center for American Progress, a nonpartisan public policy think tank, indicates that some barriers are much more subtle than outright discrimination.

“I couldn’t be fired for being gay,” said one research participant, who works for a Fortune 500 company with a nondiscrimination policy. “When partners at the firm invite straight men to squash or drinks, they don’t invite the women or gay men. I’m being passed over for opportunities that could lead to being promoted.”

John Schneider, a financial expert with the Queer Money Podcast, said he’s seen the same thing in his own experience.

“Even if they’re out, many gay men trying to climb the corporate ladder try to ‘act straight.’ They try to fit in with the boys’ club so they have access to promotions and raises they might not get if they act ‘too gay,'” he said.

LGBTQ workers are falling behind in retirement planning


When it comes to retirement planning, LGBTQ people are less likely than the general population to have a 401(k), IRA, or other retirement investment vehicle. Fifty-six percent of the general population has a retirement savings vehicle, compared to 47% of the LGBTQ population.

When asked about what’s holding them back from getting on track for retirement, respondents wrote about their strained finances, citing bills, high debt, and difficulty finding decent-paying work.

LGBTQ finances

Spending patterns and LGBTQ retirement preparedness

Another piece of the retirement savings puzzle, though, has to do with spending patterns. According to “The LGBT Financial Experience,” a report published by the financial company Prudential, LGBT respondents were more likely to consider themselves spenders, compared to the general population.

The report asserts that saving for retirement is a big goal for many LGBTQ individuals, but they still tend to spend more and save less.

Schneider agreed that spending habits can lead to high amounts of credit card debt and less money in retirement savings for many LGBTQ consumers. Our survey reveals that 60% of those with student loan debt also have other types of debt. And 79% of those with other types of debt have credit card debt.

“There’s a lot going on here,” Schneider said. “To some degree, keeping up with the Joneses is a major concern in the gay community.”

Schneider recalled that when he was younger, he racked up tens of thousands of dollars in debt with his partner. “We weren’t doctors or lawyers, but society’s image of the rich successful gay leads you to feel like you need to drive the Audi and buy the clothes and hang out at the club,” he said.

On top of that, Schneider pointed out that many LGBTQ spenders are trying to make up for feelings of inadequacy. “If you look successful,” he said, “maybe your parents will finally accept you.”

Overcoming these feelings can be difficult, but it has to be done, said Schneider. He and his partner finally sat down and figured out what mattered to them. They began reforming their spending habits. Today, they’ve paid off all their debt and have started building a tidy nest egg.

“Do some introspection and figure out what you want from life and set your priorities,” Schneider said. “Think about one to three financial goals that matter most to you, and focus on those, instead of trying to impress your neighbors or family.”

LGBTQ youth and paying for school


In some cases, the higher amount of student debt seen in the LGBTQ community might be due to the fact that many young people don’t get financial help from parents. Only 39% of our respondents report feeling “entirely accepted” by their families. Thirty-three percent report being kicked out of their home at some point.

In fact, LGBTQ youth are 120% more likely than their peers to become homeless, according to the “Missed Opportunities: Youth Homelessness in America” report from Voices of Youth Count, a policy research initiative aimed at understanding and solving problems related to youth homelessness.

This can put young people at a disadvantage from the start, said Tremonte. “Many of the youth I serve don’t have the resources to go to college without help.”

One of the biggest issues is filling out the Free Application for Federal Student Aid (FAFSA). Tremonte pointed out that most students have to provide their parents’ income information on the form. However, it can be difficult to get that information.

“Without parent information, a FAFSA might be rejected, leading to no federal aid,” said Tremonte. “Some parents have used this reality for power and control. They tell their student that they have to do certain things or stop being queer in order to get the information [the student] needs.”

Even when students do get information from parents, it can still lead to greater student loan debt.

A parent’s income might be calculated into the expected family contribution, but the LGBTQ student might not be receiving any help. Thus, they might lose eligibility for aid intended for low-income college attendees and be forced to borrow more.

“Because of the way the government has it set up, I’m punished for my parents’ income even though they don’t support me,” lamented one survey respondent who hasn’t been able to qualify for financial aid, despite living in poverty.

Indeed, many students struggle with this issue, regardless of sexual orientation or gender identity. Not all parents provide financial support to their students, even if the government assumes they will. However, Tremonte points out that nonacceptance by parents can further harm LGBTQ students who lack financial support.

Closing college funding gaps with private student loans is also difficult. Many lenders run a credit check. Without a willing cosigner, many LGBTQ students won’t qualify.

Getting financial help in the LGBTQ community


Another concern held by LGBTQ community members is getting financial help. Thirty-one percent of respondents report being denied financial help due to their sexual orientation or gender identity.

“There’s a bit of fear associated with asking for financial help in our community,” said Schneider. “Even if you acknowledge you need help, many in our population feel that traditional banks and other financial services providers won’t work with us if they know our orientation or identity.”

Additionally, for LGBTQ borrowers with low income and credit problems, it might not be possible to refinance student loan debt or get debt consolidation loans to ease the situation.

Schneider said that some financial firms are trying to be accepting and are offering financial services aimed at the LGBTQ community. For students, there are available scholarships based on gender identity and sexual orientation. These resources can go a long way toward helping LGBTQ students reduce their obligations and get on their financial feet.

Ultimately, though, it’ll take continued movement toward acceptance in the wider population for LGBTQ people to catch up financially.

“Tolerance isn’t the same as acceptance,” Tremonte said. “Mere tolerance by society isn’t going to lead to the change we need.

“Many of us don’t feel safe, especially with how things have been going in the last couple of years,” Tremonte continued. “When you’re looking at discrimination, facing all these financial barriers, and wondering if you’re going to be attacked for using a public restroom, the last thing you’re thinking about is whether or not you signed up for your company 401(k).”

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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.
3.69%
10.94%
1
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3.72%
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4.04%
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Undergraduate, Graduate, and ParentsVisit Citizens
Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.