Managing student loan debt can be quite a burden. Consequently, some borrowers refinance in an effort to lighten the load. The Wall Street Journal reports there is now a new option for those who are considering a refinance.
Citizens Financial Group recently announced it is welcoming applications from parent and student federal loan borrowers who desire to refinance into a private loan. This could yield a lower interest rate for those who have a good credit score.
The bank’s fixed interest rates start at 4.74%, while variable-rate loans have rates as low as 2.31%. “The lowest rates are given to borrowers with very high credit scores and long-term employment and who also have a Citizens checking account and set up automatic bill payments for their loan,” reports the Wall Street Journal.
If you’re interested in Citizens Financial Group’s refinance option, you are required to have a minimum of $10,000 in federal student loan debt. You’re allowed to refinance up to $90,000 for debt borrowed for undergraduate studies, and up to $130,000 for graduate and doctoral degrees.
Those pursuing professional studies (such as dental, medical, and law) can refinance up to $170,000. Repayment periods are available for 15 to 20 years.