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,â€ 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.