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    Citizen One Vs. College Ave: Student Loans Compared

    Citizen One Vs. College Ave: Student Loans Compared

    Both Citizen One and College Ave have purposefully constructed their student loan packages with the needs of students in mind. They have varied repayment plans, an easy application process, competitive rates and terms, and a lot of other value-added benefits.

    In this blog, we compare the products of both lenders. Read on to explore the advantages and drawbacks of each brand.

    Citizen One Student Loans 

    Citizen One is a fairly new but increasingly successful student loan provider. The business is part of Citizen Bank's lending division and offers loans for both undergraduate and graduate students, as well as parents looking for help funding their children’s education.

    Who It's Best For

    The loans offered by this bank are the best match for:

    • Borrowers with existing balances who wish to consolidate all their debts into a single account
    • Borrowers who need a flexible repayment plan
    • Those who agree to interest costs that exceed the original amount due to an extended period of repayment
    • Those having an annual income exceeding $24,000
    • Individuals who prefer to avoid origination fees along with prepayment penalties and late fees
    • Borrowers who wish to apply online given they may not have time to visit physical branches

    Pros and Cons

    Pros

    • Interest rates are competitive
    • Waiver of origination, application, or late fees
    • Flexible payment plans
    • Options for communicating online
    • Consolidation of all loans into one
    • Options to refinance
    • Personal attention and support assured
    • Multiple types of loan programs and mortgages to choose from
    • Up to 0.50% discount on interest
    • Branches available in 12 US states

    Cons

    • Cosigner release can take up to 36 months
    • Requires a high credit score
    • Doesn’t provide the option of forbearance

    How To Qualify

    The applicant should be a US citizen or a permanent resident. They should be in a degree-grant program and enrolled at least half-time in an institution that the bank recognizes. They should also possess a good credit score (700+) and be of legal age (18+). If the applicant is underage, a cosigner is required.

    Approval Process

    The approval process starts as soon as the application is submitted. The bank evaluates eligibility criteria such as age, the institution you propose to attend, credit score, citizenship, and co-signer qualifications if warranted. It usually takes one to three weeks to process the application.

    Fees

    The most significant advantage of a Citizens One student loan is that there are no fees. This includes application fees, annual fees, and late fees, which are generally charged by any bank or financial institution. In this context, it’s noteworthy to mention that there are no hidden charges as well.

    College Ave Student Loans 

    College Ave is a financial institution created to provide student loans in a different and uncomplicated manner. Their overall intent is to reduce the stress levels and anxiety of accessing the funds for aspiring college students or their parents to pay for a degree. They specialize only in private student loans and are backed by two FDIC-supervised banks.

    Who It's Best For

    The student loans offered by College Ave are best for:

    • Borrowers who desire flexible repayment terms
    • Those who prefer to choose between fixed and variable rates of interest
    • Individuals who would rather complete the application process entirely online
    • Students and parents seeking to refinance existing balances at better rates
    • Borrowers on the lookout for additional discounts and cashback offers
    • Those who want to check prequalification without impacting their credit score
    • Borrowers trying to save on origination, processing, and prepayment costs

    Pros and Cons

    Pro's

    • Low interest rates and flexible repayment options
    • No hidden fees including prepayment, origination, or application fees
    • 0.25% discount when borrowers use autopay
    • Generous refinancing for select medical students
    • Prequalification without impacting the credit score of the borrower

    Con's

    • In most cases, the lender requires a cosigner
    • Forbearance is subjective and approval is at the lender’s discretion
    • Strict criteria to get cosigners released

    How To Qualify

    The applicant and cosigner must be a US citizen or a permanent resident with a Social Security number. In the case of an international student, the cosigner must be a US citizen. Apart from this, you must be enrolled in an educational institution that is recognized by College Ave.

    Approval Process

    A decision about approval or decline is made immediately after the application is submitted. An email from College Ave called First Disbursement should have been initially received. The application process is kept simple by College Ave, and it takes it less than three minutes to announce its decision.

    Fees

    The bank doesn’t charge loan origination, application, or prepayment fees. For late payments, borrowers are charged the lesser amount of either $25 or 5% of the monthly amount. The bank also offers a 0.25% discount on the interest rate when the borrower selects the autopay option.

    Bottom Line

    In a side-by-side comparison, College Ave emerges as the better option for students who wish to pay off their loans before they finish college, while Citizens One allows for extended repayments with the lowest APRs. Both lenders provide lucrative offers and discounts for students as well as parent borrowers. Before applying, carefully consider your requirements, financial stability, and long-term plans to choose the lender that matches your financial circumstances and outlook best.