Education Refinance Loan FAQ

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1 Education Refinance Loan FAQ Please review the additional information found in Is Refinancing Right for Me? Student Loan Refinancing and the Education Refinance Loan Q: What is student loan refinancing? A: Student loan refinancing is combining one or more student loans and refinancing them into a new single loan with new terms, including potentially a new interest rate, monthly payment amount and repayment length. Q: How does a student loan refinance work? A: There is an application process, including credit approval, similar to what you experienced if you applied for private student loans in the past. The primary difference is that you need to submit details on your existing student loans in repayment, and part of our review process will be to verify the student loan information with your existing loan servicers and determine a payoff amount for those loans. If you are approved for a refinance loan, we will use the proceeds of your new loan to pay off your prior loans. Q: What loans can I include in my refinancing? A: You can include any student loan debt used for financing an education (for example: Citizens One Student Loans, other student loans from other lenders, or your federal loans like ParentPLUS, GradPLUS or Stafford loans). You cannot include any other debt that is not an education loan (for example, credit card or mortgage), even if it was used to pay education expenses. We maintain a list of the most common loan servicers on our application; however, you may submit loans where the servicer is not on our list. During our review of your application, we will review whether loans from that servicer may be refinanced. Q: How much can I borrow with the Education Refinance Loan? A: Minimum Loan Amount $10,000 Maximum Loan Amount $ 90,000 (bachelor s degrees and below) $130,000 (graduate and doctoral degrees, including MBA) $170,000 (professional degrees such as dental, medical and law) Q: What are the eligibility requirements for an Education Refinance Loan? A: The loans being included for refinance must be in repayment and you cannot currently be attending school. If you are currently enrolled in school and are seeking additional financing, please consider our Citizens One Student Loan. Borrowers must be a U.S. citizen, permanent resident, or resident alien with a valid U.S. Social Security Number residing in the United States. Resident aliens must apply with a U.S. Citizen or Permanent Resident co-signer. Borrowers must have at least $10,000 in student loans to refinance Borrowers who have earned a bachelor s degree or higher must have made at least 3 full on-time payments on all the loans they wish to refinance, and may need to provide proof of graduation Borrowers who have not earned at least a bachelor s degree from a federally accredited college or university must have made at least 12 full on-time payments on all the loans they wish to refinance Q: How do I decide if refinancing my student loans is the right decision for me? A: While refinancing or consolidating student loans is often a smart decision, it is not always the right decision for everyone. We created a guide called Is Refinancing Right for Me? that can help you evaluate whether refinancing your student loan debt is right for you. Q: Are there any fees for the Education Refinance Loan? A: There are no application, origination or disbursement fees to refinance your prior student loans. Late payment or returned check fees are the most common fees that may be assessed on the Education Refinance Loan. Q: Can I take out an Education Refinance Loan while I am still in school? A: No. You must be out of school and paying back the student loans you wish to refinance to be eligible for the Education Refinance Loan, even if you already have a degree or graduated from a different school.

2 Q: Do I need to have graduated to qualify for an Education Refinance Loan? A: No, graduation is not a requirement to apply for the Education Refinance Loan. However, you must not currently be in school and must be making payments on the student loans you wish to refinance. By earning your Bachelor s degree, the required number of consecutive on-time payments to qualify is reduced from 12 payments to 3. Q: How good must my credit be to be eligible for an Education Refinance Loan? A: You will need to present a reasonably strong credit history, which is derived from your credit score, along with a minimum gross annual income (borrower and cosigner combined) of $24,000. Although a cosigner is not required, we strongly encourage borrowers with little or no credit history to apply with a qualified cosigner to increase their chances of being approved. A qualified cosigner may also help the borrower secure a lower interest rate. Q: Do you offer cosigner release for the Education Refinance Loan? A: Borrowers may apply for cosigner release after making 36 consecutive on-time payments of principal and interest. When applying for cosigner release, a credit review will be performed to ensure the borrower meets certain credit and eligibility guidelines for holding the loan on their own. For the purpose of cosigner release, on-time payments are defined as being made within 15 days of their due date. Borrowers who use deferment or forbearance will need to make 36 consecutive on-time payments after reentering repayment to qualify for release. Borrowers must complete an application for release and provide income verification documents as part of the review. Those interested can request an application for release by calling our trusted servicing partner, Firstmark Services, at Q: What is the difference between a variable and a fixed rate loan? A: A variable rate loan means that the interest rate will fluctuate monthly and therefore your monthly payment amount may vary over time (a higher interest rate will mean an increase to the monthly payment and a lower interest rate will mean a decrease to the monthly payment). The fixed rate option means that your interest rate will remain constant over the life of your loan and that your monthly payment amount due will stay the same. Q: Do you offer interest rate reductions on the Education Refinance Loan? A: Yes, the Citizens Bank Education Refinance Loan offers our borrowers interest rate reductions. You can view our current offers at The Application Process for the Education Refinance Loan Q: What information will I need to complete my Education Refinance Loan application? A: Both the borrower and cosigner may need to submit the following: Social Security Number (and Alien ID number for Permanent Resident) Gross monthly income Employer name, phone number and length of employment (if applicable) Monthly rent or mortgage payment (if applicable) The current lender/servicer of your existing student loans, full account number of those loans, current loan balances, your monthly payment, the next payment due date, and the interest rate and type. Your most recent monthly billing statement will have all of this information. Q: I am trying to access my application from your website and I don t understand which option to choose. How do I get to the right place? A: In order to access your application you will need to login to your user account. If you do not already have a user account, you can create one from our website ( by hovering your mouse over Log In and selecting Create an Account from the drop-down menu. Once logged in you will be able to view your loan status and complete required steps such as uploading requested documents and e-signing your promissory note. Cosigners who need to submit their portion of the application should click on Access an Existing Application and select Cosign an Application from the drop-down menu.

3 Borrowers who need to complete an application a co-signer started should click on Access an Existing Application and select Add My Information to an Application the Cosigner has Started from the drop-down menu. If you are having trouble accessing your application or user account, please contact our Student Lending Specialists at Q: Will I have to provide you any documents after I submit my application? A: When we review your application, we try to verify both your identity and the income you report on your application through an automated process. If we are unable to verify the information you provide on our own, we will ask you for documents to help us make our decision. All applicants for the Education Refinance Loan will be asked to provide a recent billing statement for each loan they list to refinance. This will help us finalize both the amount to refinance and the address to send payments to your prior lenders. For your convenience, all documents may be submitted via our Document Upload feature, which is accessed by logging into your user account. Q: How can I submit my documents? A: For fastest processing, we strongly recommend that you upload your required documents directly to your loan by logging in to your user account and reviewing the status of your loan application. Once logged in, select the link in the STATUS column on the right side of the screen to access your Loan Summary. On the lower half of the Loan Summary page under Required Documents you can click the Upload Documents link to access the upload feature. Documents can also be submitted via to the address educationrefinance@citizensone.com. Attachments must be in JPEG or PDF formats and may not exceed 15MB. If you prefer to mail your documents, please use the addresses below: Via Standard Mail: Education Finance PO Box Mailstop: RTL295 Providence, RI Via Overnight Mail: Education Finance 480 Jefferson Boulevard Mailstop: RJE295 Warwick, RI Q: What do I need to provide if you ask me for income verification? A: If you are asked to provide proof of income or other documents, we need you to provide us different documents depending on the type of income you listed. We will need to review and verify that the documents match the information you provided on your application. If we can t use the document you submit to verify it, we may have to ask you for an alternate document. If you are self-employed or included additional income on your application, including investment or retirement income, you have two options. You can either reference the below chart and provide us the documentation listed there or you can complete the IRS form 4506-T, which allows us to obtain your tax returns on your behalf. If you choose to complete the 4506-T, please ensure that all fields are completed with no cross-outs and that Box 9 specifies the last two years of tax returns that you want the IRS to send us. This form is available for download on our website at by clicking on the FORMS tab along the top of the page. Because this requires us to obtain documents from the IRS, the 4506-T has a one to two week turnaround for verification. Below are some of the most common forms of income verification: Employment Income received through traditional paychecks Self Employment/ Family Business Income Most recent paystub dated within 60 days of when you submitted your application. If you are self-employed or employed by a member of your family, then a copy of either of the below should be provided: Your two most recent federal tax returns IRS Form 4506-T

4 Social Security benefits, Disability, Retirement/pension, Non-taxable interest income Investment Income Income from a New Job Child support, alimony, or separate maintenance A copy of any of the applicable documents below: Award letter including the frequency and amount of the income Policy agreements Account statements Your most recent 1099R Your most recent federal tax return IRS Form 4506-T A current asset statement to show proof of ownership and a copy of any of the following documents should be provided: Your most recent federal tax return A one-year income history shown through account statements IRS Form 4506-T If you have not yet started your job but want to use that income in your application, you must be scheduled to start employment before your first payment is due. Please provide the below: An executed offer/acceptance letter or employment contract that includes your new employment and salary A copy of any of the applicable documents below: A full, executed divorce decree indicating the amount and schedule of payments A written legal agreement or court decree describing the payment terms If you don t see the income you provided on your application listed or are unable to provide the type of verification requested above, please contact us and we will help you determine the types of documentation we can use for verification. Q: If I am asked to provide proof of residency or social security number, what documents can I provide? A: In order to apply for the Education Refinance Loan, borrowers and cosigners, if applicable, must be U.S. citizens or permanent residents with a valid social security number. For U.S. citizens, you may need to provide a copy of your social security card, your birth certificate or your passport. For permanent residents, you may be asked to provide proof of residency in the form of your current U.S. Citizenship & Immigration Services (USCIS) Form I-551 (Resident Alien Card). If you do not have yours available, a temporary WSCIS Form I-551, a passport stamped "Temporary 551" or Form I-90 (Application to Replace Alien Registration Card) may be used. Resident Aliens must apply with a U.S. Citizen or Permanent Resident cosigner. Q: How do I sign my promissory note? A: You may choose whether to physically sign or e-sign your student loan application and promissory note. If you choose to e-sign your note, this must be done through our application portal, not through the Sign and Certify function on Adobe Acrobat products. You must first review and agree to the Electronic Documents Consent. Then, under your Loan Documents Checklist, you can choose to complete your signature on the application and promissory note. You will be asked to complete four steps: 1) Review your application/promissory note, 2) Enter and validate the e-sign code found on the bottom of the last page of the note, 3) Consent to the terms of the note, and 4) Consent to verify identity using the information found on your credit report. After you select Continue, you will be asked to answer four questions related to your credit report. These questions are generated by Equifax, a credit reporting agency, and relate to items in your personal credit profile. These questions allow us to verify your identify and protect you from fraud. If you choose to physically sign your note, provide a bank statement verifying your name and physical address as stated on the application. If you cannot provide a bank statement, then a utility bill with this information is acceptable, along with a W2 or first 2 pages of your 1040 verifying your name, address and SSN. If you do not file taxes or receive W2s but can be claimed as a dependent on another s tax return, we will accept the 1040 of the individual who claims you as a dependent. Q: What number do I call if I have questions? A: You can call for personalized assistance.

5 Q: What happens after I complete my loan application? A: Once your application is completed and we have validated your income and prior private student loans to refinance, you will be notified of a credit decision. If you are approved, you will choose your loan terms from the options you qualify for, including how many years you have to pay back the loan and your interest rate. If you decide to accept the loan, you will be required to: Acknowledge and accept the terms of our offer You and your cosigner, if applicable, will be required to review and sign your Application and Promissory Note. We will provide these forms to you within the online application experience, with clear instructions on how you must complete them. Prior to our delivery of the loan proceeds to your prior private student loan lenders, we will provide to you a Final Disclosure which will confirm the terms of the loan and provide you a Right to Cancel notice without penalty for a minimum period of 3 business days, along with instructions on how to do so. After Your Education Refinance Loan is Completed and Signed Q: When do I stop making payments on my loans that I want to refinance? A: You should continue making payments on your existing loans until the entire refinancing process is complete and you have confirmed with your existing lender that the loan has been paid in full. Refinancing loans can take 1-2 billing cycles, so you will want to continue making your regularly scheduled payments at least until you receive your first billing statement from us. You should then confirm with your prior lenders that your prior student loans have been paid in full and that no further payments are required. Depending on when your prior lender credits our payment to your prior loans, the amount you owe could change before our payment is credited, leaving you with a small balance with your prior lenders. If you have a remaining balance with a lender after our payoff has been processed, you would need to make payments until the loan is paid-in-full to avoid late fees or other collection efforts by your prior lenders. Citizens Bank asks lenders to return overages to us so that we can apply them as a principal credit to your account; however, your prior lenders may have different policies related to overpayments so you should reach out to those lenders if you have questions. Q: How are the payoff amounts for my loans calculated? A: As part of our review of your prior loans, we calculate an amount to pay off your existing loans based on your interest rate and current balance. In order to allow time for receipt of payment by your servicer, we include an estimated overage to the amount that you have provided. The total amount to be paid to each lender including the overage is found in your promissory note. Q: How does interest accrue on my Education Refinance Loan? A: Interest will accrue daily on your new Education Refinance Loan, beginning on the disbursement date of the loan funds. The disbursement date refers to the date check(s) are sent to your prior lenders. The amount of time it will take to process the disbursement(s) varies by lender. If you receive your first billing statement from us and your prior lender has not yet processed the payoff, you should contact our Student Lending Specialists at You should continue making payments on your prior loan(s) until you have confirmed with the existing lender(s) that the loan(s) have been paid in full. Q: When do I start making payments on my Education Refinance Loan? A: Principal and interest payments will begin within days after your loans have been refinanced. We will notify you in advance so that you have plenty of time to make your first payment on time. Q: Are there any prepayment penalties for the Education Refinance Loan? A: No, there is no prepayment penalty or any penalty for paying more than the minimum monthly payment or for paying off the entire loan early. Q: How do I manage my new loan? A: Our servicing partner, Firstmark Services, offers online access to manage your new Education Refinance Loan. You can access this site at where you will be able to sign up for automatic payment, make payments and do things like change your address, if necessary, to manage your loan.

6 Our Name Has Changed Charter One has taken the Citizens name as we begin to unify all of our businesses and branches under Citizens Bank. With this change, effective April 1, 2015, Charter One s Education Finance division has taken the Citizens One name. Charter One has been a part of Citizens Bank, N.A. for over 10 years, serving customers in 11 states, including the New England and Mid-Atlantic regions. If you have an existing student loan with us, you should have received information regarding this change. And, if you haven t already you will see our new name on your statements and other communications. Everything else remains the same, such as: Q: I already registered for online banking; do I need to do anything? A: No, your username and password will remain the same. Q: Who should I make my payment checks out to now? A: Please continue to make payments payable to: Firstmark Services. Q: Is there a new address I should use to mail my payments? A: No, our address will not change. Mail your payments to: Firstmark Services, PO Box 2977, Omaha, NE