With Sen. Elizabeth A. Warren's student-loan-refinancing bill stalled in the Senate, a bank with New England roots is giving some borrowers a break on their federal loans.
On Tuesday, Citizens Financial Group will become the first lender to offer refinancing to all qualifying borrowers, not just existing customers. Interest rates will start at 4.74 percent for fixed-rate loans and 2.31 percent for variable-rate loans, with no origination or disbursement fees.
The product will allow borrowers with older federal loans and good credit to take advantage of today's low interest rates, much as consumers do with mortgages. Until now, most banks have refinanced only private student loans, if any.
Brendan Coughlin, president of education finance at Citizens Financial Group, said customers had asked for the ability to refinance both types of loans, together. "We believe the market is ripe for this," he said.
But refinancing is not for everyone, and not everyone will qualify.
Read more at The Chronicle of Higher Education: http://chronicle.com/article/Private-Lender-Enters-Nascent/148821