Citizens to offer new student loan refinancing with Gradifi

BOSTON – Citizens Bank has partnered with a Boston-based student loan pay-down startup to offer a new refinancing service to its customers.
Citizens, a Citizens Financial Group Inc. company, is working with Gradifi – founded in 2014 – and estimates the student loan services will save customers an average $137 per month and lower rates on average by 1.5 percent.
“We have been approached by many potential student loan refinance partners, but Citizens Bank brings a great set of products with the stability of a bank that is committed to an exceptional customer experience,” said Gradifi founder and CEO Tim DeMello in a statement. “We’re really excited to have Citizens Bank join us in the effort to help employer clients and their employees get to a better place.”
DeMello estimates the company’s “Gradifi Employer SLP” repayment program can generate up to $10,000 in savings on its own, but when combined with Citizens education refinance loan it can create an additional $1,644 in annual savings.
“While a college education is one of the best investments a young adult can make, paying for it afterward while trying to achieve other financial milestones can be difficult,” said Brendan Coughlin, president of consumer lending at Citizens. “Citizens is committed to working with borrowers to help them reduce their payments and we are pleased to partner with Gradifi to help more borrowers achieve their broader financial goals.”
The company’s SLP Plan is designed to give businesses the opportunity to pay down employees’ student loan debt, as companies contribute directly toward employees’ student loan principal on a monthly basis, according to a press release.