PNC Student Loan Review

PNC Student Loan Review

PNC bank is very well known as one of the top banks in the country and offers excellent banking services to its clients. It is a big bank with almost 20 branches countrywide.

Now, what you may not know about PNC is that they also offer student loans to graduates and undergraduates across the country, plus they have a refinancing option, for those who want to consolidate their loans.

If you have already exhausted all of your options for grants, scholarships, and federal loans, it is now time to consider a private lender. PNC offers up to $44,000 to undergraduates and $65,000 to graduate students. This is not bad at all.

Good for: Refinancing options

If you are up to your neck in loan repayments, then it is always a good idea to consider refinancing. Refinancing is the process of consolidating your existing loans into one. Most people find themselves in this situation after excessive borrowing.

When you borrow one loan to cover another, and another and another, you will end up with many monthly repayments that could be draining you financially. The best option for you would be to consolidate all of your loans into one.

PNC student loans offer their customers this incredible option at reasonable interest rates.

Other benefits of refinancing with PNC

You shall be able to extend your repayment period, and this means paying less in terms of installments. The longer the period, the lower the monthly premiums.

  • You get to pay your loans at a lower interest rate.
  • You can easily choose between fixed and variable interest rates.
  • In addition to all that, you shall get a 0.5% discount on the interest rate if you decide to sign up for autopay.
  • Their refinancing loan program has a 10-15 years repayment terms.

Repayment terms

  • 4.39% to 6.49% on a fixed APR at a 10-year repayment term
  • 4.49% to 6.59% on a fixed APR at a 15-year repayment term
  • 4.39% to 6.49% on a variable APR at a 10-year repayment term
  • 4.49% to 6.59% on a variable APR at a 15-year repayment term
    You must, however, have excellent credit and at least two years of employment with 24 months of uninterrupted loan repayment.

Not good for: Defaulters

PNC is very strict on people who default their loans. You need to understand that private loans are different from federal loans. With federal loans, you are given at least 270 days of non-payment before action can be taken, but with private loans, you only get 90 days, and your credit report will be adversely affected.

To remain on the good side of the lender, ensure to repay the loans on time, and in case you are unable to do so, seek deferment so that you can get yourself sorted to avoid having a negative entry in your credit report.

Features of PNC student loans

PNC student loan at a glance

Reviewed loan Student loan refinancing
Interest rates Fixed: 4.39% – 6.59%
Variable: 4.39% – 6.59%
Loan terms 10 or 15 years
Loan amounts $10,000 to $75,000
Co-signer release available Yes
Can transfer a parent loan to the child No

Also read: What to do if your parent plus loan is denied

Loan types

With PNC, there are many different categories of student loans that you can choose from. They give you options so you can find what suits you best. Here are some of their categories;

Undergraduate loans

If you are still a college student, you are eligible to at least $40,000 in student loans from PNC. They will not charge you application fees or prepayment fees. Once you get the approval, they will send the money directly to the school to cover all of the tuition costs.

Interest rates

Fixed Interest Rate: 4.52% to 10.84%

Variable Interest Rate: 4.90% to 11.11%

If you enroll for autopay, you are entitled to a 0.5% interest rate discount.

The repayment period for this loan is fixed at 15 years.

Graduate and advanced degree loans

PNC understands that going to graduate and professional school is expensive, and as such, they have designed a loan product just for you. These loans have a higher loan limit compared to undergraduate loans, and the money is transferred directly to your school for payment.

To become eligible for a graduate or professional loan, you must first have been enrolled at least half the time for the degree or certificate program. You also need to have received a letter from the school that you are planning to attend before applying for the loan.

There are four categories in this loan type – Health and medical professions, graduate/professionals, medical residency loans, and Bar study loans.

Interest rates

Graduate/Professional Students: Fixed rate: 5.61% – 11.79%. Variable rate: 5.15% – 11.30%.

Health & Medical Professions: Fixed rate: 5.61% – 11.79%. Variable rate: 5.15% – 11.30%.

Health Professions Residency: Fixed rate: 5.61% – 11.79%. Variable rate: 5.15% – 11.30%.

Bar Study: Fixed rate: 5.73% – 11.79%. Variable rate: 5.25% to 11.30%.

The loans have a repayment term of up to 15 years. They do not have a prepayment policy, and you can be able to pay the loan at any time without being charged anything.

Loan amount – for health professionals, the maximum amount you can get is $65,000, while bar study loan has a maximum of $15,000.

Qualification

PNC student loans are incredibly flexible. To start with, the qualification process is very quick, and if you have good credit, you are likely to receive your loan in a few days.

Even with a non-existent credit history, they will still consider you for a loan.

If you do not have good credit, PNC will offer you a loan based on your cosigner’s credit report.

Whenever you apply for a PNC loan, you must link your banking history to the application.

Repayment period

PNC offers excellent terms when it comes to the repayment of your loan. You can choose anywhere from 5-15 years, and most of their loans have a 15-year repayment period. It may not be the best, because some lenders offer up to 20 years, but it is good enough.

You can actually customize your repayment according to your financial status. Students normally have the options of paying back the loans either at 5, 8, 10, or 15 years.

The best advice I can give you with student loans is: to always choose a longer repayment period because this ensures that you pay the least amount of installment per month, and seeing as you are still a student with a limited amount of income, you do not need a significant burden on your hands.

Later, when you leave college and have stable employment, you can always reduce the period and pay more in terms of the monthly installment.

Benefits of PNC loans

Repayment period

From the review above, you can see that most of their loans have a maximum repayment of at least 15 years. This is much higher compared to most other companies that will only give you ten years to pay back their money.

Their autopay discount of 0.5% is one of the highest you shall find in the market because most companies offer only 0.25%.

Cosigner release

Most lenders offer this option of a cosigner. It merely means that if your credit is not good enough to qualify you for a loan, the bank allows you to bring in a 3rd party, who will cosign the loan with you. This third party should have a good credit report.

The beauty of PNC is that they can release cosigners from their obligation if the loan has 48 consistent on-time payments. This is four years, and you may be surprised to learn that it is quite a sweet deal, considering that most other companies will not release the cosigner until the loan is fully repaid.

Deferment period

This is yet another sweet deal with PNC. They will give you the option to defer your loan payments for up to 6 months after graduation. This gives you ample time to get yourself organized, look for a job, and settle in before you start paying back their loan.

Professional loan products

I have to commend their graduate loans because this is not a product available with most companies. I can even say that if you are studying in the medical or legal fields, PNC has some of the best loan products for you.

They will give you a residency loan, for you to settle down in your new position in life, move into a new house, and even start a family.

As you are preparing for and doing your bar exam, PNC will give you a loan to cater for all of your expenses during this particular time, which is a fantastic idea.

A Learning resource center

On their website, there is a lot of information that has been created for you. This resource center helps to answer all of your most pressing issues and gives you more insight into their loans and terms.

In addition, they explain to you about federal loans, the FAFSA forms and provide a downloadable tool for planning purposes for both current and prospective students.

Limitations

Interest rates

Their interest rates are a bit higher compared to what you will find in the market after serious research. It is essential to do adequate research before deciding to get private funding because of the interest rates. There are many lenders with flexible terms that will work great for you.

Loan limit

For undergraduate students, the loan limit is $40,000, which is not enough to cover all of the costs associated with your degree. This is a terrible limitation because most companies will cover the entire 100% fee requirement.

Comparison with other lenders

Lender Interest rates Loan terms
PNC student loans Fixed: 4.39% – 6.59%
Variable: 4.39% – 6.59%
10 or 15 years
Discover
Student Loans
Fixed: 5.49% – 12.99% APR
Variable: 4.12% – 11.87% APR
Loan term

15, 20 yrs.’

Ascent

Loan term

Fixed: 4.55%
Variable: 4.14%
5, 10, 15 yrs.
Citizens Bank   Fixed: 4.90%
Variable: 3.96%
5, 10, 15 yrs.
College Ave       Fixed: 4.72%

Variable: 3.96%

5, 8, 10, and 15 yrs.’
EDvestinU          Fixed: 4.50%
Variable: 4.40%
7, 10, 12, 15, 20 yrs.’
INvestEd             Fixed: 4.63%Variable: 3.70% 5 – 15 yrs.’
MEFA   Fixed: 3.95% 10, 15 yrs.’
Sallie Mae         Fixed: 5.49% – 11.85%

Variable: 4.25% APR – 11.35%

5 – 15 yrs.’

Analysis

From the table above, you can see that PNC is a fair student loan company, and most of their terms are similar to the other lenders. What you need to understand is your specific needs, before deciding to use PNC. But I would encourage medical and law students to consider PNC as it has the best products for them.

Our thoughts on PNC Loans

PNC Student loans figures Rating Review
Fixed APR

4.39% – 6.59%

Fair For private lenders, this is the industry standard, which means that they are just okay.
Loan amount:

 

$5,000 – $75,000

Not good. This is not good at all. In fact, their undergraduate loan limit is only $40,000 which is not enough to cover the college fees. PNC is good as a second option, that is when you have already received your federal loan and grants and they are not enough, then you can add PNC loan to cover your entire college fee.
Loan repayment terms:

10-15 years

good This is ok, an industry standard, although you can find other companies offering up to 20 years repayment period.
Loan Percentage

Unclear

Not good They will not tell you the percentage they shall cover, but rather the limit you can get, and this can be quite frustrating, especially when the limit is not enough to cover your college costs.
Origination fees:

None

Very good Most other lenders charge this, and therefore it is a big plus for PNC loans.

Please also read the following reviews of other student loans on my website

Plus, many more…

Conclusion

If you are a college student looking for a private loan lender, then, you should definitely consider PNC. Though their terms are not as great as other companies, they are still a worthy option, and most especially for those in the medical and legal fields.

They have many loan products that you can choose from, which means they are diverse, and this gives you the ability to look for what can best suit your needs.

PNC would be perfect if you want to top up what you already have. They are not a good idea as the main financier, because their loan limits are quite low.

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