[Author's note: since passage of the the Health Education Reconciliation Act of 2010 on March 26, 2010, Citi has stopped offering federal student loans. The information in this article is no longer current, and is meant as a consumer resource showing what student loans were like through Citi when the FFEL program was still active.]
For the last five years, the volume of private student loans taken out by college students has grown more rapidly than federal student loans. To keep up with the increase in demand, private lenders have broadened their loan offerings.
Citi is one of the largest private education lending companies, and offers a number of federal and private options. This article will explain some of the different Citi student loans available and offer advice for those shopping around for private student loans.
Look First to Federal Loans Offered by Private Lenders
As a general rule, students should look to take out private education loans only after they have exhausted their federal loan options, such as Stafford Loans and PLUS Loans. This is because federal loans, backed by the U.S. government, often have lower interest rates and fees.
Many times, federal loans are offered by the same banks and financial institutions which offer private education loans. These federal loans are available through the Federal Family Education Loan Program (FFEL).
Citi is one of many banks which offers both private student loans as well as federal Stafford Loans and Parent PLUS Loans, the terms of which are established by the FFEL.
Advice on Finding the Best Private Student Loans
Students shopping around for private education loans need to look closely at the interest rates and fees being offered, as loans advertised with low interest rates but high fees can sometimes be more expensive than loans with higher interest rates.
As a general rule, loans with fees of around 4% equal an additional percentage increase in the interest rate in terms of a loan's overall cost.
The best deals on private student loans "will have interest rates of LIBOR + 2.0% or PRIME - 0.50% with no fees." Such loans compare favorably with federal loans, and are available for students who either have good credit or are able to secure a cosigner with good credit.
Citi Student Loans for Undergraduates
CitiAssist offers private education loans for college students who have yet to earn a degree. Below are the terms and rates available:
- Depending on a student's credit, available loans have interest rates from LIBOR + 4.75% to LIBOR + 11.50%;
- Fees can range from zero to six percent, depending upon a student's credit;
- A .25% interest rate reduction is available for those who have payments automatically deducted from a bank account;
- No payments are required while in school;
- Payments may be made up to 20 years after the loan is taken out.
For those with good credit, Citi offers respectable interest rates, though fees can be substantial for students with less-than-stellar credit. Additionally, interest rate reductions for automatic withdrawal are available. The maximum amount possible is $120,000.
Please note that, to qualify, students must be enrolled at least half-time in a participating school, meet the school's academic requirements, and be a U.S. citizen or permanent resident. While a cosigner is not required, those who acquire one will often receive vastly lower interest rates.
Citi Student Loans for Graduate Students
CitiAssist offers private education loans for graduate students enrolled in participating schools. Below are the terms and rates available:
- Depending on a student's credit, available loans have interest rates from LIBOR + 4.75% to LIBOR + 11.50%;
- Fees can range from zero to 6%, depending upon a student's credit;
- A .25% interest rate reduction is available for those who have payments automatically deducted from a bank account;
- No payments are required while in school;
- Payments may be made up to 20 years after the loan is taken out.
Citi offers respectable interest rates for borrowers with good credit, though fees can be substantial for students with less-than-stellar credit. Additionally, interest rate reductions for automatic withdrawal are available. The maximum amount possible is $150,000.
To be eligible, students must be enrolled at least half-time in a participating school, meet the school's academic requirements, and be a U.S. citizen or permanent resident. While a cosigner is not required, those who acquire one will often receive lower interest rates.
Citi Student Loans for Health Professionals
CitiAssist offers private education loans for students pursuing a professional health degree. Below are the terms and rates available:
- Depending on a student's credit, available loans have interest rates from LIBOR + 4.75% to LIBOR + 9%;
- Fees can range from zero to 3.5%, depending upon a student's credit;
- A .25 percent interest rate reduction is available for those who have payments automatically deducted from a bank account;
- No payments are required while in medical school;
- Payments may be made up to 25 years after the loan is taken out.
For those with good credit, Citi offers respectable interest rates, though fees can be a bit high for students with less-than-stellar credit. Additionally, interest rate reductions for automatic withdrawal are available. The maximum amount possible is $275,000.
Students must be enrolled at least half-time in an approved health professions graduate program, meet the program's academic requirements, and be a U.S. citizen or permanent resident. While a cosigner is not required, those who acquire one will often receive vastly lower interest rates.
Private Student Loan Consolidation
The Citi student loans detailed in this article may be consolidated with other private loans held by a borrower. Doing so can extend payment plans and, in some cases, reduce overall interest rates for students with rather expensive loans.
For more information, reference FinAid's guide, from which the information for this article was gleaned.
David Harris-Gershon - David Harris-Gershon – a blogger for Tikkun magazine and a freelance writer on Israel, the Middle East and America’s role in ...
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