Citibank Student Loan Consolidation for Paying Off Debts
Citibank is an international bank that not only provides personal financial loans but also offers commercial services. There is one section of the Citibank’s loans that is specifically for college and university students as well as their parents. The Citibank student loan consolidation is one popular service offered by the private lender that helps financially unstable students pay off their outstanding amount.
What is the Citibank Student Loan Consolidation?
The federal loans which are offered by private lenders are there to help college students pay their fees and other educational expenses. Almost every undergraduate and graduate student applies for at least one of these loans because they have a high approval rate and quick disbursement.
Most college students apply for more than one of these loans and add loan upon loan to pay for the expensive college degree. Citibank helps these students pay off the loaned amount with the Citibank student loan consolidation plan.
Terms of the Citibank Student Loan Consolidation
There are some predefined terms of the federal consolidation loan and it only offers a fixed interest rate. These rates are calculated based on the weighted average of the interest rate offered by the federal loan with a maximum limit at 8.25. There is no credit score requirement since the individuals applying are still in school.
The loan is for those students who are unable to pay the monthly payments on time and or if they have already defaulted on a loan. Those who have applied for more than one federal loan should also consider choosing the Citibank student loan consolidation.
Reduce Loan Payments to a Single One
The Citibank student loan consolidation can help a private student pay off their loan taken either from Citibank or any other private lender. The loan is also applicable on those who have applied for student loan consolidation previously. The best repayment practice is applying for an interest rate deduction such as 0.25% for those bank account holders that let the bank automatically deduct the loan payment from their account. Also there is 0.5 to 1% discount if you are punctual in repayment for 36 installments in a row.
There is no fee associated with the loan and you will not be penalized if you wish to pay off the loan earlier than it was due. The loan is there to help facilitate students in paying off their loans and decreasing their debt.