Citibank Student Loans: Complete Review

Citibank Student Loans: Complete Review

Citibank was once a student loan provider and financed millions of dollars worth of education for students in the United States. 

In 2010, Citibank sold off its student loans unit and then stopped servicing any remaining student loans in 2017. If you once had a loan with Citibank, you might be wondering what happened to your debt and where you can make your Citibank student loans payment going forward. 

In this article, we will outline exactly what happened to Citibank student loans and how to find where your student loan is now. Let’s dive into it:

About Citibank

Founded in 1812, Citibank is an institution that services Citibank cards, loans, and gives members access to financial advice, tools, and resources. Citibank is a subsidiary of Citigroup and deals with the consumer division of the business. 

The company now has over 2,000 branches in 19 countries including the United States, Mexico, United Arab Emirates, Russia, Poland, and India. Their headquarters is based in New York City. 

What Happened To Citibank Student Loans?

In 2010, Citibank started selling its student loan unit off to other companies such as Sallie Mae, Discover, Firstmark Services, and the Department of Education. Any loans that weren’t sold off were serviced by Citibank until they fully shut down all student loans in 2017. This final change came about because it was in 2017 that the Consumer Financial Protection Bureau (CFPB) discovered that Citibank was handling its student loans incorrectly. 

They actioned against the company being able to service student loans due to some of their practices stopping consumers from taking full advantage of the benefits that they were entitled to. This means that if you had a student loan with Citibank from 2006 to 2015, you may be entitled to a share of the $3.75 million that the company owes its borrowers. This refund can range from $47 to $250 and can be obtained by contacting Citibank directly. If you haven’t received a refund from Citibank, it might be a good idea to give them a call and see what you are entitled to. 

Do You Have Citibank Student Loans? Here’s What To Do Next

If you had Citibank student loans and are unaware of where they have transferred to you, it shouldn’t be too difficult to find out. Most Citibank student loans were purchased by Sallie Mae, Discover, Firstmark Services, and the Department of Education. The company which purchased your loans should have sent you an email or letter with information about the switch.

Occasionally, borrowers weren’t informed about the change in student loan providers and if that includes you, here’s what to do next:

Firstly, check the National Student Loan Data System (NSLDS) as they contain all the details surrounding federal student loans. This database is extensive and it can be accessed with your Federal Student Aid ID (FSA ID). All students who filled out a FAFSA after May 2015 will already have an FSA ID. If you do not have an FSA ID, you can create one on the Federal Student Aid website. 

With your FSA ID, you can visit the NSLDS website and search for your federal student loans via the Financial Aid Review. This lists all the details you might need including the lender, servicer, and guaranty agency. Through this site, you can also contact your servicer about making any changes to your student loan repayment plan or sort out any other issues.  

Sometimes your loans aren’t listed in the NSLDS because they are serviced through a private lender. Finding these loans can be more complicated. The easiest way to find which private lender is looking after your student loans is to check your bank statements. You should still have student loan repayments coming out of your elected bank and the statements for these payments will list the agency managing your student loans. 

If for some reason, this information isn’t available or no payments are coming out of your account, you will need to check your credit report. Every individual is entitled to a free credit report from one of the three major bureaus every year. You can check AnnualCreditReport.com to find your credit report. Credit reports outline all of your debts and who is servicing them, including your student loans. From here, you can contact the provider and organize how to make repayments on your student loans going forward. 

Why You Should Stay On Top Of Your Student Loans

Whether you have had Citibank student loans or have loans with another provider, it’s vital to know your repayment schedule and loan servicer.

Whenever you change to a new student loan servicer, check that payments are being made from your account to avoid any late fees or charges. While most transitions are seamless, if there are any discrepancies, you can pay for it big time and it may even affect your credit score. 

It is key that you learn how to stay on top of your student loans. The more you learn about it, the faster you can see yourself free from this burden.

Refinancing Citibank Student Loans

Once you have located your Citibank student loans, you may decide that you want to refinance them. Refinancing is a great option if you aren’t happy with your current loan rates and terms. Refinancing a loan means that your new lender will pay off your student loans with your old lender and set up new loans for you with their organization. By refinancing student loans, you can renegotiate your interest rates, repayment terms, and more. This could save you money in the long run, so it is worth looking into this option. 

To refinance your loans, you can use a tool like FutureFuel.io’s student loan calculator. This will help you quickly compare different lenders and see which rates and repayments work best in your situation. 

The following lenders are great options if you are considering refinancing your Citibank student loans:

  1. Sallie Mae: Offers loans with repayment terms between five and fifteen years. Their interest rates can be as low as 3.12%. They also have student loans available for both graduates and undergraduates. 
  2. Suntrust Student Loans: This company has three student loan options to choose from:  The Custom Choice Student Loan, Union Federal Private Student Loan, and the Graduate Business School Loan. With these loans, students can take out up to $65,000 for the Custom Choice Student Loan and Union Federal Private Student Loan and $95,000 for the Graduate Business School Loan. Repayment terms range from seven to fifteen years and have interest rates as low as 2.88%.

Whatever you decide to do, it’s always important to thoroughly research your options and get quotes relating to your situation. Tools like a student loan calculator are extremely useful and shouldn’t be overlooked when hunting down answers. 

Final Assessment

Unfortunately, Citibank was a poor option when it came to student loans and have caused a lot of confusion for borrowers. Additionally, the company has been making several wrong calculations regarding Citibank student loan payment. As a consequence, many borrowers have been missing out on their benefits. If you had a loan with Citibank from 2006 to 2015, don’t forget to contact the company to see if you are entitled to any of their refunds due to these errors. 

If you are looking to get a new loan, there is a variety of financial institutions out there that are more reliable when it comes to servicing your student loans. Regardless of the position that you’re at, being on top of the situation is crucial. So ensure you research every student loan option before deciding what works for you.

Ready to Refinance Your Student Loans?

Here are a few of the best options of 2020.

LENDERVARIABLE APRELIGIBLE DEGREES 
2.31% - 6.89%Undergrad &
Graduate
VISIT CREDIBLE
1.99% - 6.89%Undergrad &
Graduate
VISIT SPLASH
3.49% - 6.99%Undergrad &
Graduate
VISIT FIGURE
1.99% - 6.65%Undergrad &
Graduate
VISIT LENDKEY