Private Consolidation Loan FAQ

What is a Citibank Private Consolidation Loan?

A Citibank Private Consolidation Loan combines several existing private student loans into one new loan. You can enjoy the convenience of a single new loan with a low fixed or variable interest rate, and one monthly payment.

Should I apply for a Private Consolidation Loan individually or with a co-signer?

You may apply for a loan on your own. However, if you do not have an established credit history, you may prefer to apply with a qualified co-signer to potentially receive a lower interest rate. Credit histories for you and any co-signer may be used as a factor in determining your eligibility for a loan. The interest rate charged is a reflection of the credit score of the applicant and a co-signer, if applicable. Apply Online to get a credit response in 3 minutes or less and see the interest rate for which you qualify. You may be able to get a lower rate if you apply with a co-signer.

What are the current interest rates for the Citibank Private Consolidation Loan?

Private Consolidation Loans offer you a choice between a fixed or variable interest rate. The fixed interest rate is as low as . The variable interest rate is as low as . See APR examples.

How should I select my interest rate?

Select a fixed rate if you want to know what your payment will be every month. Fixed monthly payments allow you to easily plan and budget. This is the most common rate choice of borrowers. A variable rate will be subject to change based on the fluctuations of the underlying interest rate index, which in this case is the 3-Months LIBOR (London Inter-Bank Offered Rates). Whether you choose a fixed or variable rate depends on your level of comfort with interest rate risk. You should choose the rate you prefer. View APR Examples.

How much will my monthly payments be?

Your monthly payment will depend upon how much you borrow and your interest rate selection. To estimate your monthly loan payment amount, use our Private Consolidation Loan Calculator.

Are there any options to lower my interest rate and monthly payment?

As a Citibank Private Consolidation Loan borrower, you can save money and reduce your interest rate by taking advantage of all the Citibank borrower benefits.

			0.25% interest rate reduction

			With our auto-debit payment program¹, you will receive an interest rate reduction of 0.25% when your loan payments are automatically withdrawn from your bank account and you receive electronic statements only.

			0.50% interest rate reduction

			When you make your first 48 consecutive monthly payments on time you will automatically receive a 0.50% interest rate reduction during repayment for the remaining term of your loan¹. This could add up to big savings!

How do I know if my loans are eligible to be consolidated?

Loans eligible for the Citibank Private Consolidation Loan are:

			CitiAssist® Undergraduate Loans
			CitiAssist Graduate Loans
			CitiAssist Health Professions Loans
			CitiAssist Law Loans
			Private education loans from other lenders
			Private Consolidation Loans (reconsolidate a Private Consolidation Loan from another lender)

Please note: Non-certified private education loans cannot be consolidated. In addition loans that are not incurred soley to pay for qualified higher education expenses cannot be consolidated, such as CitiAssist Bar Study or CitiAssist Health Profession Residency Loans.

What are the credit eligibility requirements?

You and/or your co-signer:

				Must be over 18 years of age.
				Must be a U.S. citizen or permanent resident with an U.S. based address.
				Must have a combined minimum income of $18,000 ($1,500 per month). Income and employment verification may be required.

Each private loan being consolidated must meet the IRS definition of a qualified education loan and the interest paid on these loans must be 1098-E eligible. See IRS Publication 970, “Tax Benefits for Education” at www.irs.gov.

Are there any fees for obtaining a Private Consolidation Loan?

Yes. You may be assessed a loan origination fee depending on your credit and that of your co-signer, if applicable. Review your Private Consolidation Loan promissory note and approval letter to determine if there is a fee.

How do I determine if I should apply individually or with a co-signer?

You may be eligible for a Private Consolidation Loan based on your own credit, if you are a U.S. citizen or permanent resident, at least 18 years of age, and you have:

		A satisfactory credit history which includes at least 12 months of borrowing, charging and repaying.
		No liens, judgments, charge-offs, excessive 30, 60 or 90-day delinquencies on any loans or revolving charge accounts, etc.
		A minimum verifiable income of at least $18,000 per year ($1,500 per month).

However, if you do not have an established credit history, you may prefer to apply with a qualified co-signer to potentially receive a lower interest rate.

Note: Co-signers may be released from a loan if the borrower has made the first 36 consecutive monthly payments on time, is creditworthy and is a U.S. citizen or permanent resident at the time the release is requested.

International borrowers must always apply with a U.S. citizen or permanent resident co-signer.

Can I consolidate my loans while I am attending school?

Yes. You can consolidate your private loans if you are still in school and are within two years of graduating. Loans must be 90 days or more past final disbursement.

Can I get an in-school deferment on my Private Consolidation Loan?

If you are attending school at least half-time you will be eligible for an in-school deferment on your Private Consolidation Loan. Keep in mind that you will need to begin repaying your Private Consolidation Loan immediately upon graduating, withdrawing, or dropping to less than half-time enrollment status. There is a grace period of six months for borrowers who consolidate while in school. You can defer payments while in school for up to six years and while in residency for up to five years.

How do I apply for a Private Consolidation Loan?

Citibank offers you three ways to apply for a Private Consolidation Loan:

Apply & Sign Online
Apply & sign online using Citibank’s Online Private Consolidation Loan Application. Let our online application guide you through the application. It’s fast, secure and easy!
Download an Application (PDF ~176KB)
Complete instructions on how to fill out and where to send your application are included. You must have the Adobe Acrobat Reader Software, Version 3.0 or greater, installed on your computer in order to view and print the application.
Request an application be sent to you by mail
Use our online form to request an application be sent to you by mail.

What is the maximum/minimum loan limit for a Private Consolidation Loan?

The maximum loan limit is $275,000, and the minimum loan limit is $7,500.00.

How do I check the status of my Private Consolidation Loan Application?

To check the status of a Private Consolidation Loan Application, please go to Applications in Progress, or call our Customer Service Department at 1-800-967-2400, Monday – Friday, 8:00 a.m. to 11:00 p.m. Eastern Time to speak with a Citibank Customer Service Representative. TDD users can call toll free at 1-800-846-1298.

What if I forget to consolidate one of my eligible student loans?

To add the loan to your existing Private Consolidation Loan, you will need to complete a new application. The process is quick and easy when you apply online, as much of the required information will be pre-filled with what we have on file.

Once my student loans are consolidated, is there a way to “unconsolidate” them?

No. The original student loans are paid in full and cannot be recreated. Once consolidation begins, there is no way to reverse the process.

Should I keep making payments on my student loans while I’m waiting for my Consolidation Loan to be processed?

Yes, continue to make all regular payments. Once we process your signed documents, we send your existing private student loan holders the loan payoff amounts you provide to us. You will be notified by mail when your Private Consolidation Loan has been completed. At that time, you will also receive a repayment schedule, along with the specific terms for your loan.

How long will it take for my application to be processed?

Depending on the number and type of loans you currently have, it takes approximately 30 days for the Consolidation Loan application to be processed. In order to expedite your loan processing, you should respond to request(s) for additional information in a timely manner.

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