Loan Consolidation FAQ

WHAT IS A CITIBANK CONSOLIDATION LOAN?

A Citibank Federal Consolidation Loan combines several existing student loans into one new loan. You can enjoy the convenience of lower monthly payments, a single fixed interest rate and one monthly payment.

WHAT IS THE INTEREST RATE?

The interest rate for a Consolidation Loan is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of one percent. This rate is fixed and cannot exceed 8.25%. You may be able to take advantage of a rate as low as 5.3751.The interest rate on a Consolidation Loan is set according to federal law.

HOW CAN I CONSOLIDATE MY LOAN WITH THE GRACE RATE?

You have the option of consolidating your loan during your grace period and taking advantage of a rate as low as 5.375%1. It is important to remember that you must indicate the month and year of your grace end date in #26 on the Consolidation Loan application if you would like to hold the processing of your Consolidation Loan until the end of your six-month grace period. The rates in effect at the time that you apply for your Consolidation Loan will be used in the weighted average calculation to determine the rate on your Consolidated Loan.

WILL THE REDUCED INTEREST RATE THAT I AM RECEIVING DUE TO BORROWER BENEFITS ON MY EXISTING LOANS BE USED TO CALCULATE THE FIXED INTEREST RATE ON MY NEW CONSOLIDATION LOAN?

No. Interest rate reductions received as borrower benefits on existing loans will not be considered when determining the applicable interest rate on your consolidation loan. For example, if the applicable rate on your existing loans is 6.80%, but you were receiving interest rate reductions as a borrower benefit that reduced the interest rate to 5.80%, the interest rate used to calculate your new Consolidation Loan will be 6.80%.

HOW CAN I FIND OUT WHAT MY CONSOLIDATION LOAN PAYMENT WILL BE?

To estimate what your payments and total amount of interest paid may look like, input various interest rates into our Loan Consolidation Calculator. After your application has been approved, the disclosure and monthly account statement will include your exact payment amount and interest rate.

HOW DO I KNOW IF I AM ELIGIBLE?

If all of your loans are in grace, repayment or in a deferment/forbearance, you may be eligible for a Citibank Federal Consolidation Loan. Your loans that are in an in-school status cannot be consolidated until you graduate or leave school. If you have defaulted on any of your loans, you need to make satisfactory payment arrangements with your current holder and provide evidence of that to Citibank. Loans subject to a judgment or wage garnishment are not eligible for consolidation.

CAN I CONSOLIDATE MY LOANS WHILE I AM ATTENDING SCHOOL?

If you are currently a full- or half-time student, you can apply for a Consolidation Loan upon graduation. For loans disbursed prior to July 1, 2006, the interest rate during the grace period is 0.60% lower than the Stafford repayment rate. By consolidating while you are in grace, you will have the opportunity to secure a lower interest rate and start paying down your student loans.

CAN I GET AN IN-SCHOOL DEFERMENT ON MY CONSOLIDATED LOAN?

If you are attending school at least half-time you will be eligible for an in-school deferment on your Consolidation Loan. Keep in mind that you will need to begin repaying your Consolidation Loan immediately upon graduating, withdrawing, or dropping to less than half-time enrollment status. Citibank offers a special Consolidation Loan four-month Lender Option forbearance that may be considered to help you ease into repayment.

HOW DO I APPLY FOR A CONSOLIDATION LOAN?

Apply today to lock in a low fixed interest rate. Citibank offers you three ways to apply for a Federal Consolidation Loan: