Good Student Loan & Other Services: Citibank, CitiAssist
Written: Jul 26 '01 (Updated Aug 09 '01)
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Product Rating:
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Pros: very fast, simple, nice customer service reps online and on phone, great online services
Cons: none
The Bottom Line: Simple instructions, courteous staff, fast credit decisions, great online services and set up. Check out Citibank for your financial needs and check with your school for partnerships for better loans.
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| baby.baby's Full Review: Citibank |
CitiAssist Private Student Loan
Reasons for Applying
A loan application I had sent to another bank had gotten "lost" somewhere between the school and the bank and I didn't want to chance snail mail over again since I had just wasted six weeks waiting for a decision. I was just getting frustrated. I called back a few days later and it had been denied, but no one would tell me why or try to help with suggestions. I didn't know if I hadn't filled something out, did it incorrectly, or if my co-signer had bad credit.
I had applied to that loan because my college had a good deal with them. I am interested in Citibanks student credit cards which double as an ID and security feature and have rewards and cash back offers. Somehow I stumbled upon their Citiassist page (www.citiassist.com). They were advertising a five-minute credit decision feature and also the fact that you are entered in a $5,000 scholarship when you finish applying.
The Original Outcome
I went to my school's website because I knew they offered specials with Citibank loans but this particular page/loan offered wasn't what I had remembered. It was for this loan though and the terms were better than the other one I had just tried. I don't know if something with one of the banks changed since I last looked or if I somehow overlooked the differences in how they determine their rates.
I applied for the loan, but due to the huge number of applicants the credit decision couldn't be made in five minutes. After going back to the page the next day and the following day after that, asking if they had an idea about when I would find out if I was accepted for the loan. (The page had estimated less than a business day for two days)They replied quickly and were very kind and helpful. Soon after that I received their decision. I was rejected (which felt as horrible as being denied admission to college) and pretty much wanted to give up. I didn't want to call up and ask what had happened just to become more upset without getting any answers. My boyfriend called up for me and then put me on the phone.
They again were very, very polite and helpful and told me that my co-signer hadn't met their requirements and that I could reapply easily with another co-signer. I got off the phone feeling relieved that I knew why the loan was rejected and appreciative of the help I received.
Reapplying
I was really upset, though. I didn't have any other relatives willing to co-sign and didn't know what was going to happen. My boyfriend offered to try and I finally agreed. I felt really weird/bad as this is a big thing, but we had come to the conclusion that he probably didn't have enough credit for it to go through.
I went back to the loan page and it was easier than I had expected. All my information was on the new application when I signed into my account (I could change it if I needed to), so it was going smoother than I expected already.
What Happened Next
I didn't get an answer in five minutes again, but I did get one the next day. We were accepted for the loan!! I followed the simple instructions that followed to complete my part of the application.
Technical information about applying
If you need a student loan, go with this one. Although you might not get a decision in five minutes if they have a large number of people applying for loans, it's much easier and faster than sending it all through the mail and waiting weeks for any decision at all.
The instructions are very simple and straightforward and all the terms and conditions are written out. There are even examples of different things worked out for you to see. When you are able to further complete the application after being accepted based on the credit decision, you will need to print out and sign the promissory note. They contact the school for you. You can snail mail or fax the promissory note and you can access your information about your loan online for the years to come. They estimate a week or two for the amount of time needed to contact your school and have the loan amount requested approved or lowered.
Your school might have some agreement with them that has established different rates, but if not, these are the features of this loan:
*No loan fees! You don't ask for $8000, loan that money, but have to pay a few percentages of it to them, which means you're not really loaning the amount you asked for.
*The interest rate (undergrads and grads alike) is the prime rate + 0.50%, but it could be lower if you attend a school with some agreement between them. If this is the case, Citibank will realize it when you enter your school name.
*If you are a graduate student with positive credit history, you do not need a co-signer!
*No payments required while you are in school, but you can make interest payments to lower the amount you pay later on.
**If you make your first 48 payments on time you get a 0.5% interest rate reduction for the rest of time you have your loan!
**If you have payments withdrawn from your bank account (EZ Pay), you get 0.25% interest rate reduction the entire time you pay this way.
**You may qualify for these if your school participates. Check on your school's financial aid website or apply for the loan - they will tell you and take care of it.
*If you're interested in knowing how you will have to repay your loans, there are many options. Undergrads have 12 years while grad students have 15 years under normal circumstances, again you may have more time if your school participates with them. You can also choose to make interest-only payments for 24-48 months after graduating or deferring your loans.
*No fees or penalty for paying off your loan early or paying extra early.
+Different terms for Medical/Dental and residency loans.
Regardless of your school
Even though many of these option are only for certain students (example is New York University), the loan is still good. There is no fee at all. The rates are simple. prime rate + 0.5% for the life of the loan, not PR + 0.5% during school and + 0.75% during repayment. You're not penalized if you pay your loan off before the time allotted, and your not penalized if you pay during school or pay over the amount your required to pay a month. These are all things to check for when considering a loan.
CitiAssist Plus and Federal Loans
For your government loans, Citibank (www.studentloan.citibank.com) offers great savings also.
Regardless of the school you attend you, you save:
*2.0% interest rate reduction for the rest of your loan if you make your first 48 monthly payments on your Stafford Loan on time
*0.5% interest rate reduction for using EZ PAY to repay your government loans
If you attend one of their partner schools, you could also save:
*1.00% principal reduction at the start of repayment of your Stafford Loans, in addition to 1.00% guarantee fee savings
*1.00% principal reduction 90 days after last disbursement in addition to the 1.00% guarantee fee savings
*0.25% interest rate reduction during repayment automatically
*Special repayment interest rate caps: for Stafford Loans, the usual cap is 8.25% meaning no matter what the P.R. is, and how much they usually add to it (0.5% in a normal case here), you won't be paying more than 8.25% interest. Here, you have an opportunity for a cap at 8.00%
-for Plus Loans the usual cap is 9.00%, here it could be 8.75%
AS A GENERAL RULE for all your financial and college needs, keep on top of it. Don't think it's all gotten to its place just because you sent it correctly and don't wait too long to make sure it all worked out!!!
Now that I've got My Loan/Credit Card, Can I Easily Look at it?
Yes. Everything is online. If it's not online, call them up. There's information on everything at their website. If you signed up on their account for anything, you can view all your stuff online with them. You can view past statements, see how much paying back a loan would cost all the different ways they offer, do comparisons, find out about special governement laws, look up your current interest rates, get entrance and exit counseling for education loans, have reward credit cards in college, view any government loans you used them as the guarantor for, and so much more. Better yet, the site is SIMPLE to navigate and if you want to learn more about your current things or information on products/services you might use in the future, check it out! You can sign up even if you don't have an a financial account there and still look up information! Their website is like a treasure chest for your financial responsibilities!
Recommended:
Yes
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baby.baby
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Reviews written: 26
Trusted by: 3 members
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I like reading, writing, gymnastics, swimming, and learning.
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