Plenty of companies offer help to struggling students. Citibank student loans seem ideal for those families hoping to work with a big company with a large portfolio. If startups make you nervous, Citibank could make you happy.
There’s just one problem: Citibank student loans no longer exist.
Why Are There No Citibank Student Loans?
Citibank student loans were once plentiful; you could easily get private student loans through the company. Citibank also serviced plenty of federal loans, so your payment checks may have been sent directly to Citibank instead of the U.S. Department of Education (DOE).
All of that changed in 2010 when Citibank sold the majority of its student loan portfolio to competitor Discover. Citibank stopped offering college loans at that time, but it continued to service some loans.
In 2017, things changed again. Citibank stopped servicing all student loans and the remaining debt was sold to Firstmark Services. That put an end to all Citibank student loan services.
If you had Citibank student loans and didn’t pay off the balance, don’t breathe a sigh of relief just yet. Your debt hasn’t been forgiven. You’ll just need to pay to a different loan servicing company.
If you’re not sure where to send federal student loan payments:
- Head to the NSLDS Student Access website.
- Click on “financial aid review.”
- Log on with your FAFSA identification.
You’ll see loan servicing information clearly listed.
If you’re not sure where to send your private student loan payments, contact the bank that provided your loan. They can point you in the right direction.
Can You Use Another Citibank Loan?
Citibank student loans may no longer be available, but the company is still in business. Scroll through the Citibank website and you’ll see plenty of loan options that seem appealing. Unfortunately, you can’t use these loans to pay off student debt.
Loans with Citibank come with interest rates ranging from 7.99% to 23.99% APR, and you can borrow up to $50,000. You can make up to 60 monthly payments to pay back the balance, and you can apply for a loan in person at any Citibank branch.
But look into the fine print of these loans, and you’ll see that you can’t use them to pay for postsecondary education.
Step back, and this restriction makes sense. When you borrow money to pay for your education, you have no collateral. If you’re unable to pay back your student loan balance, officials can’t take your degree away or foreclose on your career, so they lose money.
Risks like these are, in part, why so few banks get into the student loan market. Student loans work in interesting and unique ways, and they come with plenty of risks for banks. They’d rather use that effort to support traditional loans while leaving education loans to companies that focus on those products.
Find Citibank Student Loan Alternatives
If you were hoping to work with Citibank to pay for college, you might be disappointed. Don’t worry: Many companies offer student loan programs, including loans made for both undergraduate and graduate students.
We review those loan providers on this website, and we help you make smart decisions about your financial future. We encourage you to browse and search for the loan that’s right for you.