Loan Consolidation

Reduce your monthly payment by up to 50% by consolidating all of your loans into one. Not only will you have lower payments, but you will only have to write one check to one lender every month.

Citibank can consolidate all your eligible student loans, including Federal Direct Student Loans (Direct Lending), eliminating the need to deal with multiple lenders and multiple due dates.

There is no limit to the dollar amount you can consolidate.

The Advantages of Loan Consolidation:

By extending the repayment period, you can reduce your monthly payment. Lowering your monthly payments to fit your budget may help avoid late payments. If you are trying to buy a home, your monthly expenses are carefully considered when applying for a mortgage. Consolidation may make a considerable difference.
You will have only one monthly payment if you have loans with more than one guarantor or lender, Loan Consolidation allows you to make one monthly payment, instead of several minimum payments to different lenders.
For Loan Consolidation applications received on or after October 1, 1998, the interest rate will be the weighted average of the interest rates on the existing loans rounded up to the nearest 1/8% or 8.25%, whichever is lower.

The Disadvantages of Loan Consolidation:

You will be making payments for a longer period of time by extending the repayment term of the loan and will pay more interest over the life of your loan. However, should you wish to repay the loan early, Citibank will not charge a penalty.
Depending on the total indebtedness of your loans, you may be paying it off for up to 30 years. Your actual repayment term will depend totally on the payoff balance of your student loans. However, you can repay the loan earlier with no penalties.
Consolidating your loans may terminate any unused deferment or forbearance time allowed on those loans.
It's important to remember that once your loans have been consolidated, it can't be reversed. The underlying loans have been paid off and no longer exist.

Consolidation Loans are for federal student loans. They are not for credit cards, home, car, boat, or personal loans, and any other debt.

Loans that are eligible for consolidation:

All Federal Direct Student Loans (Direct Lending)
Subsidized federal Stafford Loans, formerly GSL loans
Unsubsidized federal Stafford Loans
Federal Perkins Loans, formerly National Defense/Direct Student Loans (NDSL)
Health Professions Student Loans
Health Education Assistance Loans
Federally Insured Student Loans
Federal PLUS (Parent) Loans
Federal Consolidation Loans, Subsidized and Unsubsidized
Nursing Student Loans on or after 10/20/94
Federal Supplemental Loans for Students, formerly Auxiliary Loans to Assist Students (ALAS) or
PLUS

Repayment Terms

The Citibank Federal Consolidation Loan offers you a repayment term of up to 30 years, giving you a lower payment amount over a longer period of time.

Your repayment period is based upon the total current balance of your student loans, and the total balance of the student loans you want to consolidate.

When you extend the repayment term of any loan, the total amount of interest paid over the life of the loan will increase.

However, lower payments could be just what you need. And remember, there's no penalty for early repayment on a Citibank Federal Consolidation Loan.