CitiAssist Student Loan: Benefits, Eligibility, Payment and Postponement of Payment
The CitiAssist Student Loan is only one of the private education loans that can supplement federal student loans like the Stafford Loan. However, the CitiAssist Student Loan is not for everyone.
Below are information about the eligibility and requirements as well as the payment terms and benefits.
CitiAssist Student Loan Eligibility
The CitiAssist Student Loan has specific eligibility requirements.
First, the applicant should be 18 years old. The minimum age in Nebraska and Alabama is 19 and 21 in Puerto Rico and Mississippi.
Second, the applicant needs to be enrolled full time or part time.
One good thing about the CitiAssist Student Loan is that co-signers are not required. However, having a co-signer definitely helps in getting your loan application approved. It can also help you to further lower the interest rate.
CitiAssist Student Loan Benefits
One of the main benefits of CitiAssist Student Loan is it loanable amount that is way higher than other student loans. In fact, it is possible to borrow an amount that is equal to your education’s total cost after deducting the amount that you will get from other financial aids. Plus, there is no loan fee collected from the applicants.
The auto-debit payment program is another benefit of the CitiAssist Loan. The interest rate ranges from 3.5 to 9 percent but the auto-debit payment program can reduce it by 0.25 percent.
CitiAssist student loan originated by SLC through Citibank, N.A. The loan program requires that borrowers meet specific credit standards, such as minimum credit scores, a minimum monthly income, and debt burden levels within specified limits.
CitiAssist offers private education loans for graduate students enrolled in participating schools.
In addition to borrower eligibility requirements, SLC’s credit department approves schools eligible for the CitiAssist program based on proprietary selection criteria.
The loans are risk-based priced to the prime rate plus a margin based on a borrower’s credit and the school attended by the borrower.
For those with good credit, Citi offers respectable interest rates, though fees can be substantial for students with less-than-stellar credit. Additionally, interest rate reductions for automatic withdraw are available. The maximum amount possible is $150,000.
CitiAssist Student Loan Payment
Every CitiAssist Student Loan review considers the payment terms flexible and easy on the students. The principal payments are automatically deferred until your graduation and during the grace period.
The repayment period, which can be as long as 15 years, will start after the 6-month grace period or if you leave or drop out from school.
Paying the interest while in school is only optional. If you opt not to pay the interest while studying, it will be added to the principal loan amounts.
You should also be aware of the consequences of failing to make CitiAssist Student Loan payment as well as failing to pay on time. For late payments, you can expect that late payment charges.
You can also be considered as delinquent. Your case may be reported to a credit bureau, too. Not making payments for months is worse. You will be on a Student Loan Default. If you have a co-signer, he or she may also be held responsible. Both of you can expect to deal with a collection agency and be reported to credit bureaus. Most loan default cases also lead to wage garnishment.
To avoid late payments, you can ask for a postponement through forbearance or deferment. You will not be required to pay immediately after the grace period when you choose deferment or forbearance but only those who are experiencing financial difficulties such as unemployment can qualify.
Unfortunately, the interests keep on accumulating even if you ask for a deferment or forbearance. The government will pay them if you are on a subsidized loan.
Paying the interest during the deferment or forbearance period is optional but it is better to pay these interests before the said period ends if you do not want it to be lumped together with the principal loan.
