Citibank Student Loans

Citibank stopped offering student loans in 2010 when it sold its student loan division, The Student Loan Corporation. It sold most of its loans to Sallie Mae, with Discover and the Department of Education taking on the rest.

Citi purchased back a small portion of those loans for a short period before it finished servicing those remaining loans in 2017. Today, Citi does not hold or offer any student loans. In this review, we’ll explore what happened to Citi student loans, explain what current borrowers need to know, and review alternative lenders for those needing new loans.

Does Citibank offer student loans?

In the past, Citi had a portfolio of federal student loans originating under the Federal Family Education Loan (FFEL) program. It also offered private student loans known as CitiAssist loans. However, the company stopped originating CitiAssist loans at the beginning of 2008.

Citi exited the student loan space to streamline its business offerings, especially in the aftermath of the Great Recession and new rules about student loans enacted by Congress.

In 2010, Citibank’s student loan division was split. Sallie Mae took over $28 billion of Citi’s loans, most of which were federally backed student loans. The U.S. Department of Education assumed $4.7 billion in federal loans, and Discover took over $4.2 billion in private student loans.

In 2017, Citibank sold its remaining student loans to Firstmark.

What if I already have student loans from Citibank?

If your Citibank loans were sold, you still must pay them back. When Citibank sold its student loan portfolio, it sent letters to borrowers with details about their new servicers. These letters may have included the servicer’s contact information and instructions to continue making payments without interruption.

If you don’t remember who the current servicer is, you can find that information on your free credit report. These are listed in the account or installment account section and may show a loan type of “education” or “student loan.”

If you had federal student loans through Citibank, find your new loan servicer through the Federal Student Aid (FSA) website. You’ll need to log in with your FSA ID to see who the new servicer is.

Citi student loan servicing fined by the CFPB

In 2017, the Consumer Financial Protection Bureau (CFPB) fined Citi for illegal student loan servicing practices, such as misleading borrowers and charging inaccurate late fees. It was also accused of charging higher minimum payments and giving inaccurate information about tax deductions for student loan interest.

Citi’s loan servicing practices made it confusing and expensive for many borrowers to repay their loans. As a result, Citi had to pay a $2.75 million fine and return $3.75 million to affected borrowers, who were eligible to collect a refund ranging from $47 to $250.

Will I receive a refund from Citi?

If Citibank serviced your student loans between 2006 and 2015, then you may be eligible for a refund.

Borrowers who had loans serviced by Citi at the time of retribution should have seen a statement credit on their account. If the impacted loans were paid off or serviced by another company, Citi should have sent a refund check in the mail.

In short, if you were owed a refund, you should have already received it. For more details on the action against Citibank, check out the press release from the CFPB.

Alternatives to Citibank student loans

You can’t take out student loans with Citibank, but consider other student loan companies. Check out our picks for the best private student loans, or read the lender reviews below.

Lender	Rates	Term lengths
College Ave	4.07% – 16.69%	5, 8, 10, or 15 years
Sallie Mae	4.50% – 16.70%	5 – 15 years
Earnest	4.11% – 16.20%	5, 7, 10, 12, or 15 years
Ascent	4.09% – 16.08%	5, 7, 10, 12, or 15 years

College Ave – Best overall

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LendEDU rating: 5 out of 5

• Student loans for undergraduates, graduates, parents, and career training
• Choose your repayment term
• Get a decision in as little as 3 minutes

College Ave is our top choice for private student loans and is a terrific Citibank student loan alternative. It offers loans for undergraduate degrees, graduate degrees, career training, and parents of students. Payments are flexible, allowing you to choose your repayment terms and schedule.

These loans can cover up to 100% of the cost of college attendance. Rates are among the lowest available for fixed and variable APR. Specialized loans are also available for programs including MBA, dental, medical, and law school, plus other health professions.

Sallie Mae – Best for cosigners

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LendEDU rating: 4.8 out of 5

• Cosigner release after 12 months of consecutive on-time payments
• Student loans for undergraduates, graduates, and career training
• Get a decision within 15 minutes

Sallie Mae offers undergraduate and graduate student loans, as well as loans for career training programs. Borrowers have access to low interest rates and several in-school repayment options. Sallie Mae also lets potential borrowers with insufficient credit add a cosigner to strengthen their applications.

Salle Mae offers several repayment options, including deferred repayment, fixed repayment, and interest-only payments while you’re in school. It doesn’t charge origination fees, and loans can cover up to 100% of the cost of attendance. Cosigners can be released after 12 on-time payments.

Earnest – Best for no fees

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LendEDU rating: 4.7 out of 5

• Student loans for undergraduates, graduates, and parents
• Ability to skip one payment per year
• No origination, late payment, or application fees

Earnest is an online lender offering undergraduate and graduate student loans, as well as student loan refinancing. Borrowers can take out loans for undergraduate programs, grad school, MBAs, medical school, and law school. You can add a cosigner for lower rates and better approval odds.

Earnest also offers lower fixed rates for borrowers with a cosigner. Rates start at 4.11% with a cosigner (including 0.25% autopay discount). Earnest has a rate match discount and will give you a $100 Amazon gift card when your match is finalized.

Ascent – Best for eligibility

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LendEDU rating: 4.4 out of 5

• Cosigned and non-cosigned student loans for undergrad, grad, and career training students
• Get 1% cash back with proof of graduation
• Check your rate without affecting your credit

Ascent offers loans for undergraduate and graduate students and is one of the few student loan companies that doesn’t require a cosigner. It also offers loans for borrowers who have a cosigner and loans to pay for boot camps, which are career prep programs at specific schools.

Ascent features a variety of repayment plans and lets you choose the plan that works for you. Another unique feature is Ascent Rewards, which lets you earn cash back from popular retailers. You can use the cash for whatever you choose, including paying off your debt.

How to refinance Citibank student loans

If you have Citibank student loans, you may be able to refinance them with a new lender to lower your interest rate and monthly payment. Refinancing is typically available to borrowers with good credit and a steady track record of on-time payments.

Refinancing federal student loans converts them into private student loans. This will mean giving up benefits such as income-driven repayment plans and loan forgiveness programs. Consider this before refinancing federal student loans.

Here’s a quick look at how to refinance your student loans:

1. Check your credit score. It’s best to do this before refinancing. Many lenders require a FICO credit score of at least 670 to refinance.
2. Compare lenders. Research and compare lenders that offer student loan refinancing, paying attention to rates and repayment terms.
3. Prequalify. While not required, prequalifying will let you see your potential rates and terms without affecting your credit score.
4. Apply. Choose the lender with the best offer and submit an application. You may need documents such as proof of identification, proof of employment, and proof of residency.
5. Review and finalize. If approved for refinancing, review the rates, terms, and any fees. If you don’t find any issues, sign the offer to finalize it.
6. Make payments. After the lender pays off your old loan, you’ll start making payments on the new one.

If you’re interested in refinancing, use our guide to the best student loan refinance lenders, or learn more with our guide to deciding whether to refinance your student loans.

Recap: Citibank student loan alternatives

Lender	Rates
College Ave	4.07% – 16.69%
Sallie Mae	4.50% – 16.70%
Earnest	4.11% – 16.20%
Ascent	4.09% – 16.08%