Citibank Student Loan
Why is the Citibank Student Loan So Popular?
It is specially formulated to aid economically challenged students to complete their education. This is why these loans are formulated in such a way that the students should be able to qualify for them with the least trouble.
There are many types of student loans today, each vying with one another to provide better features. Two among the most popular ones are the Citibank student loan and the Sallie Mae Signature loans.
The Advantages Of Unsecured Loans
Many financial institutions give loans to students for further studies on conditions that vary widely. However, there is one thing in common to most of them – i.e. they are secured loans.
By 'secured loans' it is meant that these loans would need some type of mortgage or personal guarantee of your parents or both.
The liability which would secure the loan with the bank would have to be at least three times the amount of the loan requested.
The popularity of Citibank's loan is owed to the fact that this institution offers unsecured student loans.
This means that when you apply for their loan you need not offer any mortgage or guarantee for it. However, before you think that this is the best thing you have heard yet, make note of the interest charged by Citibank as well as Sallie Mae Signature. It is enormous!
The reason is that when these financial institutions offer you this loan they expose themselves to high risk – the risk that you might not get a proper job on time to start repaying.
Other institutions which would offer you an unsecured loan are the Federal Government, through their US Department of Education's Federal Student Aid Program. The Federal loans, unlike the private bank ones, are easier to qualify for and come at a much lower rate of interest than that which is offered by private banks.
It is best therefore to apply first through Government, where it is easier to qualify. Your second choice or let's say the choice of last resort are the loans which would rake you over the coals with their huge interest rates.
Beware - never take on anything that could swallow you, so only take on loans that you have a reasonable chance to repay.
This is true about taking on any type of loans. Loans can be a great boon if managed well and conscientiously. Loans such as Citibank student loan are great for anyone who simply has to get through college.
Such students are aware of the responsibility that comes along with that loan and are confident that all the conditions would be met.
Citibank Student Loan