So, all my fellow readers out there…I bring you the final results for the July/August Student Loan Poll which asked you “Students borrow more on Student Loan than required – Is that true?’
The results were as expected, 76% voters were in favor while 24% did not agree to it.

I bring you this post to justify the results….

What are these Student Loans?

Growing cost of education makes it impossible to fund the expenses out of savings. Hence students resort to taking loans for their education. Keeping in mind the rising cost both government and private lenders offer a variety of loans to students at nominal rates.

Why do they need a Student Loan when other financial aids such as Scholarships and Grants are available?

Scholarships and Grants require a particular accomplishment or a unique talent or a prescribed financial condition to be availed. Not all of us fit into such requirements. You can quote a number of reasons why they are not in a position to go for scholarships or grants. Loans are available to all students irrespective of their talent, course of study, financial and social status. The only requirement they have, that too in the case of private loans is a good credit score.

What is the purpose of Student Loan?

Student Loan cater to the student’s requirement to fund his education which is otherwise not affordable and which he promises to repayment after completing his studies and into a decent employment.

Are Student Loan used for the said purpose?

Yes, they are used for the purpose of their education. As one would say ‘every rule has its exception’. There could be some miscreants who misuse the loan for purposes other than studies.

Why do students end up taking more loans?

In the scenario of growing cost and quality of education they need be prepared for unexpected expenses that come in the way of proceeding with the education. Applying for a Student Loan and realizing the amount takes a long time, which makes him apply for higher amounts to meet the unexpected.

Huge Student Loan liability ahead

As students they are hardly aware of the consequences of huge loans and their respective implications in future. Proper care and caution are hardly exercised in cases where no proper guidance is taken while applying for educational loan. This makes them indebted even before they earn.

Is the system perfect enough?

Though absolute care is taken at every end of the process to ensure that Student Loan serves the purpose for which it is issued, intentional violation sometimes cannot be stopped

Why people think more loans are being taken?

It is only after completing their studies that students understand their position and liability ahead. Their inability to meet the loan commitment and the unending repayment saga leaves them puzzled wondering at the cost of education and the related liability.

How do we substantiate?

We can substantiate the fact that students take more loans than required, by analyzing the repayment structure and timing and the resulting pressures undergone by them for further loans in order to keep up their credit score and reduce their liability. This analysis only tells us that the mistake lies at the start of the process of taking more loans than required.

Are you looking for a Student Loan offered by Citibank? If yes, go ahead and have a glimpse of it.

Benefits

While it is obvious that any student would opt for a Federal Loan given the advantages, still you need an additional support for the shortfall in federal funding. This is when Citi Bank presents a private student loan offer. Your needs varying from books, students and school related expenses are covered under this loan.

• You stand to gain on the reduction in interest rates for consecutive payments and auto debit plans.
• No repayment worry while you are at school, the repayment liability would tentatively start close to 9 months after graduation or leaving the school.
• Loans are extended not only for the current year, but also for previous year expenses.
• Forget about the waiting time, apply and get a credit response within minutes.
• Get the advantage of paying the interest on Citi Assist student loan and getting a tax deduction for the same.
• You do not have to run around to know your loan approval and disbursement status. Online access and management enables you to know and make payments online.
• Do not forget that you are dealing with a bank that is best known for its 24*7 customer service.

Eligibility

Have you enrolled for a graduate study program? Have you completed at least half the study program? You are very much eligible to apply for a Citi Bank Students Loan. Also ensure you are at least 18 years of age (19 in Alabama and Nebraska and 21 in Mississippi and Puerto Rico). Being a Private Loan you may apply on your own or with your credit worthy co-signer. The strength of your credit report decides the loan approval.

Rates, Terms and Fees

Interest rates are as low as 4.50%. Citi Bank Annual Percentage Rate (APR) is indexed to the Prime Rate. Borrow the amount required to fully fund your educational expense taking into account the Federal support. Yes, it does need a certification from your school for the requested amount.

You have 20 long years for repaying your loan and the liability starts only after 9 months after the completion of your graduation. The fee charged depends on your credit worthiness.

Citi Bank also offers loans which are specific to a course of study, bearing few variations in the rate of interest and repayment period.