Federal Consolidation Loan FAQ

What is a Citibank Federal Consolidation Loan?

A Citibank Federal Consolidation Loan combines several existing federal student loans into one new loan. You can enjoy the convenience of lower monthly payments, a single fixed interest rate and one monthly payment.

What is the interest rate?

The interest rate for a Federal Consolidation Loan is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of one percent. This rate is fixed for the life of the loan and cannot exceed 8.25%. You may be able to take advantage of a rate as low as 5.375%*. The interest rate on a Federal Consolidation Loan is set according to federal law.

How can I consolidate my loan with the grace rate?

You have the option of consolidating your loan during your grace period and taking advantage of a rate as low as 3.50%. It is important to remember that you must indicate the month and year of your grace end date in #26 on the Consolidation Loan application if you would like to hold the processing of your Consolidation Loan until the end of your six-month grace period. The rates in effect at the time that you apply for your Consolidation Loan will be used in the weighted average calculation to determine the rate on your Consolidated Loan.

Will the reduced interest rate that I am receiving due to borrower benefits on my existing loans be used to calculate the fixed interest rate on my new Consolidation Loan?

No. Interest rate reductions received as borrower benefits on existing loans will not be considered when determining the applicable interest rate on your consolidation loan. For example, if the applicable rate on your existing loans is 6.80%, but you were receiving interest rate reductions as a borrower benefit that reduced the interest rate to 5.80%, the interest rate used to calculate your new Consolidation Loan will be 6.80%.

How can I find out what my Consolidation Loan payment will be?

To estimate what your payments and total amount of interest paid may look like, input various interest rates into our Loan Consolidation Calculator. After your application has been approved, the disclosure and monthly account statement will include your exact payment amount and interest rate.

How do I know if I am eligible?

If all of your loans are in grace, repayment or in a deferment/forbearance, you may be eligible for a Citibank Federal Consolidation Loan. Your loans that are in an in-school status cannot be consolidated until you graduate or leave school. If you have defaulted on any of your loans, you need to make satisfactory payment arrangements with the current holder and provide evidence of that to Citibank. Loans subject to a judgment or wage garnishment are not eligible for consolidation.

Can I consolidate my loans while I am attending school?

If you are currently a full- or half-time student, you can apply for a Consolidation Loan upon graduation. For loans disbursed prior to July 1, 2006, the interest rate during the grace period is 0.60% lower than the Stafford repayment rate. By consolidating while you are in grace, you will have the opportunity to secure a lower interest rate and start paying down your student loans.

Can I get an in-school deferment on my Consolidation Loan?

If you are attending school at least half-time you will be eligible for an in-school deferment on your Consolidation Loan. Keep in mind that you will need to begin repaying your Consolidation Loan immediately upon graduating, withdrawing, or dropping to less than half-time enrollment status. Citibank offers a special Consolidation Loan four-month Lender Option forbearance that may be considered to help you ease into repayment.

How do I apply for a Consolidation Loan?

Apply today to lock in a low fixed interest rate. Citibank offers you three ways to apply for a Federal Consolidation Loan:
Apply & Sign OnlineApply & sign online using Citibank’s Online Federal Consolidation Loan Application. Let our online application guide you through the process. It’s fast, secure and easy!
Download an Application (PDF ~176KB)Complete instructions on how to fill out and where to send your application are included. You must have the Adobe Acrobat Reader Software, Version 3.0 or greater, installed on your computer in order to view and print the application.
Request an application be sent to you by mailUse our online form to request an application be sent to you by mail.
What is the maximum/minimum loan limit for a Federal Consolidation Loan?

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

How do I check the status of my Consolidation Loan Application?

To check the status of a Consolidation Loan Application, please call our Customer Service Department at 1-800-967-2400, Monday - Friday, 8:00 a.m. to 11:00 p.m. Eastern Time to speak with a Citibank Customer Service Representative. TDD users can call toll-free at 1-800-846-1298.

How much is this going to cost?

There are no application or processing fees. And, there is no penalty for early repayment.

What if I forget to consolidate one of my eligible student loans?

You can add an eligible student loan that you forgot to consolidate into your new Federal Consolidation Loan if the loan is added within 180 days of the original date of your new Consolidation Loan. If more than 180 days have passed, you’ll need to complete a new Federal Consolidation Loan application.

If I have already consolidated my student loans, can I enter into a new Consolidation Loan?

Once you have consolidated your student loans, you can only enter into a new Consolidation Loan if you either have an eligible student loan that was never consolidated or you get a new eligible student loan after the date of the original consolidation.

Once my student loans are consolidated, is there a way to “unconsolidated” them?

No. The original student loans are paid in full and cannot be “unconsolidated”. Once consolidation begins, there is no way to reverse the process.

Should I keep making payments on my student loans while I’m waiting for my Consolidation Loan to be processed?

Yes, continue to make all regular payments. You will be notified by mail when your Federal Consolidation Loan has been completed. You will receive a repayment schedule at the time of disclosure.

How long with it take for my application to be processed?

Depending on the number and type of loans you currently have, it takes approximately 6 to 8 weeks for the Consolidation Loan application to be processed.

When will I have to make my first payment?

It’s usually due within 45 days after the consolidation has been completed. You will receive a disclosure and a repayment schedule which identifies your payment due date.

Are there any pre-payment penalties?

There are no pre-payment penalties.

Where can I find my student loan information for the Consolidation Application?

If you are in repayment, look on your most recent statement. If you are in grace or in a deferment/forbearance, look on your disclosure statements that were sent to you when you obtained your loans. These items should provide you with an account number, balance and interest rate. If you have some of your loans through Citibank, you can check those loans online. You can also visit www.nslds.ed.gov.

Can I consolidate with Citibank even if I have not borrowed any of my student loans with them?

Yes, the federal government recently passed a law that now allows borrowers to consolidate their student loans with any eligible FFELP lender. This means that whether you are a prior Citibank student loan borrower or not, you can now consolidate your eligible loans with Citibank and receive our industry-leading benefits and services.

Can I also consolidate my private student loans?

Yes. Although private student loans cannot be included in a Federal Consolidation Loan, Citibank also offers a Private Consolidation Loan. Learn more…