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Citibank Student Loans

Annie of Park Forest, IL June 4, 2009

I am currently in School I have been attempting to pay the interest on my student loans which total about S132,000. Now I was told that I could pay the interest while in school so that it would not accumulate. So far I have paid over 10,000 that I thought was going towards the interest, but the interest remains the same with every 150 to 200 I pay on both loans. Sometimes 2 monthly.

The 3,162.63 due on both loans are not going down but remaining the same. So I ask where is the money I have been paying going. I was told that it is just like a house payment. I still don't understand because with my house payment eventhough 160 is placed on the principle the the rest in escrow. I can see the principle coming down, but not with the loans. The numbers are unchanges with each payment made. I am still in school as I mentioned so why am I not seeing a decrease in at least the interest numbers?

Raisa of Miami, FL May 22, 2009

The lost the first check they sent to me to pay for my bar studies. The second check (a reissued check)they sent one week after my bar classes commenced. I took my check to a citibank branch and they refused to cash it, even though it was from their bank. My bank Suntrust said they would put a one week hold on the check so in order to be able to pay for my bar application (which was now 275 dollars more because it after deadline)

I was forced to go to a check cashing store and pay 750.00 plus drive to 5 different check cashing locations to get the full amount of the loan because they dont carry it all at once. I was also emotionally distressed and had a nervous breakdown in the process begging and pleading with Citibank over the phone only to get hung up on twice. I am now 1000.00 in the hole thanks to Citibank's encompetence and after going to the doctor now have ulcer that is bleeding. This people will never get my business again. I would definitely like to file a claim against them.

Kate of Town, NY April 2, 2009

I had a problem with Citibank a while ago - I have multiple student loans which are consolidated into 2 larger loans, and then a lower principal but higher interest rate private loan. The student loans are on deferrment right now, but Im trying to pay down the private loan, which I can't defer. When I would pay over minimum payment on my private loan (no matter how specific my instructions were on my check and payment coupon, like writing apply only to Loan #X, do not apply to interest on any other loan) they would take any extra and apply to the lower interest on my other loan, which I'm trying to just leave alone, chilling at their low interest rate.

We did this dance for about 3 months where I would call, complain and they would re-distribute the funds the way I wanted, while saying there was no solution. UNTIL I TALKED TO THE MAGIC CUSTOMER SERVICE PERSON who CRACKED and told me about the exceptions payment adress - a different address to which you can send your payments at which, allegedly a real person opens all the mail - that was really her description. I've been sending my payments there for a year and now they always go exactly where I want them to go.

Jessica of Hartford, CT January 27, 2009

I have been paying my student loans from Citibank since 2004. When I pay online, I am given the option of putting my payment towards the principal. when I select that option, I notice that it NEVER goes to the principal, it only defers my next payment. The website clearly states and encourages people to apply extra to the principal except you can't actually do it.

I've spoken to several representatives and I've been told 1) send a check or payment electronically the day before my payment is due otherwise the system won't apply it to the principal and then 2) that the only way I can apply extra towards the principal is if I send a check to a totally seperate dept. I am upset that they have been LYING and MISLEADING.

I have consistently paid extra each month and I thought it was going towards principal. I work very hard as a social worker and do not make a ton of and have made a conscious effort to pay off my loans as quickly as I can to save me money. Little did I know, they were only deferring my payment. We're talking about thousands of dollars that only deferred payment. So wrong! Illegal!

Victor of Phoenix, AZ January 16, 2009

I have been paying on my student loans for 5 years now, 307.00 a month and sometimes more. Still to this day, the balance has not gone down. In fact it has gone up. I see a lot of people having problems with Citibank. I was told my loan consolidated on a 10 year plan but find out it is a 20 year. I wish someone would take this greedy giant down.

It seems that I am working to give Citibank money. My initial loan for school was 25000, why is it 32000 and going up? They explained that I need to pay 1000.00 a month to see a change in the balance.

Melinda of Chicago, IL January 13, 2009

My loan amounts constantly change every month. The customer service reps barely know what's going on. I was told on January 12, 2009 that I am supposed to pay about 265 per month for three private loans when I get statements saying that I owe over 400 a month. Some of the statements are interest statements, which end up being monthly statements without my knowledge. I remember being told that a statement I had received was an interest statement. Weeks later, I had people rudely calling my house telling me that I was two months past due on paying.

The amounts change every month. Payments are ballooning every month and with cash being limited these days, I cannot make payments of 400+...or is it 265? All of my statements don't tell me the truth. The customer service representatives are barely helpful. So many people tell me so many things without options of helping. In January 2009, I cannot take out a consolidation loan because they don't do those anymore. I need to apply for a new repayment plan. I can't get the Extended Repayment Plan at the moment. It's too much.

Irate phone calls received. I don't have 400 lying around my house to pay back student loans every month. That's not even a car note. I'm not getting any assistance from Citibank. I have two loans with an interest rate over 10% even though interest rates have dropped. I can't get a lower interest rate unless I've been paying on the loan for 48 months, a loan that has just come out of forbearance. Can't consolidate because they're not doing that at the moment. Citibank doesn't want to offer any real assistance that will help a person. Something has to be done here.

Terry of San Diego, CA December 31, 2008

I have also taken out a Student loan. I have been paying for over 10 years and I owe more now then when I took out the loan. I understand why people are not paying off their loans, because there is no paying them off. They have increased the interest at least 3 times since I've taken out the loan. My payment have almost doubled. I don't see the light at the end. I don't think it is fair for those of us that try to pay our bills should have to help pay for those that don't.

The additional interest never allows my balance to go down. They should not be allowed to increase the rate. It should have been locked in at one rate and one rate only.

Amy of Santa Monica, CA December 6, 2008

Misapplying my payments. Mismanaging my loans and charging me late fees and sending me to collections when I pay MORE than I am supposed to every month. For total incompetence. I have had to call them numerous times and they still mess up. They even had collections call me at WORK when it was THEIR fault.

Credit rating is jeopardized and overall loss of time, money and emotional trauma. I think they are ripping me and other people off. They are total scammers.

Armando of San Diego, CA November 28, 2008

I've repeatedly asked Citibank in writing for an account history over the past seven years because I've religiously made additional payments to principal and feel they are not applying my additional money correctly. They also take three to four days to apply an online payment when every other banking institution I've dealt with takes two days maximum.

I've contacted the ombudsman's office in writing twice since having an agreement with Citibank. I find it rather ironic that the ombudsman's office is located in the offices of Citibank themselves. This office is supposed to be representing the citizens of this country, not the corporation. The representatives at the ombudman's office have never resolved any of my complaints and have only asked Citibank for an account history of my loans without plugging the payments and numbers into a computer program to see if additional principal is being applied correctly. Basically, the ombudsman's office re-sends an exact copy of the account history I receive from Citibank.

Additionally, every time Citibank has sent me an account history, they refuse to put their name on the multiple pages printed out showing how my payments and additional interest is applied. I've asked them to send a printout with the company's name or letterhead at the top of every page. They're supposed to be such a large corporation, but when they send an account history, it looks like something printed from a mom-and-pop operation. Somebody needs to start holding this corporation accountable for their actions, especially the Citibank customer service representatives and the reps in the ombudsman's office.

I truly believe my account balance is much less than they're showing on their records.

K.o. of Minneapolis, MN October 31, 2008

Just wanted to warn any person that is looking at taking out a school loan, to STAY AWAY FROM CITIBANK. The customer service was the worst we have ever experienced. Have taken out several college loans through other banks for our other children and had zero issues. Tried to take a loan out last week and it is suppose to take minutes to process - ours still is not approved and it has been an entire week (due to no fault of ours). Reps do not call back when they say they will.

We have called them 8 times in the past week to get the process completed, no one seems to know the hangup. Each customer service rep instructs me to do something different; they have no idea what they are talking about! Today we were told this is highly unusual...that it would take this long... No kidding. We are canceling our loan application with them and going with another lender. Never have we had issues with loans in the past. (Also, the complaints we discovered and read this week on this website reinforced that we do NOT want to take a loan out with this company! -- so we say a big 'thank you' to those that have posted their stories on this site) Borrowers, STAY AWAY!!!

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