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Citibank Student Loans

Suzie of Sacramento, CA July 10, 2009

I have two student loans consolidated into one through Citibank. I am now in a position to make substantial payments in order to pay the loans off quickly. I made two extra payments. The first payment I had to call and ask that the payment be applied to prinicpal (even though I had written it on the check and included a letter). The second payment I had to call again and ask that the funds be applied to principal (that check cleared my bank account on July 3rd)and it still has not been applied to my account. I was told by a customer service rep that I had to send extra payments to a different address and be very specific about how I wanted the money applied. It took three emails and two phone calls to get the "Payment Exception" address.

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

Kate of Town NY (04/02/09)
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

Jessica of Hartford CT (01/27/09)
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

Victor of Phoenix AZ (01/16/09)
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

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