Why The Citibank Student Loan Is So Popular Among Students?
Student loans are specially formulated to aid economically challenged students complete their education. This is why these loans are formulated in such a manner that the students would be able to avail of the facility with the least trouble.
There are many types of student loans available 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 Availing Of A Citibank Student Loan
There are many financial institutions which 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 student loan is owed to the fact that this institution offers unsecured student loans. This means that when you apply for a Citibank student 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, note that the interest charged by Citibank as well as Sallie Mae Signature, i.e. it is enormous. This is because when these financial institutions offer you this loan they expose themselves to a very 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 easy to avail 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, which is easy to get; go for the private loans which would blow you out with the huge interest they would charge. Beware - never take on anything that could swallow you, so only avail of loans that you could repay.
This is particularly true about taking loans, 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 go through college. This is because such students are aware of the responsibility that comes along with that loan and are confident that all the conditions would be met.
