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Can anyone provide me with the information on SC and Citibank US student loans?

I have been looking for information on various student loans that are available in the US. I have managed to get information on most of the loans I was exploring but have had no success with the SC student loan and the Citibank student loans.

I am asking for advice on these two US student loans so that I can be able to make the best choice. The Citibank loan has been getting negative press lately. However, I seek a detailed review from someone who has experience with them.

Samantha Stevenson

in Student Loans

1 answer

1 answer

Heather Maxwell on March 27, 2018

Allow me to start with Citibank students loans. Barely two months ago, the Consumer Financial Protection Bureau (CFPB) released a statement saying that it had taken appropriate sanctions against Citibank for alleged massive failures and irregularities in the loan servicing procedure undertaken by this bank. This resulted in suffering among the borrowers.

A publicly availed document provided by the Consumer Finance, the CFPB conclude that Citibank gave wrong and misleading information to loan borrowers that made them think they did not qualify for deductions on tax on the interest they paid for their student loans.

Furthermore, Citibank is said to have levied late repayment charges and added some more interest on the loan balances of their customers. This was despite them being in school and therefore qualified for deferment of school loan repayments.

It is further alleged that by the CFPB that Citibank gave misdirecting information to borrowers of the US student loan concerning their monthly bills. It failed to allow their clients to release their co-signers from the obligation of repaying their loans.  This therefore resulted in a more costly and inefficient repayment process.

For the loans that were being serviced by Citibank, it was discovered  that the bank misreported the information on the tax deduction, they overstated the monthly repayments, sent wrong request to avoid cosigner releases and did not refund late fees and interest fees that were allocated by mistake.   

Citibank is said to deduct up to $2,500 as interest in student loans every year. Borrowers here are not informed whenever they are eligible for tax deduction, thus they end up missing out from the tax breaks offered.

The SC students loan is a student loan that is provided by State of South Carolina. This is the only non-profit lender for education in the state. It is committed making higher learning accessible to people in South Carolina. This company was started back in 1973 with the noble intention of ensuring that people who want to get an education get to do so.

The lending design offered by this company is one of a kind. It entails encouraging you borrow as less as possible. The loan should just be within your means. It offers the Palmetto Loan (PAL), which has very low rates. They get to a paltry 3.74%. This is not only a loan that helps you go to school, but also a loan with your future at heart.

Tad Frazier2 years ago

Another fabulous aspect of the SC student loan is that you get to sign a promissory note. This ensures that you really understand the various facets of your loan. By giving you as much information as possible on your loan, the possibility of confusion during the application process is rooted out.

When you get pre-approved, all the terms and conditions on your loan are provided to you. After this, is when you are required to sign the promissory note. The money is then wired to your school.  

Additionally, SCSL allows you to pay the interest after school. You can also delay making payments on your interest. If you are a creditworthy borrower or a cosigner you qualify for an origination charge that is as low as 1%.

Borrowers of the PAL loan can get finances to meet their cost of attendance but without any financial help. Funds received cater for educational fees.

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