Friday, February 6, 2009

Citibank Student Loans - Why So Popular?

Students who find themselves in a less than ideal financial situation are able to use student loans to help them be able to afford the increasingly higher costs involved in getting a college education. These loans are designed to be easy to get and pay off.

The wide variety of student loans now available are each set up with special features that are supposed to make the loans more desirable to students than other competing loans. Amongst all student loans, two of the most popular are the Citibank student loan and the Sallie Mae Signature loan.

Citibank Student Loan - The Advantages

The grand majority of student loans that can be obtained in order to offset the costs that are associated with college studies are secure loans. A secure loan is a loan that is guaranteed by means of a mortgage and/or your parents' personal guarantee. Secure loans require a liability that is valued at at least three times the amount of the loan that is being applied for.

Citibank student loans have become extremely popular amongst college students because they are not secure loans. Citibank loans do not have to be guaranteed by means of a mortgage or personal guarantee.

This special feature of Citibank and Sallie Mae Signature loans is quite attractive but it comes at a price; these loans come with extremely high interest rates. Since the companies that are willing to offer an unsecured loan to students are taking a big risk, they require that you pay an exceptionally high interest rate.

The Federal Student Aid Program, which is controlled by the US Department of Education, also offers unsecure student loans. These loans are easier to get and are charged less interest than unsecure loans offered by other financial institutions.

If you want to get an unsecure student loan, doing so through the US government is probably the best choice so that you do not have to pay an exorbitant interest rate. Make sure that you can successfully pay off any loan that you apply for.

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