Citibank Loans for Students: What Most People Get Wrong

You’re sitting there with a tuition bill that looks like a phone number, and you remember hearing that Citibank is one of the biggest banks in the world. Naturally, you think, "They must have something for me." You search for citibank loans for students hoping for a sleek application and a decent interest rate.

Here is the cold, hard truth: Citibank does not offer student loans anymore.

It’s a bit of a shock, honestly. If you go to their website today, you’ll see plenty of talk about "financial pathways" and "wealth management," but the actual "CitiAssist" loans that your older cousins or parents might have used are long gone. They haven't accepted a new student loan application since 2012.

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The Ghost of CitiAssist

Back in the day, Citibank was a titan in the education space. They had the CitiAssist program, which covered everything from undergraduate degrees to specialized health profession loans and even Bar Exam study costs. They weren't just a lender; they were a massive servicer for federal loans too.

Then the 2008 financial crisis happened. By 2010, the landscape changed. Citibank sold the bulk of its student loan business to Discover Bank. They tried to hang on to the servicing side for a few years, but that didn't go great either.

By 2017, they officially threw in the towel. They sold their remaining servicing rights to Firstmark Services. If you actually have an old Citibank loan from a decade ago, you aren't even paying Citi anymore; you're likely sending those checks to Firstmark.

It’s a weird situation. You see "Citibank" and "Student Loans" in Google results because of their legacy, but the actual product is a phantom.

Why You Can’t Just Use a "Regular" Citi Loan

Some people get the clever idea to just take out a Citibank Personal Loan to pay for school.

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Don't.

First off, Citibank's personal loans (which go up to $30,000) specifically forbid being used for postsecondary education expenses in the fine print. It’s a compliance thing. Banks treat student debt differently because there’s no collateral. They can't repossess your brain if you stop paying for your Sociology degree.

Second, the math is terrible. A personal loan usually requires you to start paying it back immediately. Most students need a "grace period" while they're actually in class. Plus, personal loan interest rates—which can spike up to 24%—will absolutely melt your future finances compared to dedicated student lending products.

What to Do Instead of Searching for Citibank

Since citibank loans for students aren't an option in 2026, you have to pivot. The market has shifted toward specialized "fintech" lenders and a few remaining traditional banks that still have the stomach for education debt.

If you’ve already exhausted your FAFSA and federal subsidized options (which you should always do first), here are the actual players in the game right now:

• Sallie Mae: They’re the "old guard" that stayed in the game when Citi left. They cover 100% of school-certified costs and have specific products for career training and graduate school.
• College Ave: This is basically the modern version of what student lending should be. You can pick your repayment term (5, 10, 15 years) and decide if you want to pay $25 a month while in school or defer it entirely.
• Earnest: Known for their "skip-a-payment" feature. They’re great if you have a solid cosigner because they offer some of the most competitive variable rates on the market.
• Citizens Bank: Not to be confused with Citibank! Citizens (the one with the green logo) is very active in the student space and even offers multi-year approval so you don't have to re-apply every single semester.

The Reality Check on Interest Rates

In the current 2026 market, "low" is a relative term. You’re likely looking at fixed rates starting around 4.50% if you have a cosigner with a credit score north of 750. If you’re flying solo without a credit history, expect those rates to jump into the double digits.

One thing people consistently miss: the "Autopay Discount." Almost every lender (including the ones mentioned above) will knock 0.25% off your interest rate if you let them pull the money directly from your bank account. It sounds small, but over 10 years, that’s thousands of dollars staying in your pocket.

Actionable Steps for Your Funding Plan

Stop looking for a Citibank application link—it doesn't exist. Instead, follow this sequence to actually get your tuition covered:

1. Check your FAFSA status. Federal Direct loans are still the gold standard because they offer Income-Driven Repayment (IDR) plans that private banks won't touch.
2. Find a Cosigner. Roughly 90% of private undergraduate loans require one. If you don't have a parent or relative with good credit, your chances of approval drop significantly.
3. Compare Three Lenders. Don't just go with the first one that pops up. Use a comparison tool like Credible or Edvisors to see real rates side-by-side.
4. Look for "Cosigner Release." If you do use a cosigner, pick a lender that lets you remove them after 12 to 24 months of on-time payments. It’s a huge favor to whoever is helping you out.
5. Borrow the Minimum. Only take what the school certifies. Just because you can borrow an extra $5k for "living expenses" doesn't mean you should at an 8% interest rate.

Basically, the era of big national banks like Citibank and Chase dominating student loans is over. The "new" way to fund college is through specialized lenders who actually understand the nuances of a student's lack of credit. Focus your energy there.