Butch

Holy CRAP I hate Citibank right now.

Reapplying for student loans for the upcoming school year.

Last year, they offered me Prime MINUS 1% as my loan rate (about 2.5% now).

This year, they are offering LIBOR PLUS 7.75% (about 8.5% now).

I thought, wtf happened to my credit score, so I bought reports from Experian and Transunion . . . I'm at 800 on both of them, which is even slightly higher than where I was last year when I applied.

I called to see if that jump in rates was normal and was told that the best rate they are offering now is LIBOR plus 4.75%, while the worst they are offering is LIBOR plus 11.75%.

I got the best rate they offered last year - how am I in the middle of the pack this year with an 800 credit score??

Bastards. I'm going to be on the phone a lot tomorrow, I guess.

Ugh.

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ray

This is the same Citibank that almost collapsed, right? Doesn't shock me their rates they can offer you spiked. They fail at banking and everything Finance related as far as I am concerned.

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Butch

Shouldn't matter. The loans are pretty commoditized - I can shop around and they would miss out (which is what I'll be doing).

I certainly expected my rate would be higher this year due to the increase in perceived volatility and risk with the loan, which is represented by the increase in their best rate.

However, there is still no explanation why someone with an 800 credit score would get a rate that it's in the middle of the pack for what they're offering.

Jeffbx

Are you eligible for FAFSA? I hear they're lowering the rates this year.

VTGreg

Why would they offer you the best rate they have out of the gate? I've found that most credit card companies and banks leave plenty of room for negotiating. Were they willing to give you the best rate they offer after calling them?

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Butch

Jeff - Yes, I'm eligible for FAFSA-related loans, but those loans are tapped out.

Stafford and Perkins only take you to about $30,000 a year for grad school loans. Then you need to find private loans to make up for whatever scholarships do not.

VT - student loans are a little different from credit card or home loans. As far as I understand there isn't too much in the way of negotiation involved. They make an offer, and then you can dispute the offer, but it seems there isn't too much in the way of negotiation. We will see, however, because I'm certainly going to be calling them to try to get a better rate.

As for last year, they offered the best rate right off the bat.

VTGreg

Good luck shopping around. Hopefully you can find something substantially better because that is an expensive rate.

gwilks98

NPR just had a story this morning that Citibank is jacking up rates and minimum payments for a good number of their credit cards. They are claiming it's due to all the people defaulting.

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Jeffbx

Too bad they took on so much bad risk. Maybe they should take it out of the retention bonuses they paid to keep their oh-so-important top people.