School Loan Consolidation

Q. What is A Next Student School Loan Consolidation?
A Next Student School Loan Consolidation program combines several existing student
loans into one new loan. Your payment will be reduced by as much as 60% each month.

Q. What is the interest rate?
A. The interest rate for a Student School Loan Consolidation is the weighted average of the
interest rates on the loans being consolidated, rounded up to the nearest one-eighth of one
percent. This rate is fixed for the life of the loan and cannot exceed 8.25%.
The interest rate on a Student School Loan Consolidation is set according to federal law.

Q. How can I consolidate my existing loan with the grace rate?
A. You have the option of consolidating your loan during your grace period and taking
advantage of a rate as low as 3.50%. It is important to remember that you must indicate the
month and year of your grace end date in Student School Loan Consolidation application if
you would like to hold the processing of your Consolidation Loan until the end of your 6-
month grace period. The rates in effect at the time that you apply for your Consolidation
Loan will be used in the weighted average calculation to determine the rate on your
Consolidated Loan.

Q. Will the reduced interest rate that I am receiving due to borrower benefits on my existing
loans be used to calculate the fixed interest rate on my new Student School Loan
Consolidation?
A. No. Interest rate reductions received, as borrower benefits on existing loans will not be
considered when determining the applicable interest rate on your school loan
consolidation. For example, if the existing rate on your loans is 4.08%, but you were
receiving interest rate reductions as a borrower benefit that reduced the interest rate to
3.08%, the interest rate used to calculate your new school loan consolidation will be 4.08%.

Q. How can I find out what my consolidated loan payment will be?
A. To estimate what your payments and total amount of interest paid may look like, input
various interest rates into your Loan Consolidation Application. After your application has
been reviewed, the disclosure and monthly account statement will include your exact
payment amount and interest rate.

Q. How do I know if I am eligible for your school loan consolidation program?
A. If all of your loans are in grace, repayment or in a deferment/forbearance, you may be
eligible for a Next Student school loan consolidation program. If you are currently attending
school you now have the opportunity to consolidate the federal student loans that you
already have. You will need to request that the status of your loans be changed from “In-
School” to “Repayment” so that they are eligible for consolidation. If you have defaulted on
any of your loans, you need to make satisfactory payment arrangements with your current
lender and provide evidence of that to Citibank. Loans subject to a judgment or wage
garnishment are not eligible for consolidation.

Q. Can I consolidate my loans under school loan consolidation program while I am
attending school?
A. Yes. If you are currently attending school you now have the opportunity to consolidate
student loans that you already have. You will need to request that the status of your loans be
changed from “In-School” to “Repayment” so that they are eligible for consolidation. You’ll
want to be sure that your lender places the loan on in-school deferment. This ensures that
you will be able to consolidate at a rate that is 0.60% lower than the current repayment rate.
When requesting early repayment you will also be waiving your six-month grace period.