Students Taking Advantage of Historically Low Rates by Consolidating Their Federal Loans with Citibank; Citibank Urges Students to Lock in a Low Rate before July 1, 2006 to Lower Their Payments

Business Wire, May 31, 2006

STAMFORD, Conn. -- The Student Loan Corporation, a subsidiary of Citibank N.A., and a leading originator of student loans, is urging all student loan borrowers to consider consolidating their student loans. Citibank wants students to be aware that the interest rates on the loans will increase by 1.84 percentage points on July 1, based on rates for short-term Treasury bills announced yesterday. Citibank advises borrowers to consolidate their outstanding college debt in a new federally guaranteed, fixed-rate loan before July 1 to lock in significant savings.

Loan consolidation allows students to pay off their current loans, which may have different and variable rates and obtain a new loan with a fixed interest rate and a single monthly payment. Consolidation Loans also allow students to take advantage of today's interest rates and lock in a lower fixed rate for the duration of the loan.

Citibank, with almost 50 years of experience in student loans, can provide students with advice and guidance to determine whether consolidation is right for them. For applications and information, student borrowers may call or apply and sign online. Citibank handles hundreds of thousands of loan consolidations every year and takes pride in its long history of processing applications expeditiously.

"Citibank understands that there may be times where a borrower may experience financial challenges when it comes time to pay their loans," said Michael Reardon, Chairman, President and CEO of The Student Loan Corporation. "Citibank has recently developed a new offer allowing parent borrowers the ability to enjoy a payment-free period of 48 months. This option helps out borrowers who are experiencing financial difficulty."

Borrowers in their post-graduation grace period may apply by June 30, 2006 and have their applications held until the end of their Stafford Loan grace period. Citibank will also offer students guidance on how to determine eligibility for consolidation, calculate the interest rate, understand the repayment terms, deferment and forbearance options and much more.

Borrowers consolidating their loans with Citibank before the July 1st deadline will be eligible for significant borrower benefits including:

--An interest rate reduction of 0.25% for enrolling in Citibank's E-Z Pay automatic payment debit program

--A rate reduction of another 1.00% after making the first 36 consecutive monthly payments on time

--One simple loan payment each month

Citibank has launched a new website for students to learn more about Consolidation Loans. The site is populated with a wide array of important information about consolidation including eligibility, ways to apply, ways to repay and tools such as an online calculator. The website can be accessed at www.studentloan.com/consolidate to learn more. Students may also contact the Citibank phone center at 1-800-690-3373

About Citibank

Citibank is a member of Citigroup (NYSE: C), the leading global financial services company, which has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Major brand names under Citigroup's trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney and Banamex. Additional information may be found at www.citigroup.com.

The Student Loan Corporation (NYSE: STU) is one of the nation's leading originators and holders of insured student loans providing a full range of education financing products and services to meet the needs of students, parents, schools and lenders. The company was previously a division of Citibank and became a NYSE-listed corporation in 1992. Citibank, N.A. is the majority shareholder. Citibank was one of the first banks to finance higher education, beginning in 1958. Today, The Student Loan Corporation serves approximately 1.7 million customers and over 3,000 schools nationwide.

For information or inquiries regarding student loans, please call 1-800-967-2400. Customers with Telecommunication Devices for the Deaf (TDD) may call 1-800-846-1298. College planning and financing information is also available at www.studentloan.com.