Citibank's Student Loan Corporation Announces Additional Loan Benefits for College Students.

Company Rolls Out Unique Program Allowing for Unlimited Restoration of Lost Benefits

STAMFORD, Conn. -- The Student Loan Corporation (SLC), a subsidiary of Citibank N.A., and a leading originator of student loans, today announced the launch of three new benefits for college students and parents:

* Automatic interest rate reduction at beginning of repayment

* 1.00% Federal Default Fee will be paid by Citibank and/or guarantor partners

* Unlimited benefit recovery capability

"With college costs overall on the rise - we're very excited to be rolling out innovative ways to save students and parents even more on their Federal Stafford, Parent PLUS or Graduate PLUS Loans," said Michael Reardon, Chief Executive Officer and Chairman of the Board of The Student Loan Corporation. "Students and parents can take advantage of even greater savings upfront by not having to pay the 1.00% Federal Default Fee on their loans and then on the back-end, getting an automatic interest rate reduction - as a graduation present."

In addition to its existing industry-leading benefits, Citibank ensures that the federally required 1.00% Federal Default Fee will be paid on behalf of all borrowers for Stafford, Parent PLUS and Graduate PLUS Loans. Importantly, Citibank's new interest rate reduction benefit will be applied automatically when the student or parent enters repayment - typically upon graduation.

"Because the interest-rate reduction is automatically applied at the beginning of repayment, instead of several years down the road -- the savings are substantial to students and parents," said Kurt Schneiber, Executive Sales Director of The Student Loan Corporation.

Further solidifying its position as the industry leader, Citibank also announced an important and completely new feature it will offer that allows for benefit recovery.

Citibank's pioneering new benefit-recovery feature offers new borrowers a unique benefit. If they lose their automatic interest rate reduction at repayment benefit on their federal student loans, due to late payments, they may earn it back again by making a number of consecutive on-time payments.

"It has been a standard practice among education lenders to completely eliminate any earned benefits if a borrower misses a regular payment or pays late," said Mark Kantrowitz, Publisher of FinAid.org - the largest student aid web site in the world. "I have long been outspoken about this issue as being unfair to borrowers -- now Citibank has done something about it. Citibank clearly understands the needs of students and parents."

Unlike the few other lenders who offer benefit recovery as a one-time opportunity for each borrower, Citibank will make this benefit recovery feature available to borrowers an unlimited number of times during the entire repayment term of their federal loans. Students and parents will always have the opportunity to earn back this benefit.

These new benefits are applicable to all Federal Stafford, Parent PLUS and Graduate PLUS Loan borrowers as of November 15, 2006.

Students and parents are encouraged to visit www.studentloan.com/secondchances or call 1-800-967-2400 for more information.

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.