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Citi Student Loan Rebate Reward Price Increase

I’ve been doing research on the various reward catalogs of credit card companies when I discovered my favorite reward, a student loan rebate check from the Citi ThankYou Network [3], had gone up in price. I would routinely cite that reward as one of the main reasons I kept using my Citi card. A few short months ago, for 10,000 points, you could get a $100 check written to your student loan servicer. That came out to each point being valued at 1¢.

Now, the point prices for student loan rebate checks are (reference [4]):

Reward Points Value per Point (¢)
$1,000 check 125,200 0.79872¢
$750 check 93,900 0.79872¢
$500 check 62,700 0.79745¢
$250 check 31,400 0.79618¢
$100 check 12,700 0.7874¢
$75 check 9,500 0.78947¢
$50 check 6,400 0.78125¢
$25 check 3,300 0.75758¢

At even the most favorable rate, it’s still at least a 20% reduction in value!

Another thing to note: the schedule as a little hitch at the $75 check mark. You get a slightly higher value out of converting to a $75 check than a $100 check, which disappears if you can wait to $250.

This is one of the reasons why I wanted to do a review of all the reward networks’ catalogs. It’s important to understand that while you may get “5 points per $1 spent,” to assume it’s equivalent to a 5% cashback credit card would be a mistake.

All good things come to an end, I suppose.

(Photo: m00by [5])