Citi Bank CITIIST Loan?

Hi. My friend is an international student going to grad school here in the US. She was offered the opportunity to apply for a student loan through Citi Bank for the CITIIST� LOAN. Has anyone taken advantage of these loans? Also, apparently they don't need a US co-signer so what is Citi Bank going to use as collateral, as in what if she has to go back home? If she does, there's no way for her to pay them back coz she comes from a poor country. Does anyone know? I would really appreciate input from banker or loan officers and/or anyone else who really DOES know or have a good idea about how these loans work for international student. For myself, I'm wondering, what's the catch? The interest rate is 7%, which doesn't seem bad so...what's the catch? I appreciate all the info and advice you can give. Thanks