Tuesday, April 28, 2009

If citibank goes under, what happens to my student loan from there?

I have a college loan from CitiBank, and they're having trouble right now. what happens to my college loans from there if citibank goes under? 
 
Public Comments
  1. Your loan will be sold to another bank
  2. someone else will just pick it up. you might luck out if the gov't grabs it they ll probably renegotiate your rate with you since they want to get rid of their bad assets as much as you want to get rid of your debt
  3. Your loan will be sold, you still need to pay it.
  4. Most likely Citibank sold your loan a long, long time ago...they are probably only the loan servicer (if you know how to read mice print you can probably prove the true owner of your loan). But, even if they did still own it, it would become an asset of the company in bankruptcy and would be sold to the highest bidder. Then you would pay that company according to the same terms.
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