Private College Student Loan

if CITIbank goes under, what happens to the student loans?

If someone owes for a student loan that they are currently paying back, what happens?

Public Comments

1. Whoever buys the assets of the bank become your loan holder. You will make the payments to them. They will contact you.
2. Citibank isn't going under, it's re-structuring. Even if it went out of business, you would have to pay back your loan to whoever takes over.
3. CitiBank is not going to go under. Let's say, for the sake of argument that it did, however. Student loans are guaranteed by the federal government. The government then would step in and see to it that the loans were handled properly and taken into repayment on time. Similarly, any other debts owed to the bank would have other arrangements made. Credit portfolios are considered assets. If a bank were to close its doors, the assets would be managed by another entity so that those debts could be collected on behalf of the institution. The only way to get out of a student loan, other than a few forgiveness programs, is to die.