- Report: #1007882
Complaint Review: Citi Bank - Internet
Reported By:
ShadowHands -
, Michigan, United States of America
Submitted:
Updated:
-
Author Not Confirmed
Why?
Citi Bank
Internet, United States of America
Phone:
Web:
https://online.citibank.com/US/Welcome.c
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Citi Bank Witholding applied for loans for school to up their stock market value? Internet
Hello, I am a student at Rio Salado College, and have possibly found something interesting. Citibank deals with all of our student Federal Loans now at Rio Salado College, and some very odd occurrences have developed. I looked up how many students attend Rio Salado College at any given time, and found that the number is more than 25,000. So, let us say that at least half of those students are getting Federal Aid, which comes out to be 12,500 students. If each student gets around $3500.00 a semester to go to school, that total comes to $43,750,000 in student loans that Citibank handles at a given time, and that's if only half of the students apply for aid, but realistically it is probably more. So Rio Salado has a new rule where they split up student loans, giving half in the beginning of the semester and the other half of the loan at the midpoint of the semester, which for a lot of students it was January 28, 2013. So I looked online at the stock value of Citibank, and where its value dropped, and oddly enough its value dropped a dollar a share on January 28th. So I asked myself, "Is Citibank witholding money in agreement with Rio Salado College, so that Citibank's bottom line looks better to consumers for a fraction of a day or two in stock sales?"
The idea is that Rio Salado College and Citibank allow some loans to be dispersed, as to not arouse suspicion. But when Citibank dispersed some of the student loan money to the students, share holders of Citibank stock, if they owned a good deal of it, lost quite a bit of money even though the value only dropped a dollar a share. Imagine if a share holder owned 100,000 shares, that would be $100,000.
Citibank has been sued in the past for "Preying on the Poor," and it looks like they might be at it again. A student who goes to Rio Salado College doesn't go there because they are wealthy, but it is a school for the more insolvent population to attend to possibly earn more money in the future. It seems that Citibank in conjunction with Rio Salado College may be witholding funds to make their bottom line look better.
The idea is that Rio Salado College and Citibank allow some loans to be dispersed, as to not arouse suspicion. But when Citibank dispersed some of the student loan money to the students, share holders of Citibank stock, if they owned a good deal of it, lost quite a bit of money even though the value only dropped a dollar a share. Imagine if a share holder owned 100,000 shares, that would be $100,000.
Citibank has been sued in the past for "Preying on the Poor," and it looks like they might be at it again. A student who goes to Rio Salado College doesn't go there because they are wealthy, but it is a school for the more insolvent population to attend to possibly earn more money in the future. It seems that Citibank in conjunction with Rio Salado College may be witholding funds to make their bottom line look better.
