April 17, 2008
Following in the Footsteps of Chase, Citibank Stops Lending to Certain Colleges
Citibank's student-lending division announced on Wednesday that it will no longer make federal loans at institutions where lending is less profitable, a day after a unit of JPMorgan Chase & Co. made a similar announcement.
It is unclear how many institutions or students will be affected by those decisions, but the moves are expected to especially hurt community colleges and for-profit institutions, where loan balances tend to be smaller and default rates higher.
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