In another moved fueled by the US Government, Citibank has decided to sell off it’s student loan business. The reasoning behind the move is simply to strengthen the core of Citibank (meaning the online and brick and mortar baking aspects) while removing all of the smaller components of the bank. While it’s unclear just how long this process can take, Citibank expects to lose around $500 million in the process.
If you happen to have a student loan furnished by Citibank (of which I have five), you will most likely be sent a notice in the mail that your student loan provider is changing to either Sallie Mae or Discover Financial Services. The only difference to borrowers should be where you mail your payments (or where you make them online). Should your loan be acquired by Discover, you can expect to receive a good amount of credit card offers with your monthly statements, as that move has already been planned.
While this news isn’t really a big deal, it further illustrates the increasing role of government is private sectors of our economy. A few years ago, you wouldn’t have heard a peep about student loans but with more regulation coming down the pipeline about how lenders can proceed, you might see a few more major student loan corporations selling their stock to companies like Sallie Mae.
Anyway, let’s take a look at the best money articles from this past week shall we?
Kids and Money: Blog Readers Weigh In With Their Favorite Tips @ Wallet Pop: We participated in National Money Talk Night along with Moolanomy and PT Money to help parents teach their children about their finances. This post displays some of the great questions asked by readers of DoughRoller, and their answers.
15 More Things You Shouldn’t Be Paying For @ PT Money: People are always claiming that they can tell the difference between Coke and Pepsi and now, the difference between bottled and tap water. I’ve made a habit of testing people without telling them and not a single person has suggested the water comes from the tap!
6 Tips for Choosing the Right Home Safe @ Wise Bread: While I don’t yet own a home, I’ve always been attracted to the big safes that even experienced thieves cannot crack. The only thing I worry about is having to move it should I buy a new house!
Florida Marlins Financial Documents @ Deadspin: This one is a couple of weeks old but still a goodie. For some quick background, the Florida Marlins begged the city of Miami to build them a new baseball stadium to help with attendance and the fan base because they were poor. Well their financials were leaked showing that “poor” was slightly incorrect because they have the best profit margin in baseball. Now the city of Miami wants their money back!
8 Tips for Avoiding a Speeding Ticket @ Cash Money Life: I’ve only received one speeding ticket in my illustrious driving career and I can distinctly saying to the passenger in my card “I’m doing 45 in the 30,” as the cop does his U-Turn. What an idiot I was!
Is Your Debt a Relationship Killer? @ Moolanomy: Another one I have personal experience with, my debt is actually doing a good job of keeping my relationship grounded. We work towards the debt and have a strict budget that keeps our finances in good order.
12 Tax Myths Debunked @ Main Street: A neat article showing the differences between getting away with something and thinking it’s legal to do so. Using the defense “I was able to do this last year” is a line most likely to bury you when fighting the IRS.
Published or updated December 6, 2011.