Soldier challenges Citibank for changing terms of student loan
Tuesday, February 22, 2011
Minneapolis StarTribune: A member of the Minnesota National Guard who has served in Iraq has filed a lawsuit against Citibank, challenging its “mandatory forbearance” policy for student loans being repaid by military personnel. Chris Serres reports when Capt. Lyndsey Olson was called to active duty, she had Citibank lower her interest rate from 9.25% to 6%, the maximum permitted under the federal Servicemembers Civil Relief Act. But Citibank then put her loan in forbearance, cancelling her automatic payments and allowing her balance due to increase.