<p>So I took out $1500 last year in Federal Stafford Subsidized loans from Citibank, but I got a letter telling me my loans have been "sold" to the US Department of Education.</p>
<p>Except I am planning on taking out $4000 in Subsidized loans this year. Should I continue with Citibank? Should I take the "selling" of my previous loan as a bad sign? Any help?</p>
<p>Selling of loans, all kind of loans, is common today. Don’t take it as any kind of bad sign.</p>
<p>The feds have made it clear that they will be taking over all Stafford loan distributions in the next few years. Soon, there will be no choice over who your loan comes through. The next loan you take with Citi will likely be sold as well.</p>
<p>I don’t think it will/should affect you at all. You are basically just going to make your payments to the US Department of Education instead of Citibank.</p>
<p>The recent selling of loans by lenders to the Department of Education is happening with virtually ALL FFELP lenders. You should be fine with Citi as your lender for the upcoming year. When you graduate, your best option is to consolidate so you end up only making payments to one lender.</p>