Student Class Action Targets Citibank

SAN FRANCISCO (CN) - A federal class action accuses Citibank and The Student Loan Corp. of teaming up with operators of sham vocational schools to dupe students into accepting loans that are paid directly to the schools in enrollment-based Ponzi schemes. "When the schools shutter their doors because the scheme collapses, the students are left with no education, no accreditation and no employment prospects but still obligated to repay the loans," the complaint states.

This lawsuit is brought on behalf of California residents who enrolled in Silver State Helicopters vocational school and borrowed money from Citibank.

Plaintiffs are represented by Kevin Rooney with the Pinnacle Law Group.

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