Monday, September 16, 2013

Chase to Stop Making Student Loans

NEW YORK (Reuters) - JPMorgan Chase & Co (NYS:JPM) will stop making student loans in October, according to a document reviewed by Reuters on Thursday, after the biggest U.S. bank concluded that competition from federal government programs limits its ability to expand the business.

The student loan business is not among those that JPMorgan has publicly said are being probed by government authorities for possibly illegal practices. Those under investigation include mortgage banking, credit card collections, rate-setting for floating-rate business loans and hiring for investment banking in China.

Remaining private loan players in the market, are; Sallie Mae, (SLM.O), Wells Fargo & Co (NYS:WFC) and Discover Financial Services (NYS:DFS).