J.P. Morgan Chase & Co. (JPM) as of July 1 will no longer
offer student loans to people without an existing financial
relationship with the bank, according to reports.
Bloomberg News said J.P. Morgan's student loan portfolio was
$13.4 billion at Dec. 31. The bank's student lending pace has
declined sharply in the recent years and bad debts have increased,
according to the report Tuesday.
In an email to Huffington Post, a J.P. Morgan spokesman on
Tuesday said "we have decided to focus on providing private student
loans only to current Chase customers as the private student loan
market has continued to decline and government programs have
expanded to help more students and their families."
An earlier American Banker report also said U.S. Bancorp (USB)
is exiting the private student lending business.
Full story at
http://www.huffingtonpost.com/2012/04/10/jpmorgan-chase-student-loan-market_n_1412654.html
and
http://www.bloomberg.com/news/2012-04-10/jpmorgan-restricts-new-student-lending-to-bank-customers.html
and
http://www.americanbanker.com/issues/177_63/us-bank-student-lending-cfpb-1048016-1.html
-Dow Jones Newswires; 212-416-2900