4-Jan-14
In the largest U.S. bank by assets, JPMorgan Chase & Co. has said it plans to first get rid of student loan business.
Following the bank on October 12 2012 exit, Wells Fargo will be the only large financial institutions to provide student loans in the United States. Several banks have left the student loan market, because the Obama administration says it is focused on direct loans to students. In one trillion student loan market share of banks in the country has a significant contraction.
JP Morgan's decision comes families have chosen is usually cheaper, the borrower more time to protect government-backed loans. $ 6.9 billion was recorded in 2008 in the past year Chase just $ 200 million in student loans.
"We just never see meaningful growth in this market, and have decided to invest our resources, and our other businesses, such as car loans, we do see some real potential for the future," Cui Western Wei Kessler a spokesman for JP Morgan, said in an interview. The bank has 12,500 customers share 560,000 customers Chase student loans.
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