JPMorgan plans to stop making loans to students in October, according to a report from Reuters.
The company holds an $11 billion student loan portfolio but says competition from Federal programs and the inability to grow the business is the reason for the shutdown but they could be trying to get out of the business before trouble hits.
They aren’t the only private lenders quitting the student loan business:
Private lending for education declined sharply after the financial crisis, falling from $23 billion in the 2007-08 school year to $6 billion, or less than 10 percent of total student loans, in 2011-12,