- Reuters is reporting that JPMorgan Chase & Co will no longer accept private student loan applications after October 12.
- According to a company memo, the decision results from the bank's limited ability to expand the business due to competing federal student loan programs.
- The bank last year limited its student loan offerings to existing Chase bank customers, and the student loan business isn't among any of those named as currently under investigation by the federal government following the $6.2 billion "London Whale" derivatives loss.
From the article:
... "We just don't see this as a market that we can significantly grow," said Thasunda Duckett, chief executive for auto and student loans at Chase, in an interview on Thursday.
Not making more loans "puts us in a position to redeploy those resources, as well as focus on our No. 1 priority, which is getting the regulatory control environment strengthened," she said. ...