Citibank sells student loan business

September 20, 2010 Citibank has entered into an agreement for the sale of The Student Loan Corporation to Discover Financial Services. Under the deal, Discover will become the owner of the private student loan business as well as $4 billon of its private student loans.

Above The Law speculates that Citi is getting out of the student loan business because the student loan bubble is likely to burst, with students not able to pay back large student loans in the current job market.

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