JPMorgan Chase (JPM) is getting out of the student loan business after concluding it’s not worth trying to compete with federal government programs.
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A spokesman for the nation’s number one bank by assets told FOX Business the bank will no longer accept student loan applications after Oct. 12.
“We just don't see this as a market that we can significantly grow,” Thasunda Duckett, chief executive for auto and student loans at Chase, told Reuters.
JPMorgan Chase said its student loan business was small, amounting to just $200 million. The bank said its student loan portfolio shrunk last year after it stopped accepting applications from non-JPMorgan Chase customers.
The bank noted that the private student lending market has declined dramatically in the past five years as federal programs have consumed the market.