A woman walks past JP Morgan Chase's international headquarters on Park Avenue in New York in this July 13, 2012, file photo. JPMorgan Chase & Co will stop making new student loans, according to a document reviewed by Reuters on September 5, 2013, after the biggest U.S. bank concluded that competition from federal government programs limits its ability to grow the business. (REUTERS/Andrew Burton/Files)
JPMorgan Chase & Co. to stop making student loans
“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.
The decision follows the bank’s move last year to make education loans available only to existing Chase bank customers.
The company’s student loan portfolio at the end of June held $11 billion — less than 0.5 percent — of JPMorgan's $2.44 trillion of assets.
The portfolio has been shrinking by roughly $1 billion to $2 billion a year since mid-2010, when Congress acted to bypass the banks and lend directly to students.