JP Morgan Chase Ends Partnership WithSallie Mae
NEW YORK - (03/24/05) -- JP Morgan Chase said this week it isterminating its partnership with Sallie Mae, which originated,marketed and sold the biggest pipeline of guaranteed student loansin the country, more than $5 billion worth a year. JP Morgan movedto end the deal after acquiring Bank One last year, thesecond-biggest student lender among banks, saying that Sallie Mae'smove into loan originations over the past five years has created aconflict among the partners. Under the eight-year-old deal, JPMorgan originated its own branded student loans exclusively throughthe joint venture and Sallie Mae purchased and serviced the loans.Under the dissolution of the partnership, JP Morgan and Sallie Maewill extend their loan origination and servicing agreement throughAugust, 2010 for school that want to continue to use the Sallie Maeplatform for JP Morgan and Bank One loans. Effective immediately,the Bank One sales force will now market both JP Morgan and BankOne-branded student loans using six of the country'sorigination/servicing platforms: Sallie Mae, Great Lakes (creditunions) Ed Financial, Nelnet, ACS and AES. JP Morgan Chase was thecountry's largest originator of guaranteed student loans in 2004with $6.4 billion under the Chase and Bank One brands.