JP Morgan Deal Shrinks Student LoanBusiness

December 20, 2005, 1:00 a.m. EST 1 Min Read

NEW YORK - (12/20/05) -- JP Morgan Chase, the nation's secondbiggest provider of student loans, agreed last week to acquireCollegiate Funding Services, Inc., the Fredericksburg, Va., studentlender, for $663 million, continuing a trend of consolidation ofthe student loan market. Last year, JP Morgan's Chase EducationFinance unit originated $7.9 billion in guaranteed student loans,making it the second largest student lender behind Sallie Mae,while Collegiate Funding originated $4.4 billion in student loans.Collegiate Funding also services a $12.1 billion student loanportfolio. The combined business will be based in Fredericksburg, asuburb of Washington, D.C.

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