WASHINGTON - Corus Bank in Chicago said it has agreed to sell its student loan business to the Indiana Designated Account Purchase Plan and San Francisco-based Chela Financial.
The two will each buy half of Corus $450 million portfolio of student loans. The state-run Indiana outfit is to purchase the servicing business.
In a press release, Corus chief executive officer Robert Glickman said the sale will let his company exit a business that, while profitable, was under constant pressure due to a long history of lender yield reductions legislated by the federal government.
The sale will result in a pretax profit of about $23 million for Corus, the bank said. Mr. Glickman said funds freed up by the sale will be directed to Corus real estate lending business.