Wachovia Corp. has stopped accepting undergraduate applications for private student loans.

The Charlotte banking company will continue to offer student loans for graduate school and professional schools, as well as loans backed by the government.

"We are constantly evaluating our business, and felt that it was no longer prudent at this time" to offer the undergraduate loans, Ferris Morrison, a Wachovia spokeswoman, said Thursday.

Wachovia services the student loans it originates. Ms. Morrison said that at the end of the second quarter it had almost $10 billion in its student loan portfolio, which is less than 4% of the company's entire loan portfolio.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.