Discover Financial Services has completed its $600 million acquisition of Student Loan Corp., which included $4.2 billion of private student loans and other assets, the Riverwoods, Ill.-based credit card issuer announced this week.
The acquisition, announced in September, is part of Discover’s push to diversify its business beyond credit cards, with student lending a major part of that effort,
Discover says it also acquired $3.4 billion of Student Loan’s asset-backed securitization funding and other liabilities in the purchase.
As part of the deal, Student Loan, which was majority-owned by Citigroup Inc., also sold $28 billion of its federal student loans to SLM Corp., commonly known as Sallie Mae. Citi also bought $8.7 billion of Student Loan’s federal and private student loans in a separate transaction.
