Citigroup Sells Student Loans Subsidiary to Sallie Mae, Discover
On September 17, Citi Holdings, a division of Citigroup Inc., announced the sale of the indirect subsidiary The Student Loan Corp. (SLC) to Sallie Mae and Discover Financial Services.
On September 17, Citi Holdings, a division of Citigroup Inc., announced the sale of the indirect subsidiary The Student Loan Corp. (SLC) to Sallie Mae and Discover Financial Services.
As part of the transaction, the U.S. Department of Education also purchased a piece of SLC's student loan portfolio, buying $4.7billion in federally guaranteed student loans, and Citibank bought back approximately $8.7billion in unguaranteed SLC assets for sale at a later date ("Citi Subsidiary The Student Loan Corporation Sells Securitized FFELP Assets to Sallie Mae," Citigroup press release, Sept.17, 2010).



