Bank of America To Stop Making Private Student Loans

Bank of America, the nation’s largest bank and one of our largest student lenders, today announced that it would stop making private student loans and instead “do more lending under a federally guaranteed program,” says the Wall Street Journal.

More than 50 lenders have stopped making student loans in the past few months as the credit crunch continues to make student lending unprofitable. Sallie Mae recently warned that it could no longer make profitable student loans at all.

Bank of America to Direct Student Loans to Federal Program [WSJ]
(Photo:Meghann Marco)