Discover buys $2.5B in student loans from Citi
Discover Financial Services says it is buying another $2.5 billion in private student loans from Citigroup.
The deal, disclosed in a regulatory filing, comes nine months after Discover bought Citi’s private student loan business, The Student Loan Corp., and a portfolio of loans and other assets totaling $4.2 billion.
The price for the latest deal is roughly 99 percent of the face value of the loans, which translates to about $2.48 billion. The purchase is expected to close by Sept. 30.
In June, Discover said it held $52.5 billion in student loans, including a 5 percent increase that reflected the Student Loan Corp. buyout, as of May 31, the end of its fiscal second quarter.
Discover shares fell 15 cents to $25.01 in morning trading. Citigroup Inc. shares fell 50 cents to $30.55.
Sarra Sounds Off, Ep. 25: Wrestling and hockey state championships On the latest episode of "Sarra Sounds Off," Gregg Sarra and Matt Lindsay recap all the state wrestling action from Albany this past weekend, plus Jared Valluzzi has the ice hockey championship results from Binghamton.
Sarra Sounds Off, Ep. 25: Wrestling and hockey state championships On the latest episode of "Sarra Sounds Off," Gregg Sarra and Matt Lindsay recap all the state wrestling action from Albany this past weekend, plus Jared Valluzzi has the ice hockey championship results from Binghamton.
