Discover Agrees to Buy Citigroup’s Student Loan Corp
Discover Financial Services agreed to buy Citigroup Inc.’s Student Loan Corp. in a deal valued at $600 million to become the third-biggest U.S. provider of private student loans. Discover may be able to make more credit-card loans by introducing its brand to customers of its expanded student-loan business. “We do expect over time these students and their parents will appreciate the great value we’re providing in student loans, and we hope to certainly attract some of them to credit cards,” said Discover CEO David Helms. Story by Donal Griffin and Peter Eichenbaum for Bloomberg.