It seems the largest bank in the U.S. is starting to distance itself from the student loan market.
JPMorgan Chase & Co. decided it will limit its private student lending to customers only starting on July 1, according to Bloomberg.
“The private student loan market has continued to decline and government programs have expanded to help more students and their families,” Steve O’Halloran, a spokesman for JPMorgan Chase, told Bloomberg.
In order to receive a private student loan, customers must use Chase financial products, like a credit card or savings account.
The bank has been cutting back on student loans, with its educational-lending portfolio falling 15 percent since 2009 to $13.4 billion as of Dec. 31, according to Bloomberg. JPMorgan’s shrinking efforts come as the student loan market inches closer to $1 trillion.
Student loans made up $300 million in revenue for the bank in 2012, a drop from $1.9 billion in 2010.
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