Borrowing Money for School

Citigroup to sell stake in Student Loan: report

BANGALORE (Reuters) - Citigroup Inc is expected to announce a deal to unload its unit Student Loan Corp as early as Friday, The New York Post reported.

U.S. education lender SLM Corp , known as Sallie Mae, along with one or two other student lenders, is hammering out an arrangement to buy Student Loan and could offer $500-$600 million, the Post said, citing sources.

The prospective investors are keen on breaking up the loan portfolios, with Sallie Mae interested in the government portfolio since it has a loan-servicing platform, the Post said.

Citigroup, Student Loan and Sallie Mae were not available for comment.

Student Loan is 80 percent owned by Citigroup's Citibank N.A. while the remaining 20 percent is publicly traded.

(Reporting by Santosh Nadgir in Bangalore; Editing by Dan Lalor)

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