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Student Loan Corp May Falter Without Government Pact

Source: online.wsj.com Posted By: Billy 3443 days ago

Student Loan Corp. (STU) is feeling a little lonely these days - and that could devastate its business.

The company, a subsidiary of Citigroup Inc.'s (C) Citibank N.A., was the only publicly traded dedicated student lender not chosen last month for the government loan-servicing contracts analysts say could help save the industry. Student Loan wasn't even picked as a finalist. A source familiar with the contracts said servicing capacity was a major consideration in choosing the final four recipients.....

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