https://www.bloomberg.com/news/articles/2020-12-11/apollo-blackstone-said-in-talks-to-buy-wells-student-loan-book
14 replies (most recent on top)
@iii posted the sale earlier in the thread and for some reason got downvoted....
Deal already done.
https://www.bloomberg.com/news/articles/2020-12-19/wells-fargo-to-sell-student-loan-book-to-apollo-blackstone
People, the Feds took over Sallie Mae, the Student Loan lending corporation as part of he Affordable Healthcare Act, “Obama Care” in 2009. Wells apparently never got the memo.
As a result anyone with student loans can work for the federal government and have their loans paid off. How the heck do you think that compliant Sociology PhDs with $150K student loan debt afford those $70K SUVs?
Learn what’s going on.
I still cannot understand why people go to high cost universities to get low paying jobs. Why go to an ivy league to become an elementary school teacher? Why become an art history major, when no jobs exist to justify the investment in education.
The system is messed up. University costs have skyrocketed over the years and kids today will never make the economics work.
Political timebomb? Media can make it that way. Keep in mind 90 percent of student loan debt outstanding is federal loans. Schools have the govt in their back pocket and no incentive to keep costs down. Our higher education system is broken. Sorry, but business majors shouldn’t have to take a theater course or biology course at $500 a credit. Free tuition is the dumbest idea ever. Will just allow universities to continue to increase already ridiculous prices and schools are so over bloated with administrative costs. Best idea is to make the schools do their own financing. That will keep the costs in check and probably prevent schools from offering worthless degrees
Student loans is a small portfolio with all kinds of potential bad PR and government entanglements, makes sense to make an exit before the feds take the industry (the rest of the way) over.
When Chainsaw says he wants to make WF into a smaller bank, he's not joking. Wouldn't be surprised if WFAM is the next piece cut.
Wells Fargo & Company (NYSE: WFC) announced today it has entered into an agreement to sell its private student loan portfolio to investors, with Firstmark, a division of Nelnet (NYSE: NNI), assuming responsibility for servicing the portfolio upon the sale.
I don't know anything about the profitability, but it is a political timebomb. Next time Charlie gets dragged in front of Congress he gets to say they aren't in the business anymore.
WF is in sell-off mode. Don't believe a word the execs are peddling. They are corporate cons.
what percentage of the company is this? do employees go with it?
Interesting that other businesses can make money off the “so-called noncore” LOBs we are selling, but WFC can not.
If not that corporate spin, the other spin is that “we don’t make enough money” from the LOBs we are selling. Who is WFC to turn any profit down? WFC says we need to save money by taking your job away, but we are selling off profitable businesses?
Everything coming out of the C-Suite is half-truths at best, and straight up lies at worst. We can’t change that, but don’t believe a word they say.
This post is already outdated and the responses. Sold it to Nelnet yesterday afternoon. How many people work in the student loan division? Anyone know or could find out?
Wells really wants to get this deal inked by end of year