Citigroup Inc. will exit its private student loan business after its indirect subsidiary, Student Loan Corporation, agreed with Discover Financial Services and Sallie Mae to divest its business through a string of transactions.

Citi has an 80% ownership in Student Loan Corp., and the rest is owned by public shareholders.

Under the deal, Discover plans to acquire Student Loan Corp. and its $4 billon of its private student loans. Sallie Mae will acquire $28 billion of securitized federal student loans and related assets from Student Loan Corp.

Citi will acquire certain federal and private student loans and other assets totaling $8.7 billion from Student Loan Corp.

Student Loan Corp. also will sell $4.7 billion in Federal Family Education Loan Program loans to the Department of Education. Shareholders of Student Loan Corp. will receive $30 per share following the deal closure. The transaction is expected to close by the end of the year, subject to regulatory approvals.

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