JPMorgan Chase and US Bank both no longer offer student loans

Rebecca Harrington

JPMorgan Chase and U.S. Bank both decided that student loans cost too much for them to offer anymore, the Huffington Post reported.

U.S. Bank, a Minneapolis-based bank, stopped offering student loans on March 29 because they were too small to be profitable, according to American Banker.

"It's a very small business for the bank, and we've decided to make a strategic shift and move resources," U.S. Bank spokesman Thomas Joyce told American Banker.

JPMorgan Chase, the largest bank in the United States, will only offer student loans to existing Chase customers on July 1. Bank officials also said that student loans did not profit enough.

"We have decided to focus on providing private student loans only to current Chase customers as the private student loan market has continued to decline and government programs have expanded to help more students and their families," Steve O'Hallaran, JPMorgan Chase spokesman, told the Huffington Post in an e-mail.

While large banks exit the student loan business, the Consumer Financial Protection Bureau reported that student debt reached $1 trillion.