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M&T, two others end federal student loans
M&T Bank Corp. is one of three major banks dropping out of the federal student-loan program for the 2008-09 academic year, according to an article in today's Wall Street Journal. The other banks are HSBC Bank USA of New York and TCF Financial Corp. of Minnesota.
Federal budget cuts spurred the firms to pull out of the Federal Family Education Loan program, the article states. Last year Congress reduced U.S. subsidies paid to private lenders by more than $20 billion, shrinking the profits the banks earned from making new student loans. Flux in the securities markets was a factor in the banks' exiting the program, too, according to the article.
Buffalo, N.Y.-based M&T is the midstate's second-largest bank based on total deposits, after Fulton Financial Corp. of Lancaster County, according to Business Journal records.
