[WASHINGTON, April 16 (Reuters) - Student Loan Corp (STU.N: Quote, Profile, Research), a subsidiary of Citibank N.A. (C.N: Quote, Profile, Research), said on Wednesday it will suspend lending at certain schools and withdraw from the Federal Consolidation Loan market because of market turmoil and federal legislation.
"These changes reflect the decisive action that is needed to manage our business through this difficult time in the overall economy," Michael Reardon, chief executive of SLC, said in a statement.
SLC said that beginning May 1, it will withdraw from the Federal Consolidation Loan market and will stop lending at schools where loans with lower balances and shorter interest-earning periods are less profitable.
Most U.S. college students depend on loans to help pay for their education. The federally guaranteed student loan program is the biggest source of loans, but students can also obtain private loans with no government backing or borrow through their colleges from the government's direct loan program.]-Reuters
Never good. . .
