Bank One

In-source Student Loan Sales and Marketing

Bank One Moves to In-source Student Loan Sales and Marketing

Bank One announced today that it notified Sallie Mae on July 1 that the bank has exercised its contractual right to terminate its marketing agreement with Sallie Mae and in-source student loan sales and marketing. While Sallie Mae has said that it is contesting the termination, Bank One believes that its actions are in accordance with its contractual rights and are entirely proper.

Bank One said it is important to control its brand, have salespeople as its employees, and thus own the knowledge and expertise.

This action reflects the continuing commitment of J.P. Morgan Chase & Co. and its new subsidiary, Bank One, to the student loan business. The company will continue to provide student loans, under both the Bank One and Chase brand names.

Bank One has not terminated its agreements to sell student loans to Sallie Mae. In addition, Chase's joint venture with Sallie Mae remains in place.

School customers can continue to use the same processes to provide loans to their students under both the Bank One and Chase brand names.

Bank One, NA, Ohio, is a subsidiary of J.P. Morgan Chase & Co., a leading global financial services firm with assets of $1.1 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers and businesses, financial transaction processing, asset and wealth management, and private equity. A component of the Dow Jones Industrial Average, J.P. Morgan Chase & Co. has its corporate headquarters in New York and its U.S. retail financial services and commercial banking headquarters in Chicago. Under the JPMorgan, Chase and Bank One brands, the firm serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients.

July 02, 2004