Dec. 23, 2020

Wells Fargo & Co. has agreed to sell its private student loan portfolio to investors, which will lead to the closing of its student loan operations center in Sioux Falls.

The majority of the workers will move into other jobs within the bank, a spokesman said.

“Wells Fargo has several different product groups and functions located in Sioux Falls. The benefit of this diversified presence is that we have been able to secure roles for nearly all of our employees supporting the student loan product in that market,” said Manuel Venegas, a communications senior consultant with the bank. “The work has begun to transition more than 255 employees to these positions over the upcoming months.”

Wells Fargo declined to comment on how many employees were working at the center when they were notified in September along with customers that the bank was exiting the private student loan business.

The transaction is expected to close in the first half of next year, according to a statement from the bank. Wells Fargo will continue to accept applications for student loans from existing borrowers until Jan. 28, 2021.

Nebraska-based Firstmark, a division of Nelnet, will assume responsibility for servicing the portfolio for the new owners.

At the end of September, the principal balance of the private student loan portfolio was $10 billion.