Stamford-based The Student Loan Corporation (SLC), a subsidiary of Citibank N.A., will be sold to Discover Financial Services (Discover).

Discover will become the owner of SLC’s private student loan business, as well as $4 billon of its private student loans, according to a statement. Separately and immediately prior to the transaction, SLM Corp. (Sallie Mae) will acquire from SLC $28 billion of securitized federal student loans and related assets and Citi will acquire from SLC certain federal and private student loans and other assets totaling $8.7 billion. Upon the closing of the transactions described above, shareholders of SLC will receive $30 per share.

"The combination of SLC’s and Discover’s private student loan capabilities intends to provide a more robust, comprehensive suite of education finance solutions," said Michael Reardon, chairman, president and chief executive officer of SLC. "And it will enable delivery of industry leading service to schools and borrowers, while providing students with reliable access to an affordable education."