Citigroup ( C) and CIT ( CIT) formed a student lending partnership.

The New York-based financial giants said the arrangement would come through Citi's Student Loan ( STU) unit and CIT's Education Lending Group. The company said the arrangement would "help parents nationwide pay for their children's education."

"We are proud to form a strategic alliance with a company that is as dedicated as we are to providing full-service education funding solutions to customers," said Student Loan's Michael Reardon.

"This alliance combines the financial resources, industry expertise and product knowledge of two companies that share the same vision, have similar values and strive to be leaders in education financing," said Education Lending's Robert deRose. "Our partnership with The Student Loan Corporation will enable us to better serve the needs of our customers by providing them with innovative products and streamlined loan servicing. Meeting the unique needs of every one of our parents and school customers is our ultimate goal."

On Tuesday, Citi fell 35 cents to $44.88, CIT slipped 6 cents to $44.31 and Student Loan dropped $2.51 to $230.

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