JPMorgan Chase bank says they will stop writing loans to students by the end of the month. The Biggest bank in the United States said they don't see a growing market for the loans.

The bank has decided to shut down their student loan department and will not issue applications for new private student loan applications.

There is over 1 trillion dollars in outstanding student loans, making it the second largest source of household debt after mortgages. Just 10 years ago, student loans stood at 240 billion dollar. About 150 billion dollars of the total is comprised of private student loans made by banks and other financial institutions, according to a report issued by the Consumer Finance Protection Bureau last year.

The CFPB reported that around 8 billion dollars of private student loans were in default. That number is likely to go higher if interest rates rise because most private student loans, unlike federal loans, are variable rate loans linked other financial instruments.

JPMorgan is the second big private lender to step away from the business. Last year US Bancorp closed their student loan department exited the business. That leaves only a handful of other banks and lending institutions to make the critical loans for college students.

Meanwhile, a recent report found Sallie Mae, the nation's largest holder of federal student loans, is failing to enroll many of its distressed borrowers into one of the Obama administration's main initiatives for alleviating high student debt.

Estimates provided by the White House suggest Sallie Mae, or SLM Corp., has enrolled few borrowers into the Income-Based Repayment program.

Sallie Mae dominates the now-discontinued Federal Family Education Loan Program, owning between 37 and 40 percent of the outstanding FFELP debt held by the private sector. But its share of FFELP borrowers who are enrolled in IBR is about half that, or 15 to 18 percent.

Officials have cautioned that the government statistics are just estimates, but so far, they are the only available gauge of how Sallie Mae administers the loan relief program.