Sallie Mae, the nation's largest student lender, will become a private company owned by Bank of America, JPMorgan Chase and two private equity firms under a $25 billion deal announced Monday.

The buyout comes as student lenders grapple with federal funding cuts and a widening investigation into deceptive college lending practices. Last week, Sallie Mae agreed to pay $2 million and alter its lending practices as part of a settlement with New York's attorney general...

Some critics questioned whether the deal would be as good for the company's 10 million borrowers as for shareholders.

"There is a danger that a new Sallie Mae will be less transparent and have less public accountability, which presents a risk to students," said Michael Dannenberg, director of education policy at the New America Foundation, a Washington-based think tank focused on higher education...

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