Wells Fargo (NYSE: WFC) has announced the sale of its private student-loan portfolio in the first of what could be several divestitures for the bank in the coming months. The bank did not disclose financial terms of the sale or even the names of the buyers. But Bloomberg, citing anonymous sources, reported that the private equity firms Apollo Global Management (NYSE: APO) and Blackstone (NYSE: BX) are the buyers. Once sold, the portfolio will continue to be serviced by Firstmark, a division of the student loan company Nelnet (NYSE: NNI). The balance of Wells Fargo's private student-loan portfolio is about $10 billion, and the portfolio has an average FICO score of 768, according to Bloomberg. Image source: Wells Fargo The sale of the student loan portfolio makes good on a promise by CEO Charlie Scharf to exit businesses that aren't core to Wells Fargo's strategy. It could be the first of several divestitures at the bank, as rumors suggest the bank is also exploring the sale of its asset management arm and private-label credit card division. Ultimately, the bank is planning to cut annual expenses by about $10 billion, although the time frame of these cuts is still unknown. New student loan applications from existing private student-loan customers will still be accepted at the bank until Jan. 28, 2021. The transaction is expected to close in the first half of 2021. 10 stocks we like better than Wells FargoWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Wells Fargo wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of November 20, 2020 Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Nelnet. The Motley Fool has a disclosure policy.Source