NEW YORK (MarketWatch) -- Student-loan company Sallie Mae SLM, +0.98% said Wednesday that it will split itself into two companies, one focused on education loan management and one working on consumer banking operations. The two companies will initially be owned by Sallie Mae's existing shareholders. The company also said that Chief Operating Officer Jack Remondi will take over as chief executive, replacing retiring CEO Albert Lord. The education loan company will manage $118.1 billion in Federal Family Education Loan Program loans, $31.6 billion in private education loans, and $7.9 billion of other interest-earning assets, according to the company's release. The consumer banking company will include primarily private education loans, with assets totaling $9.9 billion.