JPMorgan Chase to hire 150 Nelnet loan workers

(Recasts; adds Congressional activity, closing prices)

NEW YORK, Sept 7 (Reuters) - JPMorgan Chase & Co (JPM.N), which has one of the largest U.S. student lending businesses, said on Friday it will hire up to 150 Indianapolis-based workers from Nelnet Inc (NNI.N) to expand its loan-origination operations.

The third-largest U.S. bank said its Chase Education Finance unit has signed a letter of intent to offer jobs to the workers and will also sublease Nelnet offices in Indianapolis. It expects to add the employees late this year.

Nelnet, a student loan company, announced plans on Thursday to cut 400 jobs, or 12 percent of its work force, citing expected changes in lending laws that could reduce lenders' profits.

Both houses of Congress voted overwhelmingly on Friday to cut government subsidies to student lenders such as JPMorgan, Nelnet and Sallie Mae (SLM.N) and use the money to boost student aid by $20 billion.

The White House has said President George W. Bush will sign the bill into law. The bill is expected to shake up an $85 billion annual business following months of scandals involving kickbacks and conflicts of interest implicating lenders and college officials.

JPMorgan said it oversees more than $12 billion of student loans. In Friday trading on the New York Stock Exchange, JPMorgan shares closed down 69 cents at $43.52, while Nelnet shares fell 35 cents to $17.77.

(Reporting by Jonathan Stempel; additional reporting by Kevin Drawbaugh in Washington, D.C.)

((Editing by John Wallace/Andre Grenon; Reuters Messaging: jon.stempel.reuters.com@reuters.net +1 646 223 6317)) Keywords: JPMORGANCHASE NELNET/

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