Doubt cast on Sallie Mae deal

LONDON (CNNMoney.com) -- The group that agreed to buy Sallie Mae for $25 billion is seeking a lower price for the college loan provider, according to a published report.

The New York Times said Thursday the buyers want to renegotiate the price and may be willing to walk away from the deal if Sallie Mae (Charts, Fortune 500) doesn't agree to a lower price.

Private equity firms J.C. Flowers and Friedman Fleischer & Lowe agreed to buy Sallie Mae in April, with backing from Bank of America (Charts, Fortune 500) and JP Morgan (Charts, Fortune 500). The buyers face a $900 million break-up fee if they walk away from the deal.

The credit squeeze has put pressure on bankers and private equity firms to renegotiate leveraged buyout deals. Investor demand for risk remains tepid, which has made it difficult for banks to turn around and sell the loans they've already committed for deals in the debt markets.

Last month, Home Depot (Charts, Fortune 500) agreed to sell its wholesale supply unit to private equity firms for about 17 percent less than the $10.3 billion that had been previously agreed upon.

The Sallie Mae deal, in particular, has come under pressure because of student loan reforms proposed in Congress during the summer which would cut back on the amount of subsidies to student lenders.