There is no way to refinance or consolidate your Discover student loans with the federal government to qualify for loan forgiveness — even if your loans were once federal, but you refinanced with a private lender.
Discover is no longer servicing student loans. The servicing of your Discover student loan(s) has transferred to Firstmark Services. Please contact Firstmark for questions, payments, and anything else related to your loan(s).
Comments Section You'll receive a letter confirming forgiveness. Before that you'd receive notice you'd hit 120, you'd get a letter telling you you've been identified for forgiveness and to expect X days, then your account would zero on the servicer, then on studentaid.gov.
Company Overview. Discover Bank is no longer accepting student loan applications. It had offered private student loans to students attending more than 2,400 colleges and universities.
Why is Discover exiting the student loan business? Discover is transferring the Discover Student Loans portfolio and the servicing of their loans to a third-party provider to focus their efforts on other key business objectives.
Any loans that are listed on your studentaid.gov account are federal student loans. If any loans on your credit reports are not listed on your studentaid.gov account, they are probably private student loans.
PSLF counts will continue to be adjusted each month until the IDR counts for all federally held FFEL Program and Direct Loans are adjusted in 2024. Your student loan servicer(s) will notify you directly after your forgiveness is processed.
Only federal Direct Loans can be forgiven through PSLF. If you have other federal student loans such as Federal Family Education Loans (FFEL) or Perkins Loans you may be able to qualify for PSLF by consolidating into a new federal Direct Consolidation Loan.
Discover Bank to Pay $18.5 M for Illegal Student Loan Servicing Practices. According to the Consumer Financial Protection Bureau (CFPB) “Discover created student debt stress for borrowers by inflating their bills and misleading them about important benefits,” said CFPB Director Richard Cordray.
Carlyle and KKR Strategic Partnerships Agree to Acquire Approximately $10.1 Billion Prime Student Loan Portfolio from Discover Financial Services | Business Wire.
The longer the missed payment is past due, the more it can hurt your score. The Federal Student Aid website states that if you miss a payment your loan is considered delinquent. After 90 days your loan servicer may report it to the three major credit bureaus.
Income-Driven Repayment (IDR) Forgiveness
If you repay your loans under an IDR plan, any remaining balance on your student loans will be forgiven after you make a certain number of payments over 20 or 25 years—or as few as 10 years under our newest IDR plan, the Saving on a Valuable Education (SAVE) Plan.
What student loans are not eligible for forgiveness? Private student loans, by definition, are private and are not eligible to be forgiven. These are loans the borrower owes to student loan providers and not the federal government.
It has also agreed to create a settlement fund of $979,500 (excluding administration costs and attorneys' fees) to compensate impacted DACA recipients, which was preliminarily approved by the U.S. District Court for the Northern District of California on February 29, 2024.
Borrowers need to create an account at StudentAid.gov to start the process, and then apply for a qualifying repayment plan before checking on the status of any loan forgiveness.
After at least 20 years of student loan payments under an income-driven repayment plan — IDR forgiveness and 20-year student loan forgiveness. After 25 years if you borrowed loans for graduate school — 25-year federal loan forgiveness.
Many student loan borrowers have an opportunity to receive full student loan cancellation or more credit towards cancellation. The U.S. Department of Education will conduct a one-time adjustment this summer , but you may need to take steps to qualify. The deadline to act is June 30, 2024. Here's what you need to know.
Any borrowers with loans that have accumulated eligible time in repayment of at least 20 or 25 years will see automatic forgiveness, even if they are not currently on an IDR plan.
Student loans disappear from credit reports 7.5 years from the date they are paid in full, charged-off, or entered default. However, education debt can reappear if you dig out of default with consolidation or loan rehabilitation. Student loans can have an outsized impact on your credit score.
You may notice your former servicer has cleared your loan account. For example, your loan balance may come up as “paid in full” on your former servicer's website or on your credit report. This does not mean you've received loan forgiveness. This is part of the loan transfer process.
Private student loans are usually only forgiven when the borrower becomes permanently disabled or dies—sometimes not even then. While there are several options for federal student loan cancellation and forgiveness, private programs for cancellation are less common.
Pay Off High-Interest Loans First
With this approach, you pay off your loans from the highest interest rate to the lowest. You make the minimum payments on each balance except the highest-rate loan. You also make an extra monthly payment based on how much you can put toward the debt.
Unfortunately, no. Because private student loans are not created by the federal government, they can't be forgiven like federal loans.