Is Capital One buying Discover student loans?

Asked by: Isabel Toy  |  Last update: March 3, 2025
Score: 4.6/5 (17 votes)

On Monday, Capital One announced its aim to buy Discover. While this could shake up the credit card world, it stands to have little impact for student loan borrowers. It's not currently clear that existing private student loans from Discover would transfer to Capital One through the acquisition.

Who is taking over Discover student loans?

Carlyle and KKR Strategic Partnerships Agree to Acquire Approximately $10.1 Billion Prime Student Loan Portfolio from Discover Financial Services | Carlyle.

Is Capital One still buying Discover?

Capital One's Acquisition of Discover

The transaction is expected to close in late 2024 or early 2025, subject to satisfaction of customary closing conditions, including regulatory approvals and approval by the shareholders of each company.

What is happening to Discover student loans?

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).

Are Discover student loans going to be forgiven?

Unfortunately, private student loan borrowers don't have access to the same benefits and repayment plan options that federal student loan borrowers have. Sallie Mae loans, Discover loans and other private student loans can't be forgiven.

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How will I know if my student loans are forgiven?

Your student loan servicer(s) will notify you directly after your forgiveness is processed. Make sure to keep your contact information up to date on StudentAid.gov and with your servicer(s). If you haven't yet qualified for forgiveness, you'll be able to see your exact payment counts in the future.

What to do if I can't pay my Discover student loans?

It's in your best interest to take every step possible to avoid missing payments.
  1. Contact your student loan servicer. ...
  2. Look into federal student loan forgiveness. ...
  3. See if your employer will reimburse you for student loan payments. ...
  4. Reduce your expenses. ...
  5. Increase your income. ...
  6. Change your repayment plan.

Is Nelnet buying Discover student loans?

07/25/2024 12:52 P.M. Discover Financial Services will sell a portfolio of private student loans to Carlyle and KKR for up to $10.8 billion, the credit card company announced last week. Firstmark Services, a division of Nelnet, will assume responsibility for servicing the portfolio upon the sale.

Why did all my student loans disappear?

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.

What is the lawsuit against Discover student loans?

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.

Why are so many Capital One banks closing?

data. The bulk of its deposit growth has come via Capital One 360, its digital-only arm that it acquired from ING Direct in 2012. Paul Schaus, the CEO of the consulting firm CCG Catalyst in Phoenix, said that Capital One has been able to sharply reduce its branch count because its “digital strategy is successful.”

Is Capital One safe right now?

It is FDIC-insured, which means your money is insured up to $250,000 for individual accounts and $500,000 for joint bank accounts in case Capital One 360 fails. Capital One 360 encrypts your data to keep your information secure.

What bank owns Capital One?

Capital One is a subsidiary of Capital One Financial Corporation, a U.S.-based bank holding company headquartered in McLean, Virginia and founded in 1994.

Is Discover merging with Capital One?

(December 19, 2024) Capital One (NYSE: COF) announced today that it received approval from the Office of the Delaware State Bank Commissioner on December 18, 2024, to complete its previously announced acquisition of Discover Financial Services (NYSE: DFS) and its subsidiary bank, Discover Bank, which is a Delaware- ...

Should I consolidate my Discover student loans?

Consolidating your loans can help you better manage them, so you can work toward paying them off. And in some cases, you may even be able to lower your interest rate or your monthly payment.

Did they wipe out student loan debt?

To date, the Biden-Harris Administration has approved $146 billion in student debt relief for 4 million Americans through more than two dozen executive actions. That includes fixing Public Service Loan Forgiveness and Income-Driven Repayment plans, so borrowers finally get the relief they are entitled to under the law.

What is the 7 year rule for student loans?

Both federal and private student loans fall off your credit report about seven years after your last payment or date of default. You default after nine months of nonpayment for federal student loans, and you're not in deferment or forbearance.

Are student loans forgiven at age 70?

Are student loans forgiven when you retire? No, the federal government doesn't forgive student loans at age 50, 65, or when borrowers retire and start drawing Social Security benefits. So, for example, you'll still owe Parent PLUS Loans, FFEL Loans, and Direct Loans after you retire.

At what age do student loans get written off?

At what age do student loans get written off? There is no specific age when students get their loans written off in the United States, but federal undergraduate loans are forgiven after 20 years, and federal graduate school loans are forgiven after 25 years.

Is Discover student loans being canceled?

After January 2024, you can no longer apply for a Discover student loan. A third-party provider will be overtaking Discover's student loans portfolio.

Why was my student loan sold to Nelnet?

Why do loans get switched or transferred to a different servicer? Sometimes, we need to transfer loans from one servicer to another—for example, when a servicer's contract with us ends. Even if we transfer your loans to a new servicer, we (the U.S. Department of Education) still own your loans.

Did Discover student loans get bought out?

Discover sells student loan portfolio to Carlyle, KKR for up to $10.8 billion.

Why is Discover not accepting student loans anymore?

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.

What happens if you never pay off your student loans?

If you default on your student loan, that status will be reported to national credit reporting agencies. This reporting may damage your credit rating and future borrowing ability. Also, the government can collect on your loans by taking funds from your wages, tax refunds, and other government payments.

Can I pay off my Discover student loan with a credit card?

There are bills you can't typically pay with a credit card, like mortgage, student loan, and auto loan payments. But there are ways to utilize your credit card to pay these and other expenses. Some credit cards allow you to take a cash advance, where you borrow cash against your credit limit.