What is happening to Discover student loans?

Asked by: Crystal Bernhard  |  Last update: March 9, 2025
Score: 4.8/5 (53 votes)

Discover Financial Services will no longer accept student loan applications as of Feb. 1, 2024, after announcing in November 2023 that it was going to sell its student loans portfolio and transfer the servicing of these loans to a third-party provider.

What's going on with Discover student loans?

What happened with my 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 away?

According to Discover's website, “Discover will no longer accept new student loan applications after January 31, 2024.

Where did Discover student loans go?

Discover sells student loan portfolio to Carlyle, KKR for up to $10.8 billion. A sign sits at the entrance of the Discover Financial Services corporate headquarters campus on February 19, 2024 in Riverwoods, Illinois.

What company 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 | Business Wire.

PSLF Updates and Options: December 2024 | Public Service Loan Forgiveness

20 related questions found

Is Nelnet taking over Discover student loans?

In January, the company announced Nelnet would take over servicing of the loan portfolio as it continued to look for a purchaser. The following month, Capital One said it would acquire Discover for $35.3 billion, pending regulatory approvals.

Is Capital One buying Discover student loans?

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.

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- ...

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.

Are Discover student loans private or federal?

Discover student loans is an online private student loan lender that has one of the largest amounts of loan options available to borrowers.

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.

Is Discover going away?

Hurd expects Capital One to continue operating both brands somewhat autonomously for some time. "Capital One probably won't alienate Discover's large customer base by discontinuing the Discover card brand," he said. Hurd does expect small changes to products after the acquisition.

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.

Is Discover canceling student loans?

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.

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.

What is going on with my student loans?

The Supreme Court ruled we could not implement pandemic-related student loan debt relief, so we can't use your application from 2022. The new proposed regulations are different, and we're currently working to finalize their terms, including who may receive loan forgiveness.

How will I know if my student loan will be 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.

At what age do student loans get written off?

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.

Who is buying Discover?

Capital One's recently announced $35.3 billion acquisition of Discover Financial isn't just about getting bigger — gaining "scale" in Wall Street-speak — it's a bid to protect itself against a rising tide of fintech and regulatory threats.

Is Capital One owned by Wells Fargo?

Capital One is an independent bank not owned by any other financial institution. It operates as a publicly traded company headquartered in McLean, Virginia.

Why is Discover not accepting student loans?

Discover faced regulatory scrutiny and consent orders in 2015 and 2020 due to improper loan servicing practices—including issues with validating payments, canceling payments without notification, and misstating minimum payments.

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.

What will happen to Discover Bank?

Capital One and Discover expect to close on their merger early next year. The merger, first announced in February, would bring together two financial institutions that have distinguished themselves in part by targeting consumers whose credit falls below prime levels. Credit scores from 660 to 719 are considered prime.