What is happening with Discover student loans?

Asked by: Heather Williamson  |  Last update: August 10, 2025
Score: 4.6/5 (37 votes)

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).

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.

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.

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.

Why have my student loans disappeared?

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.

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43 related questions found

Why are my student loans suddenly paid off?

If your student loan balance is suddenly showing zero, some of the many reasons could be: Your federal student aid or private student loans were forgiven. You've completed one of the student loan forgiveness programs. You qualify for Public Service Loan Forgiveness (PSLF), or.

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.

Is Discover cancelling student loans?

What Discover's exit means for your student loan. Discover's student loan business is changing. According to Discover's website, “Discover will no longer accept new student loan applications after January 31, 2024.

What happened to my Discover student loan?

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).

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.

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.

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- ...

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.

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.

Who now owns my student loans?

The loan holder of a Direct Loan is the U.S. Department of Education. A loan servicer is a company we assign to handle the billing and other services on your federal student loan on our behalf, at no cost to you.

Why did all my student loans disappear?

Do Federal Student Loans Ever Go Away? Federal student loans may come off your credit report either seven and a half years after the default or seven years after the loan was transferred to the Department of Education. In both cases, the strikes on your credit report will disappear only if you start to make payments.

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.

How will I know if my student loans are Cancelled?

You will receive notification of your loan discharge via email, mail and/or your online loan servicing account (depending how your communication preferences are set). It will also be reflected when you log in to the Federal Student Aid site using your FSA ID.

What happens to my credit if student loans are Cancelled?

Loan forgiveness doesn't remove accounts from a credit report. Instead, the loans will be paid in full, and a borrower's debt-to-income (DTI) ratio will improve.

Is Discover facing regulatory scrutiny to exit student lending?

The company plans to stop accepting new student loan applications starting in February. Discover Financial Services is exiting the student loan business after close to a decade of regulatory headaches stemming from improper loan servicing.

Can I pause my Discover student loans?

You may be able to postpone your private student loan payments through deferment. During a deferment period, interest will continue to accrue on your loan, unless otherwise required by applicable law.

What happens if you never pay off 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.

How to get 100% student loan forgiveness?

If you work full time for a government or nonprofit organization, you may qualify for forgiveness of the entire remaining balance of your Direct Loans after you've made 120 qualifying payments—i.e., at least 10 years of payments. To benefit from PSLF, you need to repay your federal student loans under an IDR plan.