What is the lawsuit against Discover student loans?

Asked by: Eda Durgan  |  Last update: May 28, 2025
Score: 4.5/5 (57 votes)

Specifically, the class action complaint alleged that the defendants made false and/or misleading statements and/or failed to disclose that: (i) Discover maintained deficient risk management and compliance procedures; (ii) as a result, Discover, among other things, failed to comply with applicable student loan ...

What happens if I don't pay my Discover student loans?

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.

How much is Discover paying for the class action lawsuit?

Discover is set to pay $1.2 billion to settle class-action lawsuit claims related to a card misclassification issue disclosed last year, Discover said in a regulatory filing last week.

What's 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).

Is Discover forgiving student loans?

Sallie Mae loans, Discover loans and other private student loans can't be forgiven.

What Everyone's Getting Wrong About Student Loans

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Why did my Discover student loans disappear?

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.

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.

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.

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 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.

What do I do if discover is suing me?

If you're being sued for a debt, your first step is to decide if you want to respond and defend yourself by arguing that you either don't owe the money or that you don't owe as much as the debt collector claims. Or, you can choose to do nothing and the judge will make a decision about the case without your input.

Is it worth joining a class action lawsuit?

Reasons to Join Class Action Lawsuits

If your damages are relatively small, pursuing an individual lawsuit may not be cost-effective. Civil lawsuits involving multiple plaintiffs often have access to greater resources for investigations, evidence gathering and legal expertise, which can strengthen your case.

Did Discover get sued?

Discover Financial Services' former head of environmental and social governance is suing the credit card company, claiming it fired him after he supported a Black employee who said the firm needed to make improvements in its diversity and equity work.

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 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.

Is Discover student loans private or federal?

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.

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 is Discover not accepting student loans anymore?

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.

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.

Is it too late for student loan forgiveness?

You can still apply for Student Loan Forgiveness in 2024. Despite the Supreme Court striking down Biden's initial plan to cancel up to $20,000 in student loans, the president has introduced other programs that have provided $167.3 billion in student loan forgiveness to over 4 million borrowers.