What will happen to my Discover student loans?

Asked by: Richie Champlin  |  Last update: October 12, 2025
Score: 4.6/5 (12 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).

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.

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.

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.

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28 related questions found

What is happening with Discover student loans?

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.

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.

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.

Why are my student loans switching 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.

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.

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.

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.

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.

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.

Will loans with Nelnet be forgiven?

Teachers with loans through Nelnet can pursue teacher loan forgiveness. Teachers may qualify to have a maximum of $17,500 or $5,000 in student loans forgiven, depending on the subject area taught, if specific requirements are met.

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.

Can you move your student loan to another lender?

You can refinance private student loans or a mix of private and federal loans. By refinancing, you can switch your loans to another provider. And if you have good credit and stable income — or a creditworthy co-signer — you may qualify for a lower rate and different repayment terms, giving you a lower monthly payment.

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 will happen 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).

Can Discover student loans be forgiven?

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.

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.

Who took 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.

Can Discover student loans be refinanced?

Discover Bank is no longer accepting new student loans, but your ability to refinance existing loans remains unaffected. You benefit from refinancing if your interest rate is over 8%. Most lenders will require a credit score of at least 700 to consider you eligible for refinancing.

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.