What's happening with Discover student loans?

Asked by: Mr. Granville Blick Jr.  |  Last update: July 2, 2025
Score: 4.1/5 (49 votes)

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).

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.

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.

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.

What Everyone's Getting Wrong About Student Loans

30 related questions found

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.

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.

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.

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 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 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.

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.

Is Discover forgiving student loans?

Discover student loans are private student loans, which means they can't be forgiven.

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 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 Discover Bank safe now?

Yes. Discover Bank is an FDIC-insured bank owned and operated by Discover Financial Services. We offer online and mobile banking for a full suite of deposit products including checking, savings, money market, certificate of deposit, and IRA accounts.

Who bought out Discover?

Capital One's $35.3 billion all-stock deal to purchase Discover could make it the largest credit card issuer in the country, in addition to expanding both its digital banking presence and Discover's global payment network.

What will happen to my 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).

Why is Discover selling student loans?

The company's student-loan business has faced regulatory scrutiny in the past, reaching a consent order with the Consumer Financial Protection Bureau (CFPB) in 2015 after that regulator found that Discover had been misstating the minimum amounts due on billing statements along with tax information customers needed to ...

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.

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.

Will loans owned by 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.

How big is the Discover student loan portfolio?

As of June 30, 2024, the principal balance of the private student loan portfolio was approximately $10.1 billion.