Where did Discover student loans go?

Asked by: Keven Wehner  |  Last update: March 10, 2026
Score: 4.8/5 (52 votes)

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 does Discover no longer offer student loans?

Discover's interim CEO and President John Owen said that “Discover's Board regularly reviews the strategic fit of all of our businesses, with a focus on providing exceptional customer service and allocating resources to optimize returns.” After a regular review, it was “determined that exploring the sale and transfer ...

Who did Discover student loans go to?

Discover sells student loan portfolio to Carlyle, KKR for up to $10.8 billion.

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.

Why is Discover selling their student loans?

The student loan business has been a source of regulatory woes for Discover in recent years: The Consumer Financial Protection Bureau issued a consent order in 2015 alleging the company misstated minimum amounts due on billing statements for student loans, misstated tax information required for certain tax benefits and ...

Where do student loans go?

44 related questions found

Where did my Discover student loan go?

Most loans were transferred to Firstmark except for loans with an inactive status such as paid-off and charged-off loans. If your loan(s) was transferred, you should have received a communication by October 1, 2024. Please call Firstmark at 1-888-295-0910 if you haven't received any communication yet.

Why did my student loan get sold?

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.

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 loans are being 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.

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.

What type of loan is a Discover student loan?

Discover offers a wide range of private student loan options, including loans for undergraduate, graduate, MBA, law school, health professions, residency, and bar exam students. Parents can also apply on their own, and graduates can work with the lender to refinance existing loans.

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.

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.

Is there a penalty for paying off Discover student loans early?

There's never a penalty for prepaying your student loan. How do I calculate the loan balance? This information can be found online or on your paper statement.

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.

What is happening with student loans right now?

Now that the COVID-19 payment pause has ended, student loan payments have restarted. For most borrowers, the first payment after the payment pause ended was due in October 2023. Review important concepts, tips, and recommendations for repaying your student loans at Repaying Student Loans 101.

Do student loans go away after 20 years?

Under certain federal programs, it's possible to get your student loans forgiven after 20 years of qualified payments. Private student loans, however, typically don't have forgiveness options, regardless of how long you pay them.

Where did my student loan money go?

Typically, the school first applies your grant or loan money toward your tuition, fees, and (if you live on campus) room and board. Any money left over is paid to you directly for other education expenses.

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.

Do student loans affect your credit score?

Student loans are a type of installment loan, similar to a car loan, personal loan, or mortgage. They are part of your credit report, and can impact your payment history, length of your credit history and credit mix. Paying on time could help your score.