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).
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.
Capital One CEO and Chairman, Richard Fairbank. Capital One's recently announced $35.3 billion acquisition of Discover Financial isn't just about getting bigger — gaining "scale" in Wall Street-speak — it's a bid to protect itself against a rising tide of fintech and regulatory threats.
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 ...
Capital One's acquisition of Discover, valued at over $35 billion, will make the combined company the largest card issuer in the U.S. The deal will position Capital One with approximately $250 billion in card balances, reflecting a 22% increase in market share.
Fitch Affirms Discover Financial at 'BBB+'; Outlook Stable. Fitch Ratings - New York - 21 Apr 2023: Fitch Ratings has affirmed Discover Financial Services' (DFS) and Discover Bank's ratings, including their Long-Term Issuer Default Ratings (IDRs), at 'BBB+'. The Rating Outlook is Stable.
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.
Your card may not get approval if you've reached your credit limit, or if you attempt a purchase that exceeds your available credit. A large purchase that doesn't fit your spending patterns may appear suspicious to your credit card company, so they may decline the transaction.
The Probability of Bankruptcy of Discover Financial Services (DFS) is 19.3% . This number represents the probability that Discover will face financial distress in the next 24 months given its current fundamentals and market conditions.
Discover sells student loan portfolio to Carlyle, KKR for up to $10.8 billion.
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.
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.
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.
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.
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.
Merchants Pay More
It may come as no surprise that the reason many merchants opt-out of accepting Discover cards (and American Express, for that matter) is about the bottom line. The Discover card is also like American Express in that they both charge a bit more to store owners to accept their cards.
Key Points: You need to notify your credit card company to cancel a credit card. Canceling a credit card can impact your credit score because it will change your credit utilization ratio. A canceled credit card account can stay on your credit history and credit report for up to ten years.
Some local businesses and restaurants -- that is, those that aren't franchised or part of national brands -- won't accept Discover credit cards, mainly because the processing fees are slightly higher than Mastercard and Visa.
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.
(DBRS Morningstar) confirmed the ratings of Discover Financial Services (Discover, or the Company), including the Company's Long-Term Issuer Rating of BBB (high). At the same time, DBRS Morningstar confirmed the A (low) ratings of its banking subsidiary, Discover Bank (the Bank). The trend for all ratings is Stable.
Costco. Costco only accepts Visa credit cards at its warehouses. However, if you order from Costco through Uber Eats or Instacart, you can charge the purchase to Discover. Ordering Costco online could be more expensive, as you'll pay delivery, processing fees, tip to the driver, and a markup on Costco's goods.
Benefits of Liquidity and Safety (FDIC Insured)
These accounts, especially those provided by reputable banks and credit unions like Discover Bank, are FDIC insured, offering protection up to $250,000.