Who is taking over Discover student loans?

Asked by: Magdalen Moen I  |  Last update: April 14, 2025
Score: 5/5 (34 votes)

Carlyle and KKR Strategic Partnerships Agree to Acquire Approximately $10.1 Billion Prime Student Loan Portfolio from Discover Financial Services | Carlyle.

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).

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.

What did Discover student loans transfer to?

--(BUSINESS WIRE)-- Discover Financial Services (NYSE: DFS) announced today that Discover Bank (“Discover”) has entered into an agreement to sell its private student loan portfolio to one or more strategic partnerships comprised of investment vehicles and accounts managed by Carlyle (NASDAQ: CG) and KKR (NYSE: KKR) , ...

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36 related questions found

Can Discover student loans 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 are my student loans being transferred?

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.

Who is Discover selling their loans to?

A sign sits at the entrance of the Discover Financial Services corporate headquarters campus on February 19, 2024 in Riverwoods, Illinois. Discover Financial Services will sell a portfolio of student loans to buyout giants Carlyle and KKR for up to $10.8 billion, the credit card-focused lender said on Wednesday.

What happens if Capital One buys Discover?

If your Capital One credit card is among those that get transitioned to Discover — or even if the opposite happens — you can expect to receive an updated credit card and, more importantly, a new account number.

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.

Why is my student loan going to Nelnet?

FSA uses servicers (private companies) like Nelnet to manage billing, questions, and payments, and to help you enroll in the best repayment plan for you.

Who bought Discover student loans?

Carlyle and KKR Strategic Partnerships Agree to Acquire Approximately $10.1 Billion Prime Student Loan Portfolio from Discover Financial Services | Carlyle.

Will student loans through 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.

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.

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.

Do student loans fall off your credit report?

Student loans will remain on your credit report until you pay them off, or they're removed seven years after you default. If you're trying to buy a home, but your student loans are killing your credit score, you can try to remove the loans because the loan servicer or collection agency reports inaccurate information.

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.

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 will Capital One do with Discover?

Our acquisition of Discover is a singular opportunity to bring together two very successful companies with complementary capabilities and franchises, and to build a payments network that can compete with the largest payments networks and payments companies," said Richard Fairbank , founder, Chairman and Chief Executive ...

Is Discover student loans shutting down?

Discover will stop accepting applications for student loans starting Feb. 1, 2024.

Who is the debt collector for Discover?

While Discover may refer a consumer account for the third party collection, they almost exclusively use Zwicker & Associates P.C. to collect on debts for them.

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.

Who is taking over MOHELA?

As part of its long-term vision for a new online environment for borrowers, the U.S. Department of Education (ED) will begin transitioning the servicing of the PSLF Program and the TEACH Grant Program from its sole interim PSLF servicer, MOHELA, to ED via StudentAid.gov beginning May 1, 2024.

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.