Discover sells student loan portfolio to Carlyle, KKR for up to $10.8 billion.
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.
Your loan may have been transferred for reasons like private loans getting sold, a contract ending with the federal government or signing up for other programs like Public Service Loan Forgiveness (PSLF).
You may be eligible for forgiveness of the remaining balance of your Direct Loans after making 120 qualifying payments on those loans while employed full time by a qualifying public service employer(s).
What happened? 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.
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.
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.
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.
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.
Student loans will remain on your credit report until you pay them off, or they're removed seven years after you default.
What Discover's exit means for your student loan. Discover's student loan business is changing. According to Discover's website, “Discover will no longer accept new student loan applications after January 31, 2024.
(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- ...
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.
Discover sells student loan portfolio to Carlyle, KKR for up to $10.8 bln.
and Citigroup Inc. by U.S. credit-card loan volume. Capital One Financial Corp., the U.S. lender backed by Warren Buffett, is set to buy Discover Financial Services in a $35 billion deal that will bring together two of the biggest credit card firms and allow them to compete with other Wall Street behemoths.
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.
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.
Nelnet, one of the nation's largest student loan servicers, agreed to purchase a competitor student loan servicer, Great Lakes Higher Education Corp., for $150 million in an all-cash transaction.
Is Nelnet Federal or Private? Nelnet is primarily known as a federal loan servicer. However, Nelnet is a large company with several segments. Parts of its business offer private education loans and consumer loans.
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.
The 7-year Rule And Student Loans
According to Experian, once you start making payments, any late payments that are 7 years old will be erased from your credit report, but the rest of the account history will stay.
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.