Advertiser Disclosure

Last update: July 24, 2024

3 minutes read

Discover Ending Student Loan Services

Navigate Discover’s post-student loan era with expert advice; explore your options confidently and secure your financial future.

By Brian Flaherty, B.A. Economics

Edited by Rachel Lauren, B.A. in Business and Political Economy

Learn more about our editorial standards

By Brian Flaherty, B.A. Economics

Edited by Rachel Lauren, B.A. in Business and Political Economy

Learn more about our editorial standards

Discover Financial Services is doing something new—they're stopping their student loan services. They want to sell their student loan portfolio, and this matters for anyone thinking about getting financial aid. Let’s dive into the details of this big change in the student loan game.

Key takeaways

Discover Financial Services is stopping its student loan business, so people need to look for different financial options
Refinancing is a smart choice to reduce monthly payments and overall debt
Checking out other private student loan lenders, not just Discover, gives you access to different interest rates and special programs

Discover is ending its student loan services

Starting from February 1, 2024, Discover won't be offering student loans anymore. If you already have a loan, don't worry—your payments stay the same. Your loan is just moving to a different company, and we're not sure when that will happen yet.

Flexible repayment terms

When things get tough, Discover has your back. If you're facing a hard time, they offer some options to make repaying easier. In addition to deferment and forbearance programs, Discover also offers payment extension options if you just need a little extra time to catch up.

Considering other student loan options

1. Refinancing loans

Explore Refinancing Options

If you're looking to leave Discover behind, refinancing is a helpful tool. Combine and refinance with a new lender to get lower monthly payments, a fresh interest rate, and possibly better terms.

2. Exploring other lenders

Explore Other Private Student Loan Lenders

Step into the world of student loans beyond Discover. Banks, credit unions, and online lenders are out there, each with their own set of interest rates. Some even have special loans for specific programs!

3. Credit score check

Refinancing requires a good credit score or a co-signer. Make sure you're eligible, then compare options to find the best fit for you.

How TuitionHero can help you

We at TuitionHero are here to help you after Discover's exit from student loans. We focus on Private Student Loans, Student Loan Refinancing, Scholarships, FAFSA Help, and Credit Card Offers. Worried about the gap left by Discover? No need to worry. We'll smoothly guide you through other options, making the transition easy with plenty of choices just for you. Trust us to help you with your educational finances in a simple way.

Final thoughts

As we wrap up with Discover's student loans, TuitionHero is here for you in the world of college finance. We've got different loan choices, ideas for refinancing, help with scholarships, support for filling out FAFSA, and tips about credit cards. Think of it as a new start, not an ending, with TuitionHero by your side for financial support in your academic journey.

Frequently asked questions (FAQ)

Discover has decided to discontinue its student loan services as part of their business strategy. They’re no longer offering new student loans, though their existing borrowers will still be on the hook for their current loans (which may eventually be held by another firm)

If you already have a student loan with Discover, it's crucial to check your account and understand the terms. Consider reaching out to Discover's customer service for specific information about your loan. If you’re not interested in having your loan switch hands to a creditor you don’t know, you can explore refinancing options to make sure you have a smooth transition. Otherwise, feel free to stick with your current loan.

If you currently have a student loan with Discover, you don’t necessarily need to find an alternative. Your payments will stay the same, albeit with a different servicer. However, borrowers should contact Discover to understand any specific deadlines or recommendations they may have.

Discover's decision to end student loan services shouldn’t directly impact your credit score if you continue to make timely payments on your existing loan. However, it's essential to stay informed about your credit status and keep track of any changes.

Source

tedt

Author

Brian Flaherty

Brian is a graduate of the University of Virginia where he earned a B.A. in Economics. After graduation, Brian spent four years working working at a wealth management firm advising high-net-worth investors and institutions. During his time there, he passed the rigorous Series 65 exam and rose to a high-level strategy position.

Editor

Rachel Lauren

Rachel Lauren is the co-founder and COO of Debbie, a tech startup that offers an app to help people pay off their credit card debt for good through rewards and behavioral psychology. She was previously a venture capital investor at BDMI, as well as an equity research analyst at Credit Suisse.

At TuitionHero, we're not just passionate about our work - we take immense pride in it. Our dedicated team of writers diligently follows strict editorial standards, ensuring that every piece of content we publish is accurate, current, and highly valuable. We don't just strive for quality; we aim for excellence.

While you're at it, here are some other college finance-related blog posts you might be interested in.

8 minutes read

What Is a Guaranty Agency?

What is a guaranty agency and how do they prevent student loan defaults? Learn the key roles of these agencies, including default aversion strategies and financial literacy programs.

Learn More