Lana Oconnell
Discover no longer offers or services student loans, and existing loans have been transferred to Firstmark Services. However, Discover still provides customer support for previous student loan customers, including those with queries about early repayment. Discover offers a range of temporary repayment options, including the Early Repayment Assistance Program, which allows borrowers to postpone monthly payments for up to three billing cycles.
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What You'll Learn
Discover no longer offers student loans
Discover® no longer offers or services student loans. The company stopped accepting applications for student loans starting on February 1, 2024, after announcing in November 2023 that it would sell its student loans portfolio and transfer the servicing of these loans to a third-party provider.
If you have a Discover student loan, your loan and payments won't be affected for now, and you should keep an eye out for any changes. Discover will continue to service existing loans, and current customers should not expect any changes. All current loans will eventually be serviced by a third-party provider that has yet to be announced.
If you were considering Discover for your private student loan needs, you might want to think about other options. Be sure to exhaust all your other options first before looking for another private student loan lender. Always look for free money first, such as scholarships, grants, work-study/assistantship positions, and payment plans. There are several types of private student loans to choose from, such as degree-specific loans, international student loans, bad-credit loans, state-specific loans, and parent loans.
If you have paid off, charged off, or written off loans that did not transfer to Firstmark, you can contact Discover for your statements and tax forms.
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Explore third-party websites for student loan options
Discover no longer offers or services student loans. However, if you have existing student loans with Discover, you can contact Firstmark Services to access your account or call their helpline for any queries regarding payments, tax documents, and other loan-related documents.
If you are looking for student loan options, you can explore third-party websites for private student loan options. Private student loans are necessary when there is a gap between the financial aid package received and what a student can afford to pay. Federal loans are generally the most affordable option, but private student loans can be used to fill any funding gaps.
Finaid, for example, offers private student loans with great rates and flexible repayment options. Their simple application process takes around 3 minutes to complete, and they provide a student loan calculator and a free credit pre-qualification tool to help you decide on a repayment plan. They also offer a loan payment calculator to give you an estimate of what repayment will look like after graduation.
Another option is Sallie Mae, which provides a range of student loans for undergraduate and graduate degrees, as well as specialty degrees. They do not charge a loan origination fee, and enrolling in auto-pay results in a discounted interest rate.
Additionally, College Ave Student Loans offer loans for undergraduates, graduates, and parents, with various repayment options and competitive interest rates. Their application process is quick, and they also provide instant credit decisions.
It is important to research and compare different private student loan options to find the one that best suits your needs and criteria.
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Temporary repayment options to manage loans
Discover® no longer offers or services student loans. However, if you have a Discover student loan that has not been transferred to Firstmark, you can contact Discover for your statements and tax forms. You can also contact Firstmark Services to access your account or call 1-888-295-0910 for questions regarding payments, tax documents, and other loan-related documents.
Part-time degree program
Consider enrolling in a part-time degree program while continuing to work full-time. By taking a few credits per semester and setting up a payment plan with your school, you can potentially defer your loan payments and gain some financial breathing room. Just be aware of any requirements or restrictions that may be associated with tuition assistance from your employer.
Forbearance
Forbearance may be an option to consider if you're struggling with high-interest credit card debt. It can help you rebuild your credit score and potentially refinance your student loans. However, be aware that your monthly payments may increase after the forbearance period, and Discover may not be able to provide an estimate of the increase.
Debt consolidation
If you have multiple high-interest debts, such as credit cards or loans, you may benefit from consolidating them into a single loan with a lower fixed rate. This can lower your monthly payments and reduce the amount of interest you pay over time. Discover offers personal loans that can be used for various purposes, and they can send funds directly to your creditors.
Repayment assistance programs
Discover offers repayment assistance programs intended to provide relief with monthly personal loan payments. You can call them at 1-877-256-2660 to determine your eligibility. These programs can help you make lower payments temporarily or delay past-due amounts to the end of the loan term, giving you time to get back on track financially.
Credit and debt counselling
Discover also provides credit and debt counselling services to help you manage your money and provide solutions to financial issues. You can call 1-800-388-2227 to speak with a certified credit counsellor and explore options specific to your situation.
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Student loan debt reduction and financial relief
Discover no longer offers or services student loans. The company merged with Capital One in May 2025, and existing loans were transferred to Firstmark Services in 2024.
If you still hold a Discover student loan, there are several options for debt reduction and financial relief. Firstly, you can consider refinancing your loan. This involves replacing your current loan with a new one, typically offering a lower interest rate, a longer repayment term, or both. Refinancing can significantly reduce the overall cost of the loan, especially when compared to forbearance, which merely delays payments. To qualify for refinancing, you usually need a credit score in the low 700s, steady employment, and sufficient income to cover your debts. Applying with a cosigner is an option if you do not meet these criteria.
Another option is to consolidate your debt. Discover offers debt consolidation loans, which can lower your monthly payment or, under certain circumstances, decrease the amount of interest you pay. This depends on your financial situation and your ability to make monthly payments. With a student consolidation loan, Discover will send funds directly to your current lenders.
If you are facing challenges in making your monthly payments, Discover offers several temporary repayment assistance options. These include:
- Deferment: This allows you to temporarily postpone monthly payments under specific conditions, such as being enrolled in school, on military duty, or undergoing residency.
- Early Repayment Assistance Program: This lets you temporarily postpone your monthly payments for up to three billing cycles, mainly for borrowers within the first three months of their repayment period.
- Hardship Assistance Program: If you cannot afford your monthly payment, this program offers a temporary reduction in the interest rate.
- Payment Extension Program: If you are past due on your loan, this program helps you become current by making three monthly payments or the equivalent within three months.
Additionally, in the case of permanent disability, death of the borrower, or similar unfortunate events, loan forgiveness may be available.
Finally, if you are left with no other alternatives, you can consider negotiating directly with Discover or a collection agency to lower the principal balance you owe. Defaulting on your loan will damage your credit score and lead to collection actions, but it can result in significant debt reduction if you can reach a settlement.
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Student loan refinancing and lower interest rates
Discover no longer offers or services student loans. The company merged with Capital One in May 2025, and existing loans were transferred to Firstmark in 2024.
Student loan refinancing is when you take out a new private loan to pay off your existing loan. It may be a good option if you qualify for a lower interest rate or need to reduce your monthly payments. A lower interest rate could help you save money on interest over the life of the loan, pay off your debt faster, or reduce your monthly payments.
To qualify for student loan refinancing, lenders typically require a credit score of around 670 or higher, a steady and verifiable income, and a low debt-to-income ratio. They will also consider the details of your existing loans, such as your remaining balances and the schools you attended. If you don't meet the qualifications on your own, you can apply with a creditworthy cosigner.
Before refinancing a federal student loan, keep in mind that you will lose access to protections only available to federal student loan borrowers, such as income-driven repayment plans and loan forgiveness. If you decide to refinance federal loans, you should have stable personal finances and emergency savings.
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Frequently asked questions
Yes, Discover does not charge prepayment penalties, so you can pay off your loan as early as you like.
Discover offers several repayment assistance options, including the Hardship Assistance Program, which offers a temporary reduction in the interest rate, and the Early Repayment Assistance Program, which lets you temporarily postpone your monthly payments for up to three billing cycles.
If you default on your loan, you may be able to negotiate directly with Discover or a collection agency to lower the principal balance you owe and make payments towards that reduced loan balance. However, defaulting will negatively impact your credit score and could lead to collection actions and wage garnishment.
