Janice Lozano
Discover Student Loans no longer offers or services student loans as of January 31, 2024. Existing customers can still log in to track their payments and access billing statements and tax documents. Discover offered a variety of loan options for undergraduate and graduate students, including rewards for good grades and discounts for automatic and interest-only payments. Students seeking alternative lenders can explore other student loan providers that offer similar rates, terms, and benefits.
| Characteristics | Values |
|---|---|
| Student Loans | Discover no longer offers or services student loans as of January 31, 2024. |
| Existing Student Loan Customers | Existing customers can access their accounts through Firstmark Services or by calling their helpline. |
| Rewards | Discover offers rewards for good grades, which are worth 1% of the disbursed loan. |
| Discounts | Discounts are available for automatic payments and interest-only payments during school. |
| Fees | Discover does not charge any fees, including late payment fees. |
| Repayment Options | Discover offers three repayment options but only one repayment term, which can vary by loan. |
| Student Credit Cards | Discover offers student credit cards that allow users to earn cash back rewards and build a credit history. |
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What You'll Learn
Discover no longer offers student loans
Discover's decision to exit the student loan business may have been influenced by a desire to focus on its core banking products and other business priorities. The company encourages borrowers to explore other options, such as federal student loans, grants, scholarships, work-study programs, and payment plans, before resorting to private student loans.
If you are seeking alternative lenders, there are several student loan providers that offer similar rates, terms, and benefits to Discover. These include Sallie Mae, which provides loans for undergraduate and graduate students at competitive rates and with flexible repayment options. SoFi is another option that offers online graduate and undergraduate financing with flexible repayment terms and competitive rates.
For those with existing Discover student loans, you can visit Firstmark Services to access your account or call their customer service line for questions regarding payments, tax documents, and other loan-related matters. Discover has also merged with Capital One N.A., so you can continue to manage your Discover and Capital One accounts as usual. However, note that Discover benefits do not transfer to Capital One accounts and vice versa.
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Current loans will be serviced by a third party
Discover® no longer offers or services student loans. The company stopped accepting new student loan applications on January 31, 2024, and transferred its student loan portfolio and servicing to a third-party provider. This means that current loans will be serviced by a third party, although the provider has not yet been announced.
If you have a Discover student loan, you can still log in to track the status of your payments through the lender’s servicing portal. Billing statements and tax documents will be available in the Discover Student Loans Account Center until April 2025. For questions regarding payments, tax documents, and other loan-related documents, you can visit Firstmark Services or call 1-888-295-0910.
Discover student loans that were transferred to Firstmark in 2024 should be directed there for inquiries. For paid off, charged off, or written off loans that did not transfer to Firstmark, contact Discover directly for statements and tax forms. Discover benefits do not transfer to Capital One accounts and vice versa.
Discover student credit cards are still available and allow users to earn cash back rewards while building their credit history.
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Student loan alternatives
Discover Student Loans no longer offers or services student loans. Existing customers can still log in to track their payments and access billing statements and tax documents. If you are looking for alternative student loan options, there are several lenders that offer similar rates, terms, and benefits.
Grants
Grants are typically disbursed to the school, but some programs may provide funds to students for living expenses. Most grants do not need to be repaid, but a service commitment may be required. For example, TEACH grant recipients must commit to teaching at an approved school for at least four years; otherwise, their grants are converted to loans with interest.
Scholarships
Scholarships are financial awards that do not need to be repaid and are usually based on a student's grades, skills, or abilities. Scholarship programs may have specific requirements, such as maintaining a minimum GPA.
Work-Study Programs
Work-study programs allow you to work part-time and earn money to pay for college. The federal work-study program is open to undergraduate, graduate, and professional students enrolled full- or part-time with demonstrated financial need.
Part-Time Jobs
If you do not qualify for work-study, you can consider a part-time job to earn money in your spare time to pay for tuition, fees, books, and other expenses. Paid internships or apprenticeships can also provide income while offering valuable experience related to your field of study.
Personal Savings
Using personal savings or a 529 plan is another alternative to student loans. A 529 plan is a tax-advantaged way to save for college. However, this option may require delaying your education or supplementing your savings with student loans if you do not have sufficient funds.
Federal Student Loans
If you have not received enough financial aid, you can consider borrowing additional federal student loans. If you are a dependent student, your parent can apply for a Direct PLUS Loan. Graduate or professional students enrolled at least half-time may also be eligible for a Direct PLUS Loan.
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Student credit cards
Discover no longer offers or services student loans. Existing customers can still log in to track the status of their payments through the lender’s servicing portal. Billing statements and tax documents will be available in the Discover Student Loans Account Center until April 2025.
Now, here's some information on student credit cards:
Some of the best student credit cards include the Capital One Quicksilver Student Cash Rewards Credit Card, the Bank of America® Travel Rewards Credit Card for Students, and the Capital One Savor Student Cash Rewards Credit Card. When choosing a student credit card, consider factors such as annual fees, foreign transaction fees, rewards programs, and interest rates. It is recommended to pay your credit card bill in full every month to avoid interest charges and maintain a good credit score.
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Student loan lenders
Discover Student Loans no longer offers or services student loans as of January 31, 2024. Existing customers can still log in to track their payments and access billing statements and tax documents until April 2025. Discover benefits, however, do not transfer to Capital One accounts following the merger.
Discover offered loans for undergraduate and graduate students with no fees, multi-year approval, rewards for good grades, and discounts for automatic payments and interest-only payments during school. Students who maintained a GPA of 3.0 or higher were eligible for a cash reward of 1% of their loan balance. Discover also offered specialty graduate and professional loans with varying interest rates, allowing MBA, law, and medical students to save money on interest.
Students seeking alternative lenders can consider the following options, which offer similar rates, terms, and benefits:
- Sallie Mae: Provides loans for undergraduate and graduate students up to the full cost of attendance at competitive rates. Undergraduate borrowers can choose repayment terms of up to 15 years, while graduate degree borrowers can choose terms of up to 20 years.
- SoFi: Offers a wide variety of online graduate and undergraduate financing options, including refinance options. It provides flexible repayment terms and competitive rates, along with perks such as autopayment discounts and cash bonuses for good grades.
Other options for funding education include scholarships, grants, and federal student loans. Students can use resources like Scholarship Search by Sallie Mae to find scholarships that match their background, major, and state of residence. Completing the FAFSA form can also help determine eligibility for federal student loans and grants.
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Frequently asked questions
No, Discover no longer offers or services student loans. As of January 31, 2024, Discover is no longer accepting new student loan applications.
If you have a Discover student loan, your loan and payments won't be affected for now. All current loans will be serviced by a third-party provider, which has yet to be announced. You can still log in to track your payments and access billing statements and tax documents.
There are several other student loan lenders that offer similar benefits to Discover, such as Sallie Mae, SoFi, and federal loans. These lenders provide flexible repayment options, rewards for good grades, and competitive rates.
Yes, Discover offers student credit cards that allow users to earn cash back rewards while building their credit history. Discover also provides a range of other financial products and services, including bank accounts, personal loans, and mortgage loans.
