Savanna Hoffman
Discover no longer offers or services student loans, but borrowers with existing Discover student loans may be looking for ways to pay off their debt. There are several strategies to manage and pay off student loans, including refinancing, settlements, and hardship assistance programs. Some borrowers may consider using a credit card to pay off student loans, but this is often not recommended due to associated risks and fees.
| Characteristics | Values |
|---|---|
| Hardship Assistance Program | Temporary reduction in the interest rate to lower the bill |
| Loan Forgiveness | In the event of permanent disability or death of the borrower (or the student, in the case of a parent loan) |
| Refinancing | Replacing the current loan with a new one, offering a lower interest rate, a longer repayment term, or both |
| Extended Repayment Terms | Lowering monthly payments by stretching the loan over a longer period |
| Settlements | Negotiating with Discover or a collection agency to lower the principal balance and make payments towards the reduced loan balance |
| Third-Party Services | Using a third-party site to pay the loan provider with their preferred method while charging your credit card |
| Convenience Checks | Using the available balance on your credit card, similar to a personal check, but accrues high interest rates |
| No Longer Offering Student Loans | Discover no longer offers or services student loans |
| Extra Payments | Paying extra to save on interest and pay off the loan faster |
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Refinancing
Discover no longer offers or services student loans. If you have an existing student loan with Discover, it will be transferred to a new servicer and then sold to another lender.
If you're looking to refinance your Discover student loan, you can consider doing so with Earnest. Earnest treats student debt personally and provides lifetime support for all refinanced loans. They also offer low rates to help you pay off your debt faster.
To qualify for refinancing, you typically need a credit score in the low 700s, steady employment, and enough income to cover your debts. If you don't meet these criteria, you can apply with a cosigner. It's important to note that refinancing can be a hard hit on your credit score, so it may be worth considering other options first, such as enrolling in a part-time degree program and setting up a payment plan or seeking tuition assistance from your employer.
Another option to consider is the Hardship Assistance Program, which offers a temporary reduction in the interest rate if you can't afford your monthly payment amount. However, not all loan types are eligible for this program, and eligibility varies based on the borrower's need for payment assistance.
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Settlements
Discover no longer offers or services student loans. If you previously had a Discover student loan, it may have been forgiven. However, it is possible that your loan has been sold to a debt collector.
If you are still repaying a Discover student loan, you may be able to reduce the amount you owe through a settlement. Settling is a last resort, as defaulting will hurt your credit score and may lead to collection actions and wage garnishment. If you default on your loan, you can negotiate with Discover or a collection agency to lower the principal balance you owe and make payments towards that reduced loan balance. Discover usually settles for about 60% to 75% of the owed amount. They typically want this in a lump sum, but there have been deals where payments have been spread over 24 or even 60 months.
If you are struggling to make your Discover student loan payments, you may be able to reduce them through refinancing, extended repayment terms, or a hardship assistance program. To qualify for refinancing, you usually need a credit score in the low 700s, steady employment, and enough income to cover your debts. If you do not meet these criteria, you can apply with a cosigner. Refinancing can reduce the interest rate on your loan, which can lower your monthly payments and the total amount paid over the life of the loan. Some lenders offer extended repayment terms, which can lower your monthly payments. For example, stretching a $20,000 loan over 15 years can reduce your monthly bill by $106. If you cannot afford your monthly payment amount, the Hardship Assistance Program offers a temporary reduction in the interest rate to lower your bill. Not all loan types are eligible for this program, and eligibility varies based on the borrower's need for payment assistance.
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Forbearance
Discover no longer offers or services student loans. The company merged with Capital One N.A. in May 2025. If you had a Discover student loan, it has likely been transferred to Firstmark Services. You can contact Firstmark directly for queries related to your account.
Discover student loan borrowers may have had access to forbearance options. Forbearance allows you to delay payments for a set period, after which your monthly payments may increase. For example, Discover offered a forbearance option of 6 or 12 months with increased monthly payments afterward. There was also an option for split forbearance, where payments were worked out on two loans for a more manageable amount.
If you are experiencing financial hardship, Discover offered a Hardship Assistance Program that temporarily reduces the interest rate to lower your bill. To qualify, you must demonstrate a need for payment assistance. Additionally, you can explore payment assistance or repayment programs offered by Discover to help bring your account current. These programs may allow you to make lower payments or extend your loan term.
It is important to carefully consider your options and seek professional advice when managing your student loan debt.
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Hardship Assistance Program
Discover Student Loans are private loans and do not qualify for federal loan benefits such as payment suspensions under federal programs. However, Discover offers a Hardship Assistance Program for those who cannot afford their monthly payments. This program offers a temporary reduction in the interest rate to lower your bill. Not all loan types are eligible for this program, and eligibility depends on the borrower's need for payment assistance.
Discover also offers loan forgiveness in cases of permanent disability or death of the borrower (or the student, in the case of a parent loan).
To explore these options, you can contact Discover directly at 1-800-STUDENT. Discover Cardmembers can also discuss their specific situation and explore other financial hardship programs that may be available.
- Refinancing: This involves replacing your current loan with a new one, offering a lower interest rate, a longer repayment term, or both. Refinancing can significantly reduce the interest rate on your loan, leading to lower monthly payments and a reduction in the total amount paid over time. Private student loans can be refinanced more than once at no added cost, allowing you to take advantage of lower interest rates in the future.
- Settlements: In some cases, you may be able to negotiate directly with Discover to lower the principal balance you owe and make payments towards that reduced amount. However, settling your debt may impact your credit score and involve legal complexities.
- Extended Repayment Terms: Some lenders offer extended repayment terms, which can lower your monthly payments. For example, a longer repayment term for a $20,000 loan can reduce your monthly bill significantly.
- Forbearance: This option allows you to defer your loan payments for a period of time, giving you breathing room to pay down other debts. However, forbearance merely delays payments, and refinancing may be a more sustainable long-term strategy.
- Part-time work and tuition assistance: Consider enrolling in a part-time degree program and working full-time. You can set up a payment plan with your educational institution to avoid taking on more loans. Additionally, your employer may offer tuition assistance or connections with providers who can help with refinancing student loans.
- Credit card payments: Using a credit card to pay off student loans is usually not recommended due to associated risks and fees. However, in specific circumstances, it may be beneficial, such as using a credit card with an introductory APR offer to pay down your debt, provided you can pay it off before the end of the introductory period.
Remember, it is important to proactively communicate with creditors and seek help when facing financial hardship.
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Loan Forgiveness
Discover Student Loans won't be forgiven by the lender. Private student loan lenders like Discover rarely forgive loans because they are incentivized to make money, not lose it.
However, there are some circumstances in which loan forgiveness may be available, such as in the case of permanent disability or the death of the borrower (or the student, in the case of a parent loan). If you believe either of these situations applies to you, you can call Discover at 1-800-STUDENT to learn more about your options.
Additionally, while Discover does not offer income-driven repayment plans, it may allow you to temporarily lower your interest rate or make interest-only payments while you improve your financial situation. This is known as the Hardship Assistance Program, and it offers a temporary reduction in interest rates to lower your bill. Not all loan types are eligible for this program, and eligibility varies based on the borrower's need for payment assistance.
If you are struggling to make monthly payments due to a job loss or a change in income, Discover rarely grants forbearance opportunities like those offered by the government and other private lenders. However, you can call Discover at 1-877-256-2660 to determine if you are eligible for a payment assistance program. Discover also offers the option to temporarily make lower payments that will gradually increase in the last three months of the program to return to your standard monthly payment amount.
If you have exhausted all other options, you may consider filing for bankruptcy. Student loan discharges due to bankruptcy are rare but not impossible. You must file a lawsuit known as an adversary proceeding and prove that the loans pose an undue hardship. Declaring bankruptcy will negatively impact your credit history for years, and you will need to file a separate lawsuit to ask the judge to discharge your loans.
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Frequently asked questions
Discover no longer offers or services student loans. If you have an existing loan, you can contact Firstmark Services to access your account or call 1-888-295-0910 for questions regarding payments, tax documents, and other loan-related documents.
You can pay off your student loan faster by making extra payments. The quicker you pay down your principal balance, the more interest you can save in the long run. You can use the Loan Simulator on StudentAid.gov to see how much faster you can pay off your loan by paying an extra amount.
There are several ways to lower your Discover student loan payments, including:
- Refinancing: You can replace your current loan with a new one that offers a lower interest rate, a longer repayment term, or both.
- Hardship Assistance Program: If you can’t afford your monthly payment, this program offers a temporary reduction in the interest rate to lower your bill.
- Extended Repayment Terms: Some lenders allow you to stretch out your loan over a longer period, reducing your monthly payments.
Yes, it is possible to use a credit card to pay off your student loan in specific circumstances. However, it is usually not recommended as it can be expensive and may not be accepted by most loan providers. If you decide to use a credit card, you can either use a third-party payment service or convenience checks.
If you are unable to pay off your Discover student 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 on your loan can hurt your credit score and lead to legal complexities.
