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Last update: November 17, 2024
2 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
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.
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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.
Why trust TuitionHero
At TuitionHero, we’re here to support you after Discover’s exit from student loans. We offer private student loans, refinancing, scholarships, FAFSA help, and credit card options. Worried about the gap left by Discover? We’ll guide you smoothly through other options to simplify your educational finances.
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.
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.
Source
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 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.
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