On this page12 sections
- Ratings and complaints
- Discover vs. competitors
- Step by step
- Are Discover student loans discontinued?
- What existing Discover student loan borrowers should know
- Is it legit that my Discover loan was sold?
- Discover student loan complaints
- Rules that protect private student loan borrowers
- If you need a new student loan
- What customers say
- Alternatives
- FAQ
You cannot get a Discover student loan. Discover stopped accepting applications on February 1, 2024, agreed in July 2024 to sell its roughly $10.1 billion private student loan portfolio to investment vehicles managed by Carlyle and KKR, and Firstmark Services, a division of Nelnet, took over servicing. Discover's site now says it no longer offers or services student loans. If you have an old Discover loan, your balance and rate did not change, but you pay and get help through Firstmark.
- Status
- Discontinued. Discover says it no longer offers or services student loans; for help it lists 1-800-211-91121
- Applications ended
- Discover stopped accepting new student loan applications on February 1, 20243
- Portfolio sale
- Agreement announced July 17, 2024 to sell the portfolio (about $10.1 billion in principal as of June 30, 2024) to vehicles managed by Carlyle and KKR, for up to about $10.8 billion2
- Servicer now
- Firstmark Services, a division of Nelnet (Nelnet Servicing, LLC, NMLS #1508613); borrower questions 888-538-73785
- Past enforcement
- CFPB consent orders in 2015 and December 2020 over servicing; the 2020 order required at least $10 million in redress and a $25 million penalty4
- CFPB complaints
- 145 student loan complaints about Discover Bank from October 12, 2023 to October 12, 2026; top issue: dealing with the lender or servicer (70)6
- Parent company
- Discover merged into Capital One on May 18, 2025; Capital One does not service these loans1
Pros
- Existing borrowers keep their original rate and balance
- A large, established servicer (Firstmark, part of Nelnet) now handles payments
- Discover still lists a help line for former borrowers
Cons
- Not available to new borrowers since February 1, 2024
- Loans now owned by private investment funds, not a bank
- Servicer change can disrupt autopay and online access
- Discover had CFPB orders over student loan servicing in 2015 and 2020
- No new borrower benefits or refinancing from Discover
Best for: Existing Discover student loan borrowers who need to know who services their loan and what changed.
Skip it if: You are looking for a new student loan, because Discover no longer makes them.
Discover vs. competitors
| Company | Open to new borrowers | Undergrad fixed APR | Origination fee | Cosigner release |
|---|---|---|---|---|
| Discover Student Loans | No, discontinued February 1, 2024 | Not applicable | Not applicable | Not applicable |
| Ascent | Yes | 2.08% to 15.51% (October 1, 2026, with autopay discount) | None on college loans | After 12 on-time payments, for eligible graduates |
| College Ave | Yes | 1.94% to 17.99% (October 2026, with autopay discount) | None | After half the repayment term, with requirements |
Discover, step by step
Find your servicer
Former Discover loans are serviced by Firstmark Services. Your credit report may show the account under a new name; call Firstmark at 888-538-7378 or Discover's help line at 1-800-211-9112 if you are unsure.
Set up online access
Create a login on Firstmark's site and confirm your balance, rate and due date match your last Discover statement.
Reset autopay
Autopay set up with Discover may not carry over. Confirm a payment method so you do not miss a due date.
Ask about hardship options
If you are struggling to pay, ask Firstmark in writing what forbearance or modified payment options your loan agreement allows.
Consider refinancing
If your credit has improved, compare refinance offers, but refinancing private loans does not bring back any federal protections.
Are Discover student loans discontinued?
Yes. Discover announced in November 2023 that it would stop accepting new student loan applications on February 1, 2024, and explore selling the portfolio. On July 17, 2024 it agreed to sell the private student loan portfolio, about $10.1 billion in principal, to partnerships of investment vehicles managed by Carlyle and KKR, with Firstmark Services, a division of Nelnet, taking over servicing. Discover’s homepage now states that it no longer offers or services student loans.
Discover itself merged into Capital One on May 18, 2025. That did not bring the student loans back: they were already sold.
What existing Discover student loan borrowers should know
The sale changed who owns and services your loan, not its terms. Your interest rate, balance and repayment schedule carry over. You now make payments to and get help from Firstmark Services (888-538-7378, Monday to Friday, 7 a.m. to 8 p.m. Central). Your credit report may list the account under a new name.
- Log in with Firstmark and match the balance to your last Discover statement.
- Confirm autopay and any autopay rate discount are active.
- Keep copies of your original Discover loan agreement, which governs deferment, forbearance and fees.
Is it legit that my Discover loan was sold?
Yes. Lenders can sell private loans, and Discover disclosed this sale in a July 2024 filing with the SEC. Be careful with unexpected calls or emails about your loan: confirm any request by calling Firstmark at the number on its website, and never pay a third party to ‘consolidate’ or ‘forgive’ a private Discover loan. Private student loans are not eligible for federal forgiveness programs.
Private ownership has drawn scrutiny. In June 2026, U.S. senators wrote to KKR raising concerns about private equity in student lending and citing its purchase of the Discover portfolio. That letter did not change any borrower’s terms.
What customers say about Discover
Recurring themes across the review sites and complaint records listed above, not individual quotes.
Common praise
- No change to the rate or balance for existing borrowers after the sale
- Discover told borrowers their loans and payments would not be affected by the exit
Common complaints
- Problems dealing with the lender or servicer, the most common CFPB complaint issue
- Difficulty affording payments and getting help when struggling to repay
- Credit report errors and slow investigations
- Confusion over who services the loan after the transfer
Discover student loan complaints
The CFPB database shows 145 student loan complaints against Discover Bank from October 2023 to October 2026. The most common issues were dealing with the lender or servicer (70) and struggling to repay (38), followed by credit report errors. All received a timely response; 8 closed with monetary relief. Discover’s servicing history also includes CFPB consent orders in 2015 and 2020 for misstating minimum payments and interest paid and for withdrawing or canceling payments without proper notice or authorization.
If you have a problem with Firstmark, put it in writing, keep records, and file with the CFPB if it is not resolved.
Rules that protect private student loan borrowers
Private student loan servicers are covered by federal consumer financial law, which the CFPB enforces, and many states license student loan servicers. Your rights to deferment, forbearance, cosigner release and fee waivers come from your original loan agreement, not from federal programs. The Fair Credit Reporting Act lets you dispute errors on your credit report with the credit bureaus and the servicer.
If you need a new student loan
Start with the FAFSA, since federal loans come with fixed rates set by law and options like income-driven repayment. If you still need more, compare private lenders on fixed APR, fees and cosigner release. In October 2026, Ascent listed undergraduate fixed APRs of 2.08% to 15.51% with no fees on college loans, and College Ave listed 1.94% to 17.99% with no origination fee, both including autopay discounts.
Alternatives to Discover
- Federal student loans (FAFSA) Fill out the FAFSA first: federal loans have fixed rates set by law and protections such as income-driven repayment that private loans lack.
- Ascent No fees on college loans and cosigner release after 12 on-time payments. Read review
- College Ave Lets you choose your repayment term, from 5 to 15 years, with no origination fee. Read review
- Sallie Mae One of the largest private student lenders still taking applications, worth a rate check alongside the others. Read review
Discover reviews
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Frequently asked questions
Can I still get a Discover student loan?
No. Discover stopped accepting student loan applications on February 1, 2024, and says it no longer offers or services student loans.
Who services Discover student loans now?
Firstmark Services, a division of Nelnet. Borrower questions go to 888-538-7378.
Who bought Discover's student loans?
Investment vehicles and accounts managed by Carlyle and KKR, under an agreement announced July 17, 2024. The portfolio had about $10.1 billion in principal.
Did my Discover student loan rate change after the sale?
No. The sale changed the owner and servicer, not the rate, balance or repayment terms in your loan agreement.
What phone number do I call about an old Discover student loan?
Discover lists 1-800-211-9112 for assistance, and Firstmark's borrower line is 888-538-7378.
Why did Discover stop offering student loans?
Discover said in late 2023 it would exit and sell the business. Its student loan servicing had been the subject of CFPB consent orders in 2015 and 2020, and Discover cited challenges including regulatory scrutiny.
Does Capital One service Discover student loans?
No. The loans were sold before Discover merged into Capital One in May 2025, and Firstmark services them.
Can Discover student loans be forgiven?
They are private loans, so federal forgiveness programs do not apply. Ask Firstmark about hardship options in your loan agreement, and ignore offers that charge fees to get them forgiven.
Can I refinance a former Discover student loan?
Yes, with a lender that refinances private student loans, if you qualify. Compare total cost, and note that refinancing ends your current loan's terms.
What are good alternatives to Discover student loans?
Federal loans through the FAFSA come first. For private loans, compare lenders such as Ascent, College Ave and Sallie Mae on fixed APR, fees and cosigner release.
Sources (8)
Facts on this page come from company websites, government agencies and regulators, checked on the dates shown. Editorial standards
- Discover: homepage (student loans no longer offered or serviced) (accessed October 12, 2026)
- SEC: Discover Financial Services press release on sale of private student loan portfolio (July 17, 2024) (accessed October 12, 2026)
- Payments Dive: Discover pursues sale of student loan portfolio, stops applications February 1, 2024 (accessed October 12, 2026)
- CFPB: Enforcement action against Discover Bank, The Student Loan Corporation and Discover Products (December 22, 2020) (accessed October 12, 2026)
- Firstmark Services: homepage (division of Nelnet, borrower contact) (accessed October 12, 2026)
- CFPB Consumer Complaint Database: Discover Bank student loan complaints (accessed October 12, 2026)
- U.S. Senate Banking Committee: letter to KKR on private equity in student lending (June 29, 2026) (accessed October 12, 2026)
- BBB: Capital One Financial Corporation profile (accessed October 12, 2026)
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