Payments

Discover approves plan to sell off Student Loans portfolio

December 4, 2023

Discover Financial Services' board has approved a plan to sell its Student Loans portfolio and to transfer servicing of the loans to a third-party provider. The company will also stop accepting new student loan applications on Feb. 1, 2024, according to a press release.

"Discover's board regularly reviews the strategic fit of all of our businesses, with a focus on providing exceptional customer service and allocating resources to optimize returns," John Owen, interim CEO and president, Discover, said in the release. "During a recent review, the board determined that exploring the sale and transfer of servicing of Discover's student loans is aligned with those priorities, better enabling Discover to focus on our core banking products, capitalize on our growth opportunities and deliver long-term shareholder value. We are committed to a path forward that enables a seamless transition for our customers as they advance their education and financial goals."