Discover Student Loans: Exited the Market in January 2024 — Best Alternatives for 2026
Updated April 25, 2026· Reflects Discover's January 31, 2024 exit, the Carlyle/KKR portfolio sale, and Firstmark Services taking over servicing
Quick answer
Discover stopped accepting new student loan applications on January 31, 2024. The portfolio was sold to investment funds managed by Carlyle and KKR; Firstmark Services (a division of Nelnet) now manages existing Discover Student Loan accounts. There is no path to apply for a new Discover Student Loan.
If you were planning to apply: our top alternatives are College Ave (broadest product range), Sallie Mae (fastest cosigner release), and Earnest (most flexible repayment). If you have an existing Discover loan: manage it at firstmark.com.
What happened to Discover Student Loans
In late 2023, Discover Financial Services announced it would exit the private student lending business as part of a strategic refocus on its credit-card and digital-banking franchise. The decision was made before the Capital One/Discover acquisition that eventually closed in 2025; the student loan exit was a separate strategic call by Discover's leadership at the time.
The exit unfolded in three stages:
- January 31, 2024 — Applications closed. Discover stopped accepting new student loan applications. The Discover Student Loans website transitioned to an informational-only experience for existing borrowers.
- Late 2024 — Portfolio sold. Discover sold its $10.8 billion student loan portfolio to investment funds managed by Carlyle and KKR. The sale closed in two tranches.
- Late 2024 / early 2025 — Servicing transition.Firstmark Services, a division of Nelnet, took over day-to-day servicing of the loans. Borrowers received written notice of the servicer change and were directed to Firstmark's portal for future account management.
Original loan terms — interest rate, repayment schedule, cosigner status — did not change as a result of the sale or the servicing transition. Only the contact information and payment portal changed.
If you have an existing Discover Student Loan
Your loan is now serviced by Firstmark Services, a division of Nelnet (one of the largest student loan servicers in the United States). Everything you used to do on the Discover Student Loans portal you now do on Firstmark's portal:
- Make payments and view your balance
- Change repayment plans or request forbearance
- Update autopay information
- Request cosigner release (if eligible)
- Get tax documents (Form 1098-E)
Manage your loan
Visit firstmark.comFirstmark Services customer service: 1-888-538-7378 (verify on the Firstmark site before calling).
Best alternatives for 2026
If you were planning to apply for a Discover Student Loan, the lenders below are the best currently-originating alternatives for in-school undergraduate, graduate, and refinancing needs.
College Ave Student Loans
Read full review →Best for: Broadest product range — undergraduate, graduate, parent, and refinance loans in one place
- Available for undergraduate and graduate students
- Multiple repayment terms (5, 7, 10, 15, 20 years)
- No origination, application, or prepayment fees
- Pre-qualification with soft credit pull
Watch-out: Cosigner release requires payments equal to half the original loan term — one of the slower release timelines. Best for borrowers who don't anticipate needing cosigner release quickly.
Sallie Mae
Read full review →Best for: Fastest cosigner release in the industry
- Cosigner release after 12 consecutive on-time principal-and-interest payments
- Available for undergraduate, graduate, and parent borrowing
- No origination fees on most products
- Established institutional servicing infrastructure
Watch-out: Rates not always lowest in market; product lineup is large enough to be confusing for first-time borrowers.
Earnest
Read full review →Best for: Most flexible repayment customization
- Customize repayment term in 1-month increments (refinance)
- Skip-a-payment option once per year (refinance)
- No origination, prepayment, or late fees
- Soft pre-qualification available
Watch-out: Better fit for refinancing than for in-school borrowing; rate ceiling is higher than nonprofit lenders.
Bottom line
Discover Student Loans was a real product with competitive rates and good customer service for the decade-plus that Discover originated student loans. As of 2026, that product no longer exists for new borrowers. Existing borrowers have not been disadvantaged by the transition: rates and terms are protected by the original promissory note, and Firstmark is a competent servicer.
If you were specifically attached to Discover's product, the closest replacement depends on what attracted you to it. For broad product range and dependable institutional backing, College Ave is the closest fit. For fast cosigner release, Sallie Mae has the edge. For maximum repayment flexibility, Earnest is the strongest option. Get pre-qualified at all three (the soft credit pulls don't affect your score) and compare actual offers before deciding.