Discover Exited Student Loans in 2024: The $10.1 Billion Portfolio Sale to Carlyle Group and KKR for $10.8B, the Transition to Firstmark Services (Nelnet Subsidiary), What Legacy Borrower Benefits Continue (12-Payment Cosigner Release, Death/TPD Discharge, 0.25% Auto-Pay Discount), the 2015 CFPB Consent Order ($18.5M Penalty) That Shapes FDCPA Validation Opportunities, and the Path That Cuts Discover Legacy Debt Up to 50%

Informational content only. Not legal advice. Private Student Relief is a consulting organization, not a law firm. Individual results vary by lender, loan terms, and circumstances. Last reviewed: May 2026.

On July 17, 2024, Discover Financial Services announced through an SEC Form 8-K filing that it had entered into an agreement to sell its private student loan portfolio to strategic partnerships comprised of investment vehicles and accounts managed by Carlyle Group and KKR — one of the largest private student loan portfolio transactions in recent US financial history. As of June 30, 2024, the principal balance of the Discover portfolio was approximately $10.1 billion across approximately 500,000+ borrowers, with an agreed sale price of up to $10.8 billion at a premium to principal balance. Discover Bank had previously announced in November 2023 that it would exit the private student loan business, and stopped accepting new applications on January 31, 2024. Firstmark Services, a division of Nelnet (NYSE: NNI), assumed responsibility for servicing the portfolio, with Monogram LLC (a Carlyle portfolio company) serving as portfolio manager. The transaction closed through multiple closings by the end of 2024. For the roughly 500,000 legacy Discover private student loan borrowers, this transition creates specific circumstances that warrant careful attention. Loan terms have not changed — interest rates, balances, and repayment schedules remain identical to the original Discover promissory notes. But the servicer has changed to Firstmark Services, borrower benefits including cosigner release (12 consecutive on-time payments), voluntary death and total permanent disability discharge, and existing hardship options continue but are now administered through Firstmark. Critically, the CFPB issued a 2015 consent order against Discover Bank imposing an $18.5 million penalty for illegal student loan servicing practices — including overstating minimum payments, sending inaccurate tax information (1099-C issues), and using illegal collection tactics — a regulatory history that continues to shape the FDCPA validation opportunities available to legacy Discover borrowers under 15 U.S.C. § 1692g. For legacy Discover borrowers facing unaffordable payments, transitions between servicers historically create documentation gaps that support validation and settlement outcomes. This guide explains what the Discover exit means for legacy borrowers, what rights and benefits continue, how to work with Firstmark Services, and how the broader Private Student Loans Forgiveness alternatives framework applies to Discover legacy debt.

What Happened to Discover’s Student Loan Business?

Discover Financial Services’ exit from the private student loan market ranks among the largest US private student loan business transitions in recent years. Understanding the specific timeline, transaction structure, and party roles is essential context for any legacy Discover borrower navigating the transition.

November 2023 — the exit announcement. Discover Financial Services announced in November 2023 that it would exit the private student loan business. The announcement came amid broader corporate restructuring at Discover and against a backdrop of increasing regulatory scrutiny of private student loan servicing practices. The company signaled it would wind down its student loan operations, sell the existing portfolio, and cease new originations. This exit announcement gave prospective borrowers notice that Discover would no longer be available as a private student loan lender.

January 31, 2024 — final origination date. Discover stopped accepting new private student loan applications effective January 31, 2024. New applications submitted after this date were declined. Applications submitted before January 31 but not yet approved were processed to conclusion, but Discover ceased marketing student loans and directing borrowers to its student loan products after this date.

January 2024 — Firstmark Services announced as servicer. Concurrent with the wind-down, Discover announced in January 2024 that Nelnet (through its Firstmark Services division) would assume responsibility for servicing the existing Discover private student loan portfolio. Firstmark Services is a well-established federal and private student loan servicer with substantial servicing infrastructure. The transition to Firstmark was announced before the ultimate portfolio sale to allow servicing continuity while the sale negotiations completed.

July 17, 2024 — sale to Carlyle and KKR announced. On July 17, 2024, Discover filed an SEC Form 8-K announcing that Discover Bank had entered into an agreement to sell its private student loan portfolio to strategic partnerships comprised of investment vehicles and accounts managed by Carlyle (NASDAQ: CG) and KKR (NYSE: KKR). As of June 30, 2024, the principal balance of the private student loan portfolio was approximately $10.1 billion. The purchase price payable to Discover in the transaction was at a premium to principal balance and expected to reach approximately $10.8 billion. KKR Capital Markets and TCG Capital Markets structured and arranged the debt for the transaction. Monogram LLC, a Carlyle portfolio company, was designated as portfolio manager. Firstmark Services continued as servicer under the new ownership structure.

End of 2024 — sale completion through multiple closings. The transaction was structured to close through multiple closings by the end of 2024. This staged closing structure is common for large loan portfolio transactions and allows for orderly transition of servicing responsibilities, borrower notification, and documentation transfer. By early 2025, the sale was substantially complete.

2025 — Capital One acquires Discover. Separately from the student loan portfolio sale, Capital One completed its acquisition of Discover Financial Services in 2025 in a stock deal valued at approximately $35.3 billion. This acquisition affected Discover’s payments and banking businesses but did NOT involve the student loan portfolio, which had already been sold to Carlyle/KKR. The Capital One acquisition is relevant to Discover legacy borrowers only insofar as it affects other Discover products (Discover credit cards, checking, savings) they may hold, not the private student loans that transitioned to Carlyle/KKR ownership.

What Does the Firstmark Servicing Transition Mean for Legacy Discover Borrowers?

The transition from Discover Bank to Firstmark Services (Nelnet) as servicer creates specific operational changes for legacy Discover borrowers even though the underlying loan terms remain unchanged. Understanding what has changed and what has not is essential for managing the loan effectively under the new servicing arrangement.

Loan terms have not changed. The interest rate, principal balance, repayment schedule, cosigner information, monthly payment amount, and all contractual loan terms established by the original Discover promissory note remain identical. Federal law protects consumers when loans are sold or transferred to a new servicer — the terms cannot be unilaterally modified by the new owner or servicer. If you had a Discover Certus Student Loan with a specific interest rate and term, that Certus Student Loan continues with identical terms under Firstmark servicing. Any Firstmark communication suggesting term changes should be immediately questioned, and payment history should be preserved carefully.

The servicer relationship has changed. All account management, billing, payment processing, communications, and hardship program administration have transitioned from Discover to Firstmark Services. Legacy borrowers need to create an account on Firstmark’s servicing platform to make payments, review loan information, apply for cosigner release, request forbearance, or submit hardship applications. Firstmark provides customer service at its designated contact numbers and email addresses. The Discover borrower support that existed for years is no longer available for student loan questions — all questions and requests now go through Firstmark.

Payment history should transfer, but verify carefully. Under federal servicing transfer rules, the new servicer must accurately maintain the payment history established by the previous servicer. In practice, servicing transitions frequently produce payment history discrepancies — missing payments, incorrect application of payments, differences in credit reporting. Legacy Discover borrowers should verify their Firstmark account payment history against their records within 30-60 days of transition. Discrepancies should be immediately disputed in writing to Firstmark, with supporting documentation from Discover statements and payment records. Preserve all Discover documentation you have — statements, payment confirmations, correspondence — as verification against Firstmark records.

Credit reporting continues under the same account. The legacy Discover student loan continues to appear on your credit report, though the servicer or lender identification may change to reflect Firstmark or the Carlyle/KKR ownership structure. Payment history reported by Firstmark to the credit bureaus should continue seamlessly from the Discover history. Verify credit reporting accuracy within 60-90 days of the transition; the Fair Credit Reporting Act (FCRA) provides dispute rights for inaccurate credit information regardless of servicer transitions.

Auto-pay may have transitioned or require re-enrollment. Auto-pay enrollments established with Discover may have automatically transitioned to Firstmark, or they may require re-enrollment through the Firstmark platform. Check your bank account for the first Firstmark billing cycle to verify payments processed correctly. If Firstmark did not automatically pull the expected payment, re-enroll in auto-pay to maintain the 0.25% interest rate discount (which continues under the legacy Discover terms). Missed payments due to servicing transition issues should be immediately reported to Firstmark and, if credit reporting was affected, disputed through the credit bureau process.

What Discover Legacy Loan Benefits Still Apply — and What’s Ended?

The legacy Discover borrower benefits established under the original Discover promissory notes continue under Firstmark servicing, though administration has transitioned to the new servicer. Some Discover-specific benefits — particularly those tied to Discover’s active origination business — have ended with the exit from the market. Understanding what continues and what has ended is essential for maximizing legacy loan benefits.

Cosigner Release — 12 consecutive on-time payments continues. Discover’s cosigner release program required 12 consecutive on-time principal and interest payments after graduation plus credit review demonstrating the primary borrower’s independent ability to assume the loan. This program continues under Firstmark servicing, though applications are now submitted through Firstmark rather than Discover. The 12-payment requirement, credit criteria, and documentation requirements remain the same as under the original Discover program. For legacy Discover borrowers with cosigners, the release opportunity remains available on the same terms — the change is only in how to submit the application. The 90% denial rate that CFPB documented for cosigner release applications generally applies here as well; see Day 21 of our series for detailed cosigner release strategy.

Death and Total Permanent Disability Discharge — voluntary programs continue. Discover’s voluntary death and total permanent disability (TPD) discharge programs — one of the reasons Discover was often mentioned favorably among private lenders — continue under Firstmark servicing. Upon documented death of the primary borrower, the loan is discharged and cosigners are released from further liability. Upon documented total permanent disability of the primary borrower, discharge is available with medical documentation. Applications are submitted through Firstmark. This makes Discover legacy loans one of the 5 private lender loan categories with contractual death/TPD discharge, a significant benefit compared to lenders without such programs.

0.25% Auto-Pay Interest Rate Discount continues. Legacy Discover borrowers enrolled in auto-pay receive the 0.25% interest rate discount under the original promissory note terms. This discount continues under Firstmark servicing — auto-pay through Firstmark maintains the discount. If auto-pay was suspended during the transition or requires re-enrollment through Firstmark, ensuring continued auto-pay is important for maintaining the discount.

Standard hardship options continue. Discover offered limited hardship forbearance and reduced payment options during specific hardship circumstances. Similar options continue under Firstmark servicing, though the specific programs and eligibility criteria may be administered through Firstmark’s standard hardship framework rather than Discover’s original program names. Legacy borrowers should contact Firstmark directly to inquire about current hardship options if they face temporary payment difficulties.

Discover-specific rewards — 1% Cash Reward has ended. Discover offered a 1% Cash Reward for borrowers who maintained a GPA of 3.0 or higher during their studies — a distinctive marketing feature that made Discover popular with high-achieving students. This reward applied to Discover-originated loans during specific enrollment periods. Because Discover no longer originates loans and Firstmark is a servicer (not a lender), no new cash reward opportunities are available. For borrowers who earned the reward during their original Discover enrollment, the reward would have already been applied to their loan; it does not continue to accrue.

Discover-specific customer service has ended. The dedicated Discover student loan customer service, brand-specific communications, and Discover-branded borrower portal have ended. All communications now come from Firstmark Services, and all borrower services operate through Firstmark’s platforms. This is a significant experiential change for borrowers who had established relationships with Discover representatives; the servicing quality and responsiveness may differ under the new servicer.

What CFPB History Shapes the Validation Opportunities for Legacy Discover Borrowers?

The Consumer Financial Protection Bureau’s substantial 2015 enforcement action against Discover Bank shapes the regulatory context for legacy Discover borrowers today. Understanding this history — and how it affects FDCPA validation opportunities when legacy Discover loans move to collections — provides critical context for any Discover legacy borrower facing servicing disputes or collection activity.

The 2015 CFPB Consent Order — $18.5 million penalty. In 2015, under then-CFPB Director Richard Cordray, the Consumer Financial Protection Bureau issued a consent order against Discover Bank imposing an $18.5 million penalty for illegal student loan servicing practices. The consent order documented multiple categories of violations affecting hundreds of thousands of Discover student loan borrowers over multiple years of servicing practices. The Director’s public statement characterized the practices as “Discover created student debt stress for borrowers by inflating their bills and misleading them about important benefits” — an official regulatory finding that continues to have implications for how Discover legacy loans should be examined for accuracy.

Specific violation categories. The CFPB 2015 consent order documented three specific violation categories relevant to legacy borrowers today: (1) Overstating minimum payments due — Discover was found to have overstated the minimum monthly payments required from borrowers, causing borrowers to pay more than they actually owed during specific billing cycles. (2) Sending inaccurate tax information — Discover sent inaccurate 1099-C tax forms to borrowers, potentially causing borrowers to pay incorrect tax on debt cancellation events or to underreport income on their tax returns. (3) Using illegal collection tactics — Discover was found to have engaged in collection practices that violated the Fair Debt Collection Practices Act (FDCPA) and related consumer protection laws.

Continuing relevance for legacy borrowers. While the 2015 consent order specifically addressed Discover’s practices at that time, the regulatory findings create continuing context for legacy borrowers today: (a) If your billing history shows patterns consistent with the CFPB findings — overstated minimum payments, inaccurate tax reporting, or aggressive collection practices — you may have basis to challenge specific charges or credit reporting. (b) The consent order established a pattern of Discover practices that supports FDCPA validation strategy — asking third-party debt collectors to produce complete accurate documentation for any legacy Discover debt. (c) Documentation gaps commonly occurred during Discover’s active period; those gaps may be more pronounced now with the servicing transition to Firstmark.

FDCPA validation during transitions. Servicing transitions historically produce specific documentation gaps that support FDCPA validation strategy under 15 U.S.C. § 1692g. When a legacy Discover loan later moves to a third-party debt collector (which is common for older or delinquent private student loans), the collector must produce: the original signed promissory note (with borrower and cosigner signatures matching the exact terms); complete payment history from origination through the transition period; documentation of the transfer chain from Discover to Carlyle/KKR/Monogram/Firstmark; and current authority to collect the specific debt. Transitions between multiple parties (Discover → Firstmark servicing → Carlyle/KKR ownership → Monogram management) create multiple documentation points that can each fail validation.

What Actually Works for Discover Legacy Borrowers in Financial Hardship?

For legacy Discover borrowers facing financial hardship or unaffordable payments, the resolution framework combines multiple mechanisms — some specific to Discover’s legacy structure, others applicable to any private student loan. Understanding the full framework helps borrowers select the strategically optimal path for their specific situation.

Firstmark hardship programs. Firstmark Services offers standard private student loan hardship options including forbearance in short increments (typically 3-6 months) and possible interest rate modifications for documented hardship. These programs are discretionary — Firstmark decides whether to grant hardship requests case-by-case. Interest continues to accrue during forbearance and typically capitalizes to principal at the end. As discussed in Day 18 of our series, private lender hardship programs (whether from Firstmark, Sallie Mae, or any other private servicer) provide temporary relief but not structural resolution. For borrowers whose hardship is temporary (job transition, short-term illness), Firstmark forbearance can help; for structural hardship, other mechanisms are needed.

Refinancing to another private lender. If your credit and income have improved sufficiently since the original Discover loan, refinancing through another private lender can lower your interest rate, extend or shorten the term, and remove any cosigner from the original obligation. Available refinancing lenders include SoFi, Earnest, Laurel Road, Citizens Bank, College Ave, LendKey, and others. Compare terms carefully; some refinancing offers extend loan term substantially (reducing monthly payment but increasing total interest). Federal loans should NOT be refinanced into private (permanent forfeiture of PSLF, IDR forgiveness, federal Closed School Discharge, and other federal benefits — see prior guides). For legacy Discover private loans, refinancing to another private lender preserves the private-loan character while potentially improving terms.

FDCPA validation under 15 U.S.C. § 1692g. If your legacy Discover loan has moved to a third-party debt collector — common for older, delinquent, or defaulted private student loans — you have the federal statutory right to demand validation. The collector must produce the original signed promissory note, complete payment history through all servicer transitions, and documentation of the current collection authority. Given the multi-party transition (Discover → Firstmark → Carlyle/KKR ownership → potentially further transfers to collections), documentation gaps are common. Failed validation supports settlement negotiations at 30-50% of balance or practical unenforceability. Cosigners have full independent FDCPA rights.

Hardship settlement. Settlement of legacy Discover loans is negotiated with the current holder (typically Firstmark for still-performing loans, or a third-party collector for defaulted loans). Documented hardship — job loss, disability, medical bills, family financial crisis, extended unemployment — supports settlement offers typically in the 30-50% range for private debt. The 2015 CFPB findings about Discover’s practices provide context supporting settlement negotiations for legacy borrowers who experienced billing or collection issues during Discover’s active period. Settlement documentation should be reviewed carefully by a consumer-protection attorney before signing.

FTC Holder Rule claims (16 C.F.R. § 433.2). For legacy Discover loans tied to schools that engaged in misconduct — including for-profit schools with documented accreditation problems, closed schools, or schools that misrepresented outcomes — the FTC Holder Rule preserves the borrower’s right to assert school-related claims against the current loan holder. State attorney general investigations and federal Borrower Defense adjudications supporting Holder Rule claims apply equally to legacy Discover loans as to any other private loan. Successful Holder Rule claims can eliminate the entire loan.

State statute of limitations analysis. Legacy Discover loans that have been in delinquency or collections for years may be approaching or past the state statute of limitations (3-15 years depending on state). Time-barred debt cannot be enforced through court process. SOL analysis combined with FDCPA validation demands can produce practical resolution similar to what borrowers imagine “forgiveness” would deliver. Verification with a state-licensed attorney is essential; reset triggers (any payment, written acknowledgment) can restart the clock unexpectedly.

Bankruptcy under 11 U.S.C. § 523(a)(8). For legacy Discover borrowers with structural long-term hardship, bankruptcy remains available under the two-path framework discussed in Day 19 of our series. Qualified education loans require adversary proceeding and undue hardship proof (Brunner test); non-qualified education loans discharge automatically. Some legacy Discover private loans may qualify as “non-qualified education loans” if they were direct-to-consumer, exceeded certified cost of attendance, or were tied to non-Title IV schools — creating automatic discharge opportunities. Consult a bankruptcy attorney experienced in private student loan cases to evaluate whether your specific Discover legacy loans qualify.

Discover Legacy Student Loans in 2026: Key Facts

Discover Financial Services exited the private student loan market in a multi-stage process from November 2023 through end of 2024, culminating in the sale of the approximately $10.1 billion private student loan portfolio to strategic partnerships comprised of investment vehicles and accounts managed by Carlyle Group (NASDAQ: CG) and KKR (NYSE: KKR) for up to $10.8 billion. Timeline: November 2023 — Discover announced intent to exit the private student loan market. January 2024 — Firstmark Services (a division of Nelnet, NYSE: NNI) announced as future servicer. January 31, 2024 — Discover stopped accepting new private student loan applications. July 17, 2024 — Discover Financial Services filed SEC Form 8-K announcing the agreement to sell the portfolio to Carlyle/KKR strategic partnerships; principal balance as of June 30, 2024 was approximately $10.1 billion; expected sale price up to $10.8 billion at a premium to principal; KKR Capital Markets and TCG Capital Markets structured and arranged the debt for the transaction. End of 2024 — sale completed through multiple closings. Firstmark Services continues as servicer under new ownership. Monogram LLC (a Carlyle portfolio company) serves as portfolio manager. Separately, Capital One completed its acquisition of Discover Financial Services in 2025 (approximately $35.3 billion stock deal) — this affected Discover’s payments and banking businesses but NOT the student loan portfolio, which had already been sold to Carlyle/KKR.

For approximately 500,000+ legacy Discover borrowers, loan terms remain unchanged under Firstmark Services — interest rates, principal balances, repayment schedules, cosigner information, and monthly payments continue identically to the original Discover promissory notes. Discover legacy borrower benefits that continue under Firstmark servicing: Cosigner Release requiring 12 consecutive on-time principal and interest payments plus credit review (industry-leading short timeline shared with Sallie Mae); voluntary Death Discharge upon documented primary borrower death (Discover legacy is one of 5 private lender categories offering contractual death/TPD discharge — Sallie Mae Smart Option, Discover legacy, Laurel Road, Wells Fargo legacy sold to Firstmark Services 2020-2021, and New York Higher Education Services Corporation); voluntary Total Permanent Disability discharge upon documented TPD; 0.25% auto-pay interest rate discount for enrolled borrowers; standard hardship forbearance options (limited discretionary duration). Benefits that have ended: 1% Cash Reward for GPA 3.0+ (was Discover-originated only, no new applications available since Firstmark is a servicer not a lender); new loan originations (Discover ceased January 31, 2024); Discover-specific customer service and brand-specific borrower portal. Federal law protects consumers when loans are sold or transferred to a new servicer — terms cannot be unilaterally modified by the new owner or servicer. Servicing transitions historically produce documentation gaps affecting payment history, credit reporting, and account transitions; legacy borrowers should verify Firstmark records against preserved Discover documentation within 30-60 days of transition and dispute discrepancies immediately in writing.

For legacy Discover borrowers facing unaffordable payments, the resolution framework combines multiple mechanisms. The Consumer Financial Protection Bureau issued a 2015 consent order against Discover Bank imposing an $18.5 million penalty for illegal student loan servicing practices — including overstating minimum payments due, sending inaccurate tax information (1099-C issues), and using illegal collection tactics — regulatory context that continues to shape FDCPA validation opportunities for legacy borrowers today. Resolution mechanisms: (1) Firstmark hardship programs — limited discretionary forbearance in short increments; interest continues to accrue. (2) Refinancing to another private lender (SoFi, Earnest, Laurel Road, Citizens Bank, College Ave, LendKey, others) if credit and income support new borrowing at competitive terms. (3) FDCPA validation under 15 U.S.C. § 1692g if the loan moves to third-party collections — multi-party transition (Discover → Firstmark servicing → Carlyle/KKR ownership → Monogram management) creates documentation opportunities. (4) Hardship settlement typically at 30-50% of balance with documented hardship. (5) FTC Holder Rule claims under 16 C.F.R. § 433.2 for loans tied to schools with documented misconduct. (6) State statute of limitations analysis (3-15 years by state) for older loans. (7) Bankruptcy under 11 U.S.C. § 523(a)(8) — some legacy Discover loans may qualify as non-qualified education loans (auto-dischargeable without adversary proceeding) if they were direct-to-consumer, exceeded certified cost of attendance, or were tied to non-Title IV schools. The combined approach is the foundation of Private Student Loans Forgiveness alternatives for Discover legacy borrowers. A free case review identifies which combination fits your specific situation.

Frequently Asked Questions for Discover Legacy Borrowers

Discover Financial Services exited the private student loan market in a multi-stage process from November 2023 through end of 2024 — announcing intent to exit, ceasing new applications January 31, 2024, announcing Firstmark Services as servicer January 2024, and selling the approximately $10.1 billion portfolio to Carlyle Group and KKR strategic partnerships for up to $10.8 billion in July 2024 (announced in SEC Form 8-K). For approximately 500,000+ legacy Discover borrowers, loan terms remain unchanged under Firstmark servicing — interest rates, principal balances, repayment schedules, cosigner release eligibility (12 payments), death/TPD discharge programs, and 0.25% auto-pay discount all continue. The 1% Cash Reward and new originations have ended. The 2015 CFPB consent order against Discover Bank ($18.5 million penalty for illegal student loan servicing practices) provides continuing regulatory context that supports FDCPA validation strategy for legacy borrowers whose loans move to collections. For legacy borrowers facing unaffordable payments, the resolution framework combines Firstmark hardship programs, refinancing to other lenders, FDCPA validation (transition-era documentation gaps often support validation), hardship settlement, FTC Holder Rule claims, state SOL analysis, and bankruptcy under Section 523(a)(8) where structural hardship warrants. The combined approach is the foundation of Private Student Loans Forgiveness alternatives for Discover legacy borrowers. A free case review identifies which combination fits your specific situation.

Disclaimer: Informational content only. Not legal, tax, or financial advice. Henry Silva is a debt specialist, not a licensed attorney, tax professional, or financial advisor. Private Student Relief is owned and operated by Joco and is a private student loan payment relief consulting organization — not a law firm, debt settlement company, debt consolidation company, loan provider, U.S. Department of Education representative, or affiliate of Discover Financial Services, Firstmark Services, Nelnet, Carlyle Group, KKR, Monogram LLC, or Capital One. We do not assume consumer debt, make payments to creditors on your behalf, or process applications on behalf of borrowers. We help clients reduce their private student loan payments by matching them with a vetted partner provider that performs FDCPA-compliant debt validation, hardship negotiation, or consolidation strategies under independent business credentials. Ratings, BBB accreditation, and industry tenure referenced belong to our partner provider. Individual results vary based on financial circumstances. Not available in South Carolina or Mississippi. Discover Financial Services exit timeline (November 2023 exit announcement; January 2024 Firstmark Services announcement as servicer; January 31, 2024 final date accepting new applications; July 17, 2024 SEC Form 8-K announcing sale to Carlyle Group and KKR strategic partnerships; principal balance approximately $10.1 billion as of June 30, 2024; sale price up to $10.8 billion at premium to principal; end of 2024 sale completion through multiple closings; Monogram LLC as portfolio manager; Firstmark Services continues as servicer; 2025 Capital One acquisition of Discover Financial Services approximately $35.3 billion separate deal not involving student loan portfolio) reflects publicly available SEC filings, press releases, and business publications at last review. Discover legacy loan benefits (cosigner release 12 consecutive on-time principal and interest payments plus credit review; voluntary death and total permanent disability discharge as one of 5 private lender categories offering voluntary contractual discharge — Sallie Mae Smart Option, Discover legacy, Laurel Road, Wells Fargo legacy sold to Firstmark Services 2020-2021, and New York Higher Education Services Corporation; 0.25% auto-pay interest rate discount; standard hardship forbearance) continue under Firstmark Services administration per legacy Discover promissory note terms. Discover 1% Cash Reward for GPA 3.0+ was Discover-originated only and is no longer available for new applications since Discover ceased originations January 31, 2024 and Firstmark is a servicer not a lender. CFPB 2015 Consent Order against Discover Bank ($18.5 million penalty for illegal student loan servicing practices including overstating minimum payments due, sending inaccurate tax information relating to 1099-C debt cancellation reporting, and using illegal collection tactics) reflects publicly available Consumer Financial Protection Bureau enforcement documentation. Statutory references (FDCPA 15 U.S.C. § 1692g and § 1692k; Fair Credit Reporting Act 15 U.S.C. § 1681 et seq.; CFPB Regulation F 12 C.F.R. § 1006; FTC Holder Rule 16 C.F.R. § 433.2; 11 U.S.C. § 523(a)(8) student loan discharge; IRC Section 221(d)(1) qualified education loan definition; IRC § 61(a)(12) and § 108 cancellation of indebtedness income; Higher Education Act Title IV) are summarized for educational purposes; consult licensed consumer protection professionals for case-specific advice. Report suspected FDCPA violations at ftc.gov and consumerfinance.gov/complaint. Last reviewed: May 2026.