Key takeaways:-
While Discover no longer offers new student loans, current borrowers can still manage their accounts online. Many alternative lenders now provide competitive rates and valuable benefits.
As of January 31, 2024, Discover has officially stopped accepting new applications for student loans. However, current borrowers can still access their accounts and manage payments through Discover’s servicing portal. Billing statements and tax forms will remain available in the Discover Student Loans Account Center until April 2025. Students seeking alternatives can explore other lenders offering easy applications, academic rewards, and flexible repayment plans.
Discover Student Loans Alternatives
With Discover stepping away from student loan lending, both undergraduate and graduate students still have access to a range of reliable, bank-backed alternatives. These lenders offer competitive rates and flexible loan terms, making it easier to finance your education and bridge any financial gaps.
| Key Features | Sallie Mae | Citizens Bank | SoFi |
|---|---|---|---|
| Bankrate Score | 4.6 | 4.6 | 4.8 |
| Loan Amount | $1,000 up to 100% of total school-certified costs | $1,000 to $225,000 | 100% of the total cost of attendance |
| APR | Fixed: 3.19%–16.99%Variable: 4.37%–16.49% | Fixed: 3.49%–14.99%Variable: 4.95%–15.43% | Fixed: 3.29%–15.99%Variable: 4.39%–15.99% |
| Repayment Terms | 10 to 15 years | 5 to 15 years | 5 to 15 years |
| Loan Types Available | Undergraduate, graduate, MBA, medical, dental, residency, law, bar study, health professions | Undergraduate, graduate, law, health professions, MBA, bar study, medical residency, parent loans, refinancing | Undergraduate, graduate, law, MBA, parent loans, refinancing |
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Sallie Mae
Sallie Mae offers eligible undergraduate and graduate students funding that can cover the total cost of attendance, all at competitive interest rates. Undergraduate students have the option to choose repayment plans extending up to 15 years, while graduate students can select terms of up to 20 years—making monthly payments more manageable.
Thanks to its wide range of loan options tailored specifically for graduate programs, Sallie Mae was named Bankrate’s Best Graduate Student Loan Lender for 2025. The lender stands out for its flexible borrowing choices, including support for part-time students, online learners, summer school attendees, and even those enrolled in professional certification programs.
SoFi
SoFi provides a broad selection of online student loan solutions for both undergraduate and graduate students, along with refinancing options. Thanks to its flexible repayment plans and competitive interest rates, SoFi was honored with Bankrate’s 2025 Award for Borrowers with Good Credit. What sets SoFi apart are its impressive benefits, such as discounts for setting up autopay and cash rewards for strong academic performance. For medical residents, SoFi offers an added advantage — those who qualify can access specially reduced payments throughout their residency period.
Citizens Bank
Citizens Bank provides flexible loan solutions for both new and refinancing needs of undergraduate and graduate students. Recognized with Bankrate’s 2025 Best for Parents award, it stands out for its competitive interest rates and up to 20-year repayment terms on parent loans.
Unlike Sallie Mae and many other lenders, Citizens Bank also offers refinancing options to both undergraduate and graduate borrowers. Eligible applicants can benefit from the multiyear approval program, helping students avoid the hassle of reapplying for funds every academic year.
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Discover to Exit Student Loan Business to Focus on Core Banking Services
Discover Financial Services has announced a strategic shift away from the student loan sector. Interim CEO John Owen revealed that the company’s board has decided to halt new student loan originations and transfer loan servicing responsibilities, aiming to sharpen its focus on core banking operations and other high-priority areas.
In an official press release dated January 31, 2024, Owen stated:
“Following a recent evaluation, our Board concluded that selling and transferring the servicing of Discover’s student loans aligns with our broader business strategy. This move will allow us to concentrate on our main banking offerings, leverage new growth opportunities, and maximize long-term value for our shareholders.”
By July 2024, Discover confirmed the sale of its private student loan portfolio. However, the company’s online portal remains active, ensuring that existing borrowers can still manage their current student loans without disruption.
When exploring student loan options, you’ll find many lenders that provide competitive rates, terms, and perks much like Discover. Start by checking which federal student loans you qualify for, and then look into private student loans to help cover any remaining college expenses.
Be on the lookout for valuable extras such as discounts for good grades, flexible repayment options during financial hardships, and opportunities to refinance later on. Keep in mind, though, that the lowest interest rates on private loans are typically offered to borrowers with excellent credit. If your credit score is low or you haven’t built credit yet, having a creditworthy co-signer can improve your chances of securing a better rate.
