Discover Financial Services announced that the company’s board of directors has authorized Discover management to explore the sale of the Discover Student Loans portfolio and the transfer of servicing of these loans to a third-party provider as it pursues strategic alternatives for the Discover Student Loans business. Additionally, Discover will stop accepting new applications for student loans February 1, 2024. There is no impact to current Discover Student Loans customers or their loans or payments at this time. “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. 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,” said John Owen, Discover’s interim CEO and President. Discover has retained Wells Fargo Securities, LLC as its financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as its legal advisor to support its exploration of strategic alternatives for Discover Student Loans.
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
See Insiders’ Hot Stocks on TipRanks >>
Read More on DFS:
- Student Loan Business Sale Rockets Discover Financial Services (NYSE:DFS) Upward
- Early notable gainers among liquid option names on November 30th
- Discover initiated with an Equal Weight at Barclays
- Mortgage applications increased 2.5% from last week, MBA says
- Top Analyst Sees Opportunity Brewing in These 2 Credit Card Stocks