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Key takeaways
- Discover is no longer making new student loans.
- Borrowers can still access their loan information on the Discover website.
- There are plenty of other student loan lenders to choose from with competitive rates and perks.
As of Jan. 31, 2024, Discover is no longer accepting new student loan applications. Existing customers can still log in to track the status of their payments through the lender’s servicing portal.
Billing statements and tax documents will still be available in the Discover Student Loans Account Center until April 2025. Students looking for an alternative can find several other student loan lenders that offer the same simple application process, rewards for good grades and flexible repayment options offered by Discover.
Alternatives to Discover student loans
Undergraduate and graduate students can choose from a variety of other similar bank-backed student loan options to fill the gap left by Discover’s exit from student loan lending:
| Key features | Sallie Mae | Citizens Bank | SoFi |
|---|---|---|---|
| Bankrate score | 4.6 | 4.6 | 4.8 |
| Loan amount | $1,000 to 100% cost of attendance | $1,000–$225,000 | 100% total cost of attendance |
| APR |
Fixed: 3.49%–15.49% Variable: 4.54%–14.71% |
Fixed: 3.99%–15.59% Variable: 4.97%–15.59% |
Fixed: 3.54%–15.99% Variable: 4.64%–15.99% |
| Term lengths | 10–15 years | 5–15 years | 5–15 years |
| Loan types | Undergraduate, graduate, MBA, medical, medical residency, dental, dental residency, health professions, law, bar study | Undergraduate, graduate, law, health professions, MBA, bar study, medical residency, parent, refinancing | Undergraduate, graduate, law, MBA, parent, refinancing |
Sallie Mae
Sallie Mae provides qualified students pursuing undergraduate and graduate degrees with loans up to the full cost of attendance at competitive rates. Undergraduate borrowers can choose repayment terms of up to 15 years, while graduate degree borrowers can choose terms as long as 20 years to help lower their monthly payments.
Sallie Mae’s impressive array of graduate degree loans helped it earn Bankrate’s 2025 award for best graduate student loan lender. It also offers unusual flexibility with financing options for students attending less than half time, attending online or summer courses and even students enrolled in professional certification courses.
Citizens Bank
Citizens Bank offers both new and refinance loan options for undergraduate and graduate students. Its low rates and 20-year term option for parent loans helped it earn Bankrate’s 2025 Best for Parents award.
One place it stands out from Sallie Mae and other lenders is in its refinance loan options, which are offered to both graduate and undergraduate borrowers. Qualified borrowers may be eligible for its multiyear approval program, which saves students the stress of having to reapply for financing each school year.
SoFi
SoFi gives student loan borrowers a wide variety of online graduate and undergraduate financing options including refinance options. Its flexible repayment terms and competitive rates are just a few reasons it earned Bankrate’s 2025 Borrowers with Good Credit award.
SoFi offers some standout perks that include autopayment discounts and even cash bonuses for good grades. Medical residents may get an extra break if they qualify for SoFi’s special low payments while completing their residency.
What happened to Discover student loans?
According to Discover interim CEO John Owen, its board decided to stop making new loans and transfer the servicing to focus on its core banking products and other business priorities. In a press release on Jan. 31, 2024, Owen shared the following:
“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.”
In July 2024, Discover announced the sale of its private student loan portfolio. The company’s online portal is still active for borrowers with existing student loans.
Bottom line
There are plenty of student lenders to choose from that offer rates, terms and benefits similar to Discover. It’s best to find out what federal loans you’re eligible for, and then compare private student loan options to supplement what you need to pay for college expenses.
Watch for special benefits like good grade discounts, extra hardship flexibilities and refinance options. One caveat: The best APRs for private student loans are reserved for high credit-score borrowers, so you may need a creditworthy co-signer to get them if you have low scores or no credit.
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