Discover Financial Services Sells Student Loan Portfolio for Up to $10.8 Billion

Reported 3 months ago

Discover Financial Services announced the sale of its student loan portfolio to Carlyle and KKR for up to $10.8 billion, a move aimed at de-risking its loan book ahead of its acquisition by Capital One. The loans, with a principal balance of nearly $10.1 billion, will be sold at a premium. This decision comes as student debt remains a contentious issue in U.S. politics, especially following President Biden's unsuccessful attempt to forgive $430 billion in such debt.

Source: YAHOO

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