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Discover lands servicer for student loan portfolio

January 18, 2024

Discover said in November it was exploring a sale of its student loan portfolio and transferring servicing of that portfolio to a third-party servicer. The company, facing multiple compliance-related issues recently, has run into regulatory scrutiny over its student loan business. That includes facing consent orders from the Consumer Financial Protection Bureau.

Lincoln, Nebraska-based Nelnet “is fully aware of the consent order requirements,” Greene told analysts during the company’s fourth-quarter earnings call. “They were chosen because they’ve got a track record in terms of being able to service a portfolio such as this, and they’ve dedicated both technology and resources to ensure a seamless transition,” he said.

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