Discover Financial Services in Riverwoods, Ill., is exploring the sale of its student lending business.
The company said in a press release that its board approved the process, which could include transferring the servicing of student loans to a third party.
Discover said it will stop accepting new student loan applications on Feb. 1.
The sale would allow Discover to focus more on its core banking products, capitalize on our growth opportunities and deliver “long-term shareholder value,” John Owen, Discover’s interim president and CEO, said in the release.
Discover has hired Wells Fargo Securities and Skadden, Arps, Slate, Meagher & Flom to advise on the potential sale.