Wednesday by the credit card lender, Discover Financial Services, it will sell a portfolio of student loans to takeover behemoths Carlyle and KKR for as much as $10.8 billion.
The loan balance of approximately $10.1 billion will be sold at a premium, only a few lenders have left the market in recent years, including Discover, which had been considering selling the group since November.
Dealing with Discover could also reduce the risk associated with its loan book as it gets ready to be bought by Capital One. In American politics, student loan debt has gained a lot of attention.
A plan that would have eliminated $430 billion of this debt was introduced by President Joe Biden in 2022, however it was prevented by the Supreme Court last year in response to states with a conservative slant. Nearly one in five Americans say the issue will affect their vote.
Source (CNBC)
