(Bloomberg) -- Discover Financial Services is exploring the sale of its student-loan business, and will stop accepting new loan applications in February.
The sale won’t impact existing customers or their loans, Riverwoods, Illinois-based Discover said in a statement Wednesday. The announcement follows a Bloomberg News report in September that Discover was exploring the potential sale of the business, and analysts said at the time that the business could attract interest from Navient Corp. and SoFi Technologies Inc.
Discover’s board determined during a recent review that selling the business would allow the company “to focus on our core banking products, capitalize on our growth opportunities and deliver long-term shareholder value,” interim Chief Executive Officer John Owen said in the statement. “We are committed to a path forward that enables a seamless transition for our customers.”
Wells Fargo & Co. will be Discover’s financial adviser, and Skadden, Arps, Slate, Meagher & Flom LLP will serve as its legal adviser. Discover said there is no current deadline for the sale.
--With assistance from Gillian Tan.
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