Specifically, Discover is getting out of the private student loan business. Fully. They are sending letters to borrowers in a bankruptcy that they are forgiving the loans.
What does this mean? Well, I would want to get in on this immediately and get a bankruptcy filed to take advantage of this situation. I expect someone will come along to buy their portfolio. Why not get a court order that says this debt is gone while you can??
Remember, debt forgiven before 12/31/25 is tax free federally, and debt discharged in a bankruptcy is always tax free.
Talk to us if you have questions. This is big. Please don’t ignore and let this opportunity go to waste. If you wait until after the new year, I’m guessing the market imbalance will fix itself in some fashion and you’ll be back on the hook.