08:50 AM EDT, 07/17/2024 (MT Newswires) -- Discover Financial Services ( DFS ) said Wednesday that its Discover Bank unit has agreed to sell its private student loan portfolio to one or more partnerships comprised of investment vehicles and accounts managed by Carlyle Group ( CG ) and KKR (KKR).

Discover said that based on certain assumptions, the purchase price payable to the company in the deal is expected to be up to roughly $10.8 billion, which is at a premium to the principal balance of the portfolio.

The company said the principal balance of the loans was about $10.1 billion as of June 30.

The deal is expected to be completed in several closings by the end of 2024, Discover said.

The company said Nelnet's ( NNI ) Firstmark Services division will be responsible for servicing the loans upon the sale.

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