Discover Student Loans Review

Learn all about the pros and cons of Discover undergraduate and graduate student loans, refinancing, application process, interest rates and repayment plans from here.

Updated by Gowtham Ramesh on 25th April 2019


In recent times the education expenses are reaching the limits where it promotes borrowers to look for alternatives for their student loans. As we discuss there are a lot of students who have moved towards private education loans to cover the expenses and one among the many private lenders is Discover student loans. It offers competing options for private college loans.

The financial crisis of 2008 made many private student loan providers to move out of the market. Discover hence started to offer its private loans, as a result, it became one of the biggest lenders in the industry.

It provides loans for undergraduate and graduate students and also offers consolidation of loans with a decent interest rate, term, and limits.


Table of contents

Number  Topics
1. Discover Student Loans
2. Undergraduate Student Loans
3. Graduate Student Loans
4. Discover Student Loan Refinancing
5. Discover Residency Loans
6. Discover Bar Exams Loans
7. Discover MBA Loans
8. Discover Health Professions Loans
9. Discover Law Loans
10. Trouble paying Discover student loans
11. Pros and Cons of Discovery Student Loans
12. Applying for Discover Student loans
13. Discover student loans review FAQs

Discover Student Loans Rates

Discover College Loans are offered by Discover Bank. Where most people know Discover by its credit card, Discover Student Loans is the biggest student loan provider in the market.

It grants private students loan choices for various types of students in Undergraduate, Graduate, MBA, Law, Residency and Bar Exams levels. Total loan is limited by applying based on the program you have opted for.

Following are the rates, terms, and amounts offered by them.

Description Rates and Percentage
Fixed Rates 5.99% – 13.49%
Variable Rates 4.24% – 12.24%
Loan Terms 15 or 20 years
Loan Amounts $1,000 to 100% of school-certified college costs

Discover student loans eligibility and requirements


Discover Undergraduate Student Loans

Discover offers private loans to undergraduate students who are listed as qualified and have attended accredited college or university for at least part-time. It has various determinants to be considered and noted about undergraduate student loans such as Interest rate, repayment terms, and fees.

Interest Rates

The loans that are issued by the Discover are based on the creditworthy of borrowers and other several factors, where the applicants who have higher competitive interest rates can qualify for borrowers. With the variable rates start around 4.24% APR and can go up to 12.2% APR.

The lower rate consists of interest only repayment discount which is granted as an award for Auto Debit program where a reduction of 0.25% is applicable.

Discover undergraduate and graduate student loans, refinancing and application process and payment plans from here

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The variable interest rate is fixed lesser than the fixed rate of products. The fixed rate starts around 5.99% APR for the most creditworthy peoples and can go up to 13.49% APR for the lower qualified borrowers. If you opt for a variable rate Discover loans then you need to be aware that the interest rate of yours might be charged over time as it is attached to an index.

Fees, Loan limits and Repayment Options

Undergraduate student loans for college usually has a 15-year repayment term. Where you do not have any required fees on the loans it includes application, origination, prepayment penalties, and late fees

Repayment options for Discover student loans of undergraduates have 3 options to get it planned

Fixed payment plan 

It needs a loan payment of $25 when you are in school and also the remaining principal and interest payments after when school gets ends.

Deferred payment 

It does not require any payments for six months til or when the borrowers leave it as part-time attending status or graduates.

Interest only 

It permits borrowers to pay any of the interest as shortly because the loan is funded even when you are in school.


Discover Graduate Student Loans

Discover offers private loans to Graduate students who are listed at accredited college or university for at least part-time. It has several factors to be considered about graduate student loans such as Interest rate, repayment terms, and fees.

Interest rate

The interest rate which is offered by the graduate students is both variable and a fixed rate of interest. Where the variable interest rate is around 4.24% and can go up to 13.24% APR and fixed interest rate starts around 5.99% and can go up to 13.99% APR

Fees, Loan limits and Repayment options

Graduate student loans for students usually have a 20-year repayment period. Where you do not have any required fees on the loans it includes application, origination, prepayment penalties, and funding fees. The limits are based on the school certification total cost of and the minimum amount is $,1000.

Repayment options for Discover student loans of graduates have 3 options to get it planned

Fixed payment plan -

It needs a loan payment of $25 when you are in school and also the remaining principal and interest payments after when school gets ends.

Deferred payment -

It does not require any payments for six months til or when the borrowers leave it as part-time attending status or graduates.

Interest only -

It permits borrowers to pay any of the interest as shortly because the loan is funded even when you are in school.


Discover Student Loan Refinancing

Discover provides both offers Consolidation or refinancing of your loans for the equipped borrowers. Where you can refinance federal and private education loans into one new loan. Consolidation is by which the process of refinancing the old private loans or federal loan to a new loan with lower interest rate along with favorable repayment periods.

Description Rates and Percentage
Fixed Rates 5.74% – 8.49%
Variable Rates 4.74% – 7.74%
Loan Terms 10 or 20 years
Loan Amounts $5,000 – $150,000

Consolidation and refinancing can be a good option when you are looking to make a single payment on the student's loan with the option to get lower monthly payments. You are most likely to get it done once they have started to work in a full-time job with an approved credit score and records of income.

Interest Rate

Discover private student consolidation rates start around 4.74% to 7.74% APR for the variable rate of loans and the fixed rate of loan has a 10-year repayment period and the rates are around 5.74% and can go up to 8.49% APR and the 20 year period starts from 5.99% to 8.49% APR.

Fees, Loan limits and Repayment Options

The repayment term for consolidation of a student loan under Discover loan is either a 10 year or a 20 year. It's different compared to other private student loans where consolidation loans with the lender don't need fees like origination, application or prepayment. It has a limit of $150,000 on the loan.

As consolidation of loans with the help of Discovery and it is open for students who are graduated or leaving the degree program. The only option of repayment that is available is full principal and interest which gets started after 30 days from the time of the loan is financed.


Discover Residency Loans

Looking into the medical school where most of the doctors go into a residency program, Where most of these programs pay doctors, While they need to pay for the housing and other moving costs. Which includes residents often go into a high cost of starting a family while they are in the program. The loan can help you with the cost of residency, internship, relocation and exam review.

There are some limitations for residency loan when looking at other products. Where you can only borrow $18,000 for Allopathy, Dentistry, Optometry, Osteopathy, Pharmacy, Podiatry and Veterinary Medicine. $5,000  for Nursing, Occupational Therapy, Physical Therapy, and Physician Assistant.

These loans generally don't need a cosigner if you are having a good credit history of records in case of not you need a co-signer. Where you are in residency you can defer the payments for a period of 5 years. Where you can also take the option of making $25 per months at this time.

The repayment period of these loans is 20-years. The variable rate of interest is 5.12% to 8.87 % APR and the fixed rate of interest is around 6.49% to 9.99% APR. You can also avail a reduction of 0.25% when you opt for an auto-debit program.

Learn all about the pros and cons of Discover private student loans for residency and its benefits and other options.

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It might be possible to avoid taking loans while in the residency. Residency salaries are quite smaller and they should be covering the expenses which are associated with the residency.

Looking for negotiating for a relocation package will be making the cost and will push you in the debt. If you are qualified for the relocation of package then you shouldn't turn to loans soon. Look for the options and opening a 0% APR credit card.

Use the credit card to finance the expense for a few months and then work towards repaying it. Residents should also consider refinancing their student's loans at lenders. The offers and perks to residents and doctors may refinance with them where it can save a lot of money for you


Discover Bar Exams Loans

In the case of law students are tough with the living expenses and other costs that are arriving on them in the time of studying where it can be made simple by with the loan it helps with their bar exam cost with a lower interest rate.

It allows you to to take $16,000 for bar exams prep. Where it's available for current law schools students and it has a grace period where it can be extended for a period of 6  months after you are completing your graduation. Further, if you are already a graduate and then the repayment period will be starting.

Where these loan doesn't need a cosigner and if you are having a good record of history then you may no need of it if it's another way then you will be needing a cosigner. The loan has a repayment period of 20 years.

The interest rate of variable rate is around 5.12% to 12.12 % APR and the fixed rate of interest is around 6.99% to 12.99% APR. You can avail the reduction of 0.25% when you enroll in an auto-debit program.

This is best for people who are looking for jobs and cannot find one where it can pay him a salary when you are in the study for Bar exams.  

These arrangements are a familiar story. Most of the law school graduates require a loan just to be a legal firm. When you fail to cover these expenses in the gap of graduation and the bar then you will be considered a few options which consist of cutting cost to the bare minimum.


Discover MBA Loans

In the case of MBA students are tough with the living expenses and other costs that are arriving on them in the time of studying where it can be made simple by with the loan it helps with their exam cost with a lower interest rate.

It allows you to to take 100% of your school-certified cost of attendance and the minimum amount for the loan is $1,000. The money will be delivered directly to your school. You get cash reward on your Discover loans when you score 3.0 GPA or more than it. The maximum term provided to the loan is 20 years.

They offer variable and fixed interest rate where the variable rate starts around 4.24% and can go up to 13.24% APR. The fixed rate of interest starts at 5.99% to 13.99% APR. You get a deduction of 0.25% when you enroll yourself in the auto-debit program. Variable rates might change every quarterly in the span of loans life.


Discover Health Professions Loans

Discover offers '0' fees for private students loans for students who are graduating in Allopathy, Osteopathy, Dentistry, Nursing, Pharmacy, Physician Assistant, Occupational Therapy, Optometry, Podiatry, or Veterinary Medicine.

It offers you to use 100% of your school certification to complete it and the minimum amount which lends is $1,000 and the money is sent directly to the school so you cannot borrow more than what you need. Co-signer might be needed in the case of low credit score or no history of credit. You can go to a creditworthy cosigner.

It offers variable and fixed interest rate to private student loans. The variable rate of interest starts at 4.24% and goes up to 10.74% APR. The fixed rate of interest starts at 5.99% and up to 11.99% APR. You also get a 0.25% deduction if you get listed in the auto-debit program. You get a cash reward of 1% of your loan if you have a GPA of 3.0 or more. The maximum term provided to the loan is 20 years.


Discover Law Loans

In the case of law students are tough with the living expenses and other costs that are arriving on them in the time of studying where it can be made simple by with the loan it helps with their bar exam cost with a lower interest rate.

It offers you to use 100% of your school certification to complete it and the minimum amount which lends is $1,000 and the money is sent directly to the school so you cannot borrow more than what you need. Co-signer might be needed in the case of low credit score or no history of credit. You can go to a creditworthy cosigner. By applying for it with a creditworthy cosigner can help your loans approval and a lower rate of interest.

It offers variable and fixed interest rate to private student loans. The maximum repayment term is 20-years. The variable rate of interest starts at 4.24% and goes up to 10.34% APR. The fixed rate of interest starts at 5.99% and up to 11.99% APR. You also get a 0.25% deduction if you get listed in the auto-debit program. You get a cash reward of 1% of your loan if you have a GPA of 3.0 or more.


Trouble paying Discover student loans

The company wants its borrowers to make success and repay their student loans in order to do it they have created a number of programs to help them and avoid default. Further, they have offered six to nine months of deferment in school programs and following are some of the plans of Discover offers.

Early repayment help -

A three-month extension of your grace period.

Payment Extension -

If you fell into delinquency, Discover can revive your loans if you create three consecutive payments in ninety days.

Reduced Payments -

Reduce your payments to simply the interest quantity for 6 months

Forbearance -

Payments stop for 6 months, however, interest continues to accrue

Hardship -

Discover reduces your charge per unit for 6 months.


Pros and Cons of Discovery Student Loans

The benefits and downside of Discovery student loans are given here.

Pros

  • The lender is able to get 100% of their school-certified cost where it doesn't need any fees on the student loans which consist of origination, application and late fees.

  • Students who have a good grade with 3.0 GPA or more can able to get a cash reward for 1% of new undergraduate or graduate loan which they have taken.

  • It can pay you to study in the case of Discovery borrowers.

  • They have good customer service.

  • They also have pride in having only U.S. based student loan expert.

  • The application is also simply stating that student and co-signer can able to fill it out within 15 minutes or even lesser.

Cons

  • The significant downside of the is having the minimum numbers of repayment periods provided to borrowers.

  • Undergraduate borrowers usually have a 15-year term, indifferent to the amount borrowed.

  • Graduate borrowers usually have a 20-year term.

  • Consolidation offers your 10 or 20-years of the repayment period.

  • They have different provision from federal student loans such as income-based repayment, forbearance, and forgiveness cannot be found with private student loans from Discover


Applying for Discover Student loans

To apply for a Discovery student loan is a very simple process which can be done online. Where you need to give your information about the current loans along with their income, residence, social security number, and date of birth.

After getting this information through the application it will process it and review and make a decision on a few days. Where the loan fund for undergraduate and graduate students are paid to the school after. In consolidation, the loan is processed and sent to the borrower's current student loans services in order to pay off.

If you are trying to be a co-signer behalf of your child then you can look and complete the application by yourself first or you can start with the cosigner application. If the student gets it filled out first then the discover will send them a key code of cosigner where it can be used to start the cosigner application.

In order to complete the application, you will be needing your social security number, employer information and the financial information where it consists of rent or mortgage payments and the permanent address. these sites will make you enter the information and you can receive a credit result within 15 minutes even lesser.


Discover student loans review FAQs

1. How long does it take to get a student loan from Discover?

Usually, they will send the money to the college without any interference of others. Where it generally takes around 1-2 weeks before the money is transmitted to you back. From the date of the loan is approved this takes place. It can even take 3-10 weeks for you to get the student loan money under the private student loan.

2. Are Discover students loan a good idea?

Discover is the biggest market leader in the private student loan. IT has no fees, interest rate of low and other options such as forbearance but, it's hard to get one. Borrowers required to have a great score or the cosigner to get a loan. The good thing is that it is on a credible platform.

3. What type of loan is a Discover student loan?

Discover college loans are provided by Discover banks where most of the student loans are provided by them making them as the biggest lender on the market and further it's known for its credit cards wisely. It even offers private student loan options for many of the students.

4. Can I get a discover student loan without a cosigner?

Generally when you don't have a good application or a cosigner at your side. The interest rate of yours will be higher as lenders see you as a risk rather a borrower. To get a private loan without a cosigner is possible but you need to do is look for the credit score and other essential to get a loan call them or meet in person to get all the information that you are required to get a loan without co-signer.

5. Can you pay off Discover student loans early?

Looking for Paying off your student loans as soon as possible so you can save some money. You can select this in the process of application where you need to be in school and in the grace period. While starting to make the process of payments while you are in school in that you pay a little and most will go towards the principal balance in the repayment. The less interest and reduce the cost of your loan.

6. How do Discover loans work?

The loans of Discover can be used for other purposes too. Where it works particularly good for the debt consolidation as it lowers the rates, Makes direct payments of the creditors and gives you the flexibility of repayment terms and the company even provides you free tools to get manage of your debts and get an estimate of monthly payments on your personal loan site.

7. How do I apply for a Discover student loan?

The process is very simple and can be done under 15 minutes making it easy for everyone and trying to be on real-time by serving it on online.

Apply for it under their site it will take you around 15 minutes or even lesser. Providing a cosigner if it required in the student loan might be an option to apply with a credit-worthy co-signer. Choose your interest rate type and the repayment option and sign in and accept the loan of yours.

8. Can I consolidate my discover student loans?

You get the option to consolidate your federal and private student loans into a single loan making convenient to do Monthly payments at a lower rate. Where you need to be qualified for consolidation of loans on your own. If you take one to apply with a co-signer who has creditworthiness where you might end with a lower rate of interest.

9. Is Discover student loan a federal loan?

No, Discover student loans are in responsible for borrowing and encouraging students to use the grants at maximizing, other benefits of financial aid and scholarships. When you are looking and comparing at the options that are available you might find the private student loans are much competing than the federal student loans.

10. Can you defer Discover student loans?

You might be able to postpone the private loan of your payments under the deferment option. During this deferment period, the interest will is rising and accruing on your loans. Where you can choose to pay the interest that you are getting and then it will add any unpaid interest of your principal balance at the end of your deferment period.