Discover Consolidation Refinancing

Discover is a Private student loan Provider which provides services such as consolidation and refinancing of student loans with new interest rates and monthly payments amounts and its provides a unique service of resetting the term of the loan which reduce the monthly payment of the borrower

Updated by Annany Sah on 10th June 2020

Discover provides services such as student loan consolidation and student loan refinancing. Upon refinancing you get a private student loan that combines and refinances multiple education loans into one new loan with a new interest rate, repayment term and monthly payment amount.If you are extending your repayment term, this could result in an increase in your total cost over the life of the loan.Since most private education loans do not compete on price, a private consolidation loan is merely replacing one or more private education loans with another. So the main benefit of such a consolidation is obtaining a single monthly payment. Also, since the consolidation resets the term of the loan, this may reduce the monthly payment.

Table of Content

Who is Discover?

Discover is known for its credit card Business because it started out from it and went on to provide  services like loans, credit cards and Online transactions of Home Equity Loan Payment.Discover is a Loan providing company which provides different types Loan such as Personal Loans,Household Loans, Student Loans, etc. Our main focus is on the Student Loan and that to Discover Private Student Loan Consolidation Refinancing.Private student loans from Discover can cover up to 100% of school-certified college and graduate school costs. Zero fees, choice of fixed or variable interest rates and cash rewards for good grades.


What is Debt Consolidation?

Debt consolidation rolls high-interest debts, such as credit card bills, into a single, lower interest payment. It can reduce your total debt and reorganize it so you pay it off faster.If you’re dealing with a manageable amount of debt and just want to reorganize multiple bills with different interest rates, payments and due dates, debt consolidation is a sound approach you can tackle on your own.  

Consolidation of Federal Student Loans

Federal student loan consolidation combines multiple federal loans into a single federal loan through the Department of Education. You may need to consolidate to be eligible for some federal loan repayment programs, but federal consolidation won't lower your interest rate. It may lower your payments by extending them.

Consolidation of Private Student Loans

A private consolidation loan is a private student loan that combines and refinances multiple education loans into one new loan with a new interest rate, repayment term and monthly payment amount. This could result in a lower interest rate and/or a lower monthly payment.


Looking to refinance your student loans? Find the best companies to refinance your student loans.


Why choose Discover?

Refinancing student loans through Discover is a good option for financially strong borrowers who may need wiggle room in the future. Discover offers a wider range of repayment assistance programs compared with other student loan refinance lenders, including the option to temporarily reduce payments.

There are few points which tells why to choose Discover

  1. It provides a Loan term of 15 years

  2. The minimum amount provided is $1000

  3. The maximum amount depends on the total  amount of attendance minus your financial aid

  4. The grace period given to the borrower is about 6 months if he/she is late on their payment

  5. The types of Loans provided by Discover are Graduate Loans, Bar Loans, Residency Loans

Interest Rates and Fees

  1. The Loan amount is $5000 to $1,50,000

  2. The time period of the Loan Is 5 to 10 Years

  3. No transfer of loan from parent to child

  4. There is no Late fees

  5. There are no repayment penalty


7 Reasons to consider student Loan Consolidation

Here are 7 reasons to consider Discover and the services it provides - 

1. It's Free

If you do it yourself, consolidating your federal student loans is free. The Department of Education says that the online application process takes most people less than 30 minutes to complete. However, some people hire a company or student loan expert to guide them through the process.

2.It Simplifies Your Bills

Many borrowers have more than one student loan to keep track of each month. Consolidating or refinancing student loans could make it easier to stay organized, potentially saving you time and helping you avoid mistakenly missing a payment.The consolidation process itself could take several weeks or months. You should continue making loan payments until the servicer you're working with says your original loans are paid off and disburses your new consolidation loan.

3.Different Repayment Plans Are Available

You'll choose the repayment plan for your Direct Consolidation Loan when you apply for consolidation. Switching to an income driven plan or the Extended Repayment Plan could be a good option to reduce your monthly payment amount. You can always change your repayment plan in the future.

4.Forbearance and Deferment Timelines Reset

Federal and private student loans have limitations on how long they can be placed in forbearance or deferment - temporary periods during which you don't have to make loan payments. Because consolidation results in a new loan, forbearance and deferment limits are reset by the process. This may be useful if you've had trouble making payments in the past and want to ensure that you have these options in the future.

5.New Loan Servicer

When you consolidate your federal loans, you'll choose a new student loan servicer.For private loan consolidation, you can choose the lender that best fits your circumstances based on the loan terms you were approved for and the services it offers. If you are changing from your current lender, then your servicer will also likely change.

6.New Interest Rate 

A Direct Consolidation Loan has the weighted interest rate of the federal loans you combined. This means that unless you change your repayment plan, you'll owe roughly the same amount each month and pay about the same amount in interest over the lifetime of the loan.The interest rate on a private consolidation loan will be fixed or variable depending on what you choose, and it could be lower than the original interest rates on your private or federal loans.

7.Consolidating Federal and Private Loans Together

You may be able to consolidate your private and federal loans together with a private lender who offers combined consolidation. Similar to consolidating your private loans, your new loan's interest rate will depend on several factors, including your credit history and choice of a fixed or variable rate. A creditworthy cosigner could increase your chances of approval and help you secure a lower interest rate. If you're eligible for the loan on your own, you could also use consolidation to release a cosigner from your existing student loans.


Worried about your college tuition? Find the best student loan for you?


  Consolidation of private & federal student loans

Discover provides consolidation for both private and student loans. There is no limit for the number of loans you want to consolidate, therefore you can refinance multiple loans into a single loan with discover. 

Usually, this process can take a long time. After filling the application the approval for consolidation can take up to 45 days to process. Ideally, the process happens online. You pay 0 amount for the refinancing process. 

 

Discover Student Loans

Discover’s student loans are a good option for borrowers who want flexible repayment options in case they need wiggle room in the future. This loan is a private student student loan. Discover offers a wider range of repayment assistance programs compared with other student loan lenders, including the option to temporarily reduce payments.Discover provides a very generous flexibility for those borrowers who are struggling and also are unable to meet the payments on time whereas the foriegn exchange student are allowed a Cosigner as it is not allowed for a local borrower.

Discover provides  in house service for its borrowers so that the borrowers don’t need to find every possible option for their student Loans. Discover Bar Study loan is a special category of student loans offerd by Discover for the Students who take Bar Exams. 


A quick review of the other lenders to consider

There are many lenders ready to provide a student loan or any other type of loan to its borrowers and some of the lenders are listed below:

1.Money Mutual

Money Mutual is a gateway to many lenders that each offer short-term loans of up to $2,500 — and each lender considers all applications, regardless of credit history. Your initial pre-qualifying application takes less than five minutes to complete, and, if approved, you could receive multiple loan offers.

These are some of the points just to summarize the whole thing

  1. Short-term loans up to $2,500

  2. Online marketplace of lenders

  3. Funds available in as few as 24 hours

  4. Simple online form takes less than 5 minutes

  5. Trusted by more than 2,000,000 customers

  6. Not available in NY or CT

 2.Auto Credit Express

 Since 1999, Auto Credit Express lending network has closed more than $1 billion in loans to consumers who have bad credit. The network works in all 50 states and doesn’t limit you to which dealer you use to purchase your new car. Applicants must have at least $1,500 in verifiable monthly income to qualify. 

 These are some of the points for the summarization of the same

  1. Network of dealer partners has closed $1 billion in bad credit auto loans

  2. Specializes in bad credit, no credit, bankruptcy and repossession

  3. In business since 1999

  4. Easy, 30-second pre-qualification form

  5. Bad credit applicants must have $1500/month income to qualify

3.Cash USA

Cash USA offers loans of up to $10,000 to applicants who earn at least $1,000 per month, after taxes. If approved, you could have as many as 72 months to repay your loan with competitive interest rates that start at 5.99%. But keep in mind that the network hosts many lenders, and each one sets its own term lengths and interest rates.

These points are the summarization the above lender

  1. Loans from $500 to $10,000

  2. All credit types accepted

  3. Receive a loan decision in minutes

  4. Get funds directly to your bank account

  5. Use the loan for any purpose


Consolidation vs refinancing

 

    

    Student loan Consolidation 

  1. Combines many federal loans into a single loan.

  2. Usually applicable for only federal loans. 

  3. High-interest rates. 

  4. Even though the extension of repayment is possible, gradually interest rates get high.

  5. It is possible to apply for federal loan protections, repayment options, and forgiveness programs




     Student loan refinancing

  1. Combines both private and student loans into private loans.

  2. Applicable to both private and student loans. 

  3. Lower interest rates. 

  4. Saving money under this scheme is possible but not eligible to apply for  federal loan protections, repayment options, and forgiveness programs





How can discover refinancing loans improve

Discover can improve its private student loans by doing the following : 

1. By conducting an easier credit check and giving personalized rates.
2. Repayment schedules can be increased.
3. Cosigner release option can be provided.


Conclusion

The above article talks about a private lender called Discover which provides both private and federal student loans and also the facility of consolidation and refinancing. Discover is a great choice because it helps in getting a student loan without the need of a cosigner and provides a loan repayment period upto 15 years and provide a wide variety of loans such as Bar loans, Household Loans, Student Loans, etc.

Discover provides a wider range of repayment assistance programs compared with other student loan refinance lenders, including the option to temporarily reduce payments.


Review of discover student loan

Discover provides wide repayment options like temporary reduce payments which are not offered by other lenders. 10- 20 years of repayment terms are available.

Advantages 

  1. More flexible repayment options with temporarily reduced payments are available. 

  2. Refinancing is available even without owning a degree. 

  3. There is no late fee. 

Disadvantages

  1. The repayment term for more than 20 years is not available. 

  2. Cosigner release is not provided by the discover loans.

  3. Does not disclose Min credit score to qualify.