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Discover Student Loans Review
ConsumersAdvocate.org Rating: 4 / 5 (Very good)
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Discover Student Loans is the property of Discover Bank, a financial institution with half a century of experience in the industry.
Discover Bank offers savings accounts, credit cards, personal loans, and private student loans insured by the FDIC.
Its student loan products feature federal and private loan consolidation and fixed or variable interest rates.
How is Discover® rated?
Breakdown
4.0/5
Loan Details
4.0/5
Eligibility Criteria
4.0/5
Customer Experience
4.0/5
Additional Benefits
Overall Rating: 4 / 5 (Very good)
Student loans are available through a partnership between Credible and Discover.
When you enter your information you will receive an offer from Discover and up to 7+ other leading student loan providers.
The following loan specifics pertain to loans procured through Discover alone.
Discover Financial Services, one of the largest credit card issuers in the country, offers a broad range of financial products including home equity, personal, and student loans for undergraduate and graduate students.
Its student loan programs, which include private loans for college, graduate, and professional degrees, can cover up to 100% of school-certified college costs after financial aid and give borrowers access to flexible repayment options and favorable terms.
With a quick and easy application process, fair interest rates, zero fees, good rewards, and 24/7 customer service, Discover positions itself among the leading private student loan providers in the nation.
Discover® Loan Specifics
Loan Details - 4 / 5
Discover offers a broad range of student loan products including undergraduate and graduate student loans as well as options geared toward MBA students, health professionals, and law students.
Since 2016, the company has also been extending refinance loans marketed as private consolidation loans. Interest rates on its loans can be either fixed or variable.
Although variable interest rates appear to be slightly more favorable, these are, of course, subject to market fluctuations.
Discover offers loan amounts of as little as $1,000, yet eligible applicants can obtain up to 100% of their school-certified cost of attendance. It also advertises 0 loan fees, which means its borrowers don't have to cover loan application, origination, or late fees.
Another service feature that sets the company apart from the competition is its flexible repayment options, which include deferred payments, low in-school fixed payments, and alternatives for those struggling with financial hardship.
| Loan Types | Undergraduate Graduate |
| Minimum Loan Amount | 1,000 |
| Maximum Loan Amount | Each year, you can borrow up to 100% of your school-certified cost of attendance (including tuition, housing, books and more) minus other financial aid. Aggregate loan limits apply. |
| Loan Term | Loan terms with Discover can vary, yet the company states loan repayment periods can span 10 or 20 years and are based on the borrower's creditworthiness. |
| Interest Rates | Fixed Variable |
| Repayment Options | Deferred |
| Grace Period | |
| Deferment or Forbearance | |
| Cosigner Release |
Fixed APR Range
3.99% APR - 11.59% APR for Undergraduate Student Loans
6.49% APR - 12.99% APR for Graduate Student Loans
Variable APR Range
1.29% APR - 10.59% APR for Undergraduate Student Loans
4.99% APR - 12.49% APR for Graduate Student Loans
Discover® Qualifications
Eligibility Criteria - 4 / 5
To qualify for a private student loan through Discover, applicants must be U.S. citizens, legal residents, or international students with an eligible cosigner.
They must also be enrolled at least half-time in an eligible school, seeking a degree and making satisfactory academic progress. All applicants must undergo a credit check. If the applicant doesn't have sufficient credit history, he or she may apply with a creditworthy cosigner. The company is transparent with regard to their credit requirements, stating that a borrower with no credit history or a low credit score could increase their likelihood of getting approved for a loan and obtaining a lower interest rate by applying with a cosigner who is either a U.S. citizen or permanent legal resident that can pass a credit check.
| Cosigner Required | |
| Course Load | Half-time |
| Citizenship Requirement | U.S. Citizen Permanent Legal Resident Non-U.S. Citizen with a Cosigner |
Discover® Customer Experience
Customer Experience - 4 / 5
Discover's website offers several resources for student borrowers, including tips on how to apply for financial aid, how to complete the FAFSA application as well as different types of scholarship opportunities.
The company also has a student loan repayment calculator and useful FAQs, and offers 24/7 support as well as discounts for students that have at least a 3.0 GPA or who sign up for automatic payments.
Discover advertises a simplified student loan and loan consolidation process.
The prospective borrower can apply online in as little as 15 minutes by providing their basic information including their Social Security Number as well as their school and financial information, and then selecting a type of interest rate and repayment option.
| Student Loan Calculator | |
| Online Quotes | |
| Additional Services | 24/7 Customer Support |
Discounts
Get at least a 3.0 GPA (or equivalent) and receive a one-time cash reward of 1% of the loan amount of each new Discover student loan.
Get a 0.25% interest rate reduction when you are enrolled in automatic payments during repayment.
Discover® Company Reputation
Additional Benefits - 4 / 5
Discover is a Better Business Bureau-accredited company with an A+ rating based on few negative customer reviews for a company of its size.
The business seems committed to providing timely and satisfactory resolutions to all complaints filed against them, which mostly deal with billing and collection issues.
The company has also received a high rating on Truspilot.com, where it holds an 8.4 (Great) score based on mostly positive customer feedback.
| Lender Type | Bank |
| Year Founded | 1985 |
| BBB Rating | A+ |
| Number of BBB Positive Reviews | 0 |
| Number of BBB Negative Reviews | 43 |
| Trust Pilot Rating | 8.4 out of 5 |
| Date Collected | 2018-03-22 |
Company's Disclosure
1) *Lowest APRs are available to the most creditworthy applicants, and include an interest only repayment discount (DiscoverStudentLoans.com/interest-only) and Auto Debit Reward (Discover.com/student-loans/rewards/auto-debit-rewardpolicy).
2) *Lowest APRs are available to the most creditworthy applicants, and include an interest-only repayment discount and a 0.25% interest rate reduction while enrolled in automatic payments.¹
¹The fixed interest rate is set at the time of application and does not change during the life of the loan unless you are no longer eligible for one or more discounts. The variable interest rate is calculated based on the 3-Month CME Term SOFR index plus the applicable margin percentage less any applicable discounts. The 3-Month CME Term SOFR index value for variable interest rate loans is 0.125% as of November 14, 2021. 3-Month CME Term SOFR is administered by CME Group and is published by CME Group on its website (cmegroup.com/termsofr). Discover Student Loans may adjust the variable interest rate quarterly on each January 1, April 1, July 1 and October 1 (each an “interest rate change date”), based on the 3- Month CME Term SOFR rate available for the day that is 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125), or 0%, whichever is greater. This may cause the monthly payments to increase, the number of payments to increase or both. If the 3-Month CME Term SOFR rate is less than zero percent, then the index will be deemed to be zero percent (as stated in the promissory note) for purposes of calculating your interest rate. Your variable interest rate (index + margin – applicable discounts) will not exceed 18%. Our lowest APRs are only available to applicants with the best credit. The APR will be determined after an application is submitted. It will be based on credit history, the selected repayment option and other factors, including a cosigner’s credit history (if applicable). If a student does not have an established credit history, the student may find it difficult to qualify for a private student loan on their own or receive the lowest advertised rate. Learn more about Discover Student Loans interest rates.
2) *Lowest APRs are available to the most creditworthy applicants, and include an interest-only repayment discount and a 0.25% interest rate reduction while enrolled in automatic payments.¹
¹The fixed interest rate is set at the time of application and does not change during the life of the loan unless you are no longer eligible for one or more discounts. The variable interest rate is calculated based on the 3-Month CME Term SOFR index plus the applicable margin percentage less any applicable discounts. The 3-Month CME Term SOFR index value for variable interest rate loans is 0.125% as of November 14, 2021. 3-Month CME Term SOFR is administered by CME Group and is published by CME Group on its website (cmegroup.com/termsofr). Discover Student Loans may adjust the variable interest rate quarterly on each January 1, April 1, July 1 and October 1 (each an “interest rate change date”), based on the 3- Month CME Term SOFR rate available for the day that is 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125), or 0%, whichever is greater. This may cause the monthly payments to increase, the number of payments to increase or both. If the 3-Month CME Term SOFR rate is less than zero percent, then the index will be deemed to be zero percent (as stated in the promissory note) for purposes of calculating your interest rate. Your variable interest rate (index + margin – applicable discounts) will not exceed 18%. Our lowest APRs are only available to applicants with the best credit. The APR will be determined after an application is submitted. It will be based on credit history, the selected repayment option and other factors, including a cosigner’s credit history (if applicable). If a student does not have an established credit history, the student may find it difficult to qualify for a private student loan on their own or receive the lowest advertised rate. Learn more about Discover Student Loans interest rates.
Company Profile
| Full Name | Discover®️ Student Loans |
| Company Website | |
| Headquarters | 502 East Market Street, Greenwood, DE, 19950 |
Top Rated
Our Partner
4 Reviews
Only Able to Accept Applications Submitted before Jan 2024
- Formerly a leading player in private student loans market
- Customer support from US-based loan specialists is ongoing
- It's unclear what will happen after January 2024 for existing students
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