What You Must Know About Discover Student Loans

Explore Discover Student Loans for flexible and fee-free options covering undergrad, grad, law, MBA, health professions, and more. Benefit from rate discounts, no fees, and rewards for good grades.

Discover offers a variety of private student loans, catering to undergraduates, graduates, MBA students, law school students, those in health professions, and individuals to prepare for residency or bar exams. Parents can also apply independently, and graduates have the option to refinance existing loans through Discover. The company is dedicated to helping people build a better financial future and make higher education more affordable and manageable.

Discover student loans are available for undergraduate, graduate, and professional degree students, as well as parents. They also offer options for refinancing student loans. Approval is based on creditworthiness, so students must meet the required credit score.

Key Features and Details of Discover Student Loans

Rate Discounts:

0.25% discount for automatic payments.
0.35% discount for making interest-only payments while still in school.

Loan Amounts:

Borrow between $1,000 and 100% of your school-certified college costs (excluding loans for bar exams and medical residencies).

In-School Repayment Options:

Interest-only payments.
Fixed $25 monthly payments.
Deferred payments (no payments while in school).

Repayment Assistance:

Deferment available if you’re enrolled at least half-time, on active military duty, in public service, or in a medical residency.
Additional options may be available by contacting Discover’s Repayment Assistance Department Here

Cosigner Release:

Not offered.

Fees:

No fees.

Unique Features:

Cash rewards for achieving good grades.

Types of Discover Student Loan in View

Loan Type	Variable APR	Fixed APR
Undergraduate loan	6.49%–17.37%	5.24%–15.99%
Graduate loan	6.87%–17.37%	5.99%–15.99%
Law school loan	6.87%–16.49%	5.74%–15.24%
MBA school loan	6.87%–16.27%	5.99%–15.49%
Health professions loan	6.49%–12.37%	5.49%–10.99%
Residency loan	7.74%-10.74%	6.74%–9.24%
Bar exam loan	8.24%–16.49%	7.24%–14.99%
Parent loan	11.87%–17.12%	10.74%–15.74%
Refinance loan	7.49%–11.49%	5.99%–9.99%

Note: APR means Annual Percentage Rate

What are the pros and cons of Discover student loans?

Pros

Some major benefits of Discover student loans includes:

Its elimination of additional costs ( loan application fees, origination fees, late fees and prepayment penalty)
It provides refinancing and consolidation opportunities to qualified borrowers.
Offer both variable and fixed interest rates options
Forbearance options and flexible repayment options

Cons

One of the biggest drawbacks with Discover student loans is that:

It does not offer prequalification.
You also need to pass a hard credit check.
It has limited loan terms.
Unlike many other student loan lenders, Discover does not offer co-signer release program.

Discover Student Loans Type Explained

Undergraduate Student Loans

Discover provides loans for undergraduate students with benefits such as zero fees, multi-year approval, rewards for achieving good grades, and discounts for setting up automatic payments or making interest-only payments while in school. Eligible students can borrow up to the full cost of their education, subject to aggregate limits.

Undergraduate Loan Terms:

Variable APR: 6.49%–17.37%
Fixed APR: 5.24%–15.99%
Loan Amounts: $1,000 up to the total cost of attendance
Loan Terms: 15 years

Graduate Student Loans

For master’s or doctoral degree students, you can apply for a graduate student loan that covers up to the full cost of your education, subject to certain aggregate limits. Like undergraduate loans, these loans come with no fees, and you can earn rewards for good grades along with discounts for setting up automatic payments or making interest-only payments.

Graduate Loan Terms:

Variable APR: 6.87%–17.37%
Fixed APR: 5.99%–15.99%
Loan Amounts: $1,000 up to the total cost of attendance
Loan Terms: 20 years

Law School Student Loans

Law students can secure loans to cover up to the entire cost of their education, also within certain aggregate limits. These loans offer the same rewards and fee, free benefits as other Discover student loans.

Law School Loan Terms:

Variable APR: 6.87%–16.49%
Fixed APR: 5.74%–15.24%
Loan Amounts: $1,000 up to the total cost of attendance
Loan Terms: 20 years

MBA Student Loans

For students looking to earn an MBA, you can apply for an MBA student loan to help fund your education.

MBA Loan Terms:

Variable APR: 6.87%–16.27%
Fixed APR: 5.99%–15.49%
Loan Amounts: $1,000 up to the total cost of attendance
Loan Terms: 20 years

Health Professions Student Loans

For those pursuing careers in fields such as allopathy, dentistry, nursing, pharmacy, and veterinary medicine, Discover offers health professions student loans to cover the cost of your education.

Health Professions Loan Terms:

Variable APR: 6.49%–12.37%
Fixed APR: 5.49%–10.99%
Loan Amounts: $1,000 up to the total cost of attendance
Loan Terms: 20 years

Residency Loans

If you’re in a qualifying health professions program, you can use a residency loan to cover expenses like your residency, internship, relocation, and board exam preparation. Loan limits depend on your specific field of study, and discounts are available for automatic and interest-only payments during your residency.

Residency Loan Terms:

Variable APR: 7.74%–10.74%
Fixed APR: 6.74%–9.24%
Loan Amounts:
Allopathy, Dentistry, Optometry, Osteopathy, Pharmacy, Podiatry, Veterinary Medicine: $1,000–$18,000
Nursing, Occupational Therapy, Physical Therapy, Physician Assistant: $1,000–$5,000
Loan Terms: 20 years

Bar Exam Loans

If you’re a recent law school graduate or in your final year of law school, you can use a bar exam loan to cover the cost of bar study courses and living expenses.

Bar Exam Loan Terms:

Variable APR: 8.24%–16.49%
Fixed APR: 7.24%–14.99%
Loan Amounts: $1,000 to $16,000
Loan Terms: 20 years

Parent Loans

Parents looking to support their child’s education can apply for a parent loan, it comes with no fees and requires immediate repayment. Parents can also benefit from a discount for setting up automatic payments.

Parent Loan Terms:

Variable APR: 11.87%–17.12%
Fixed APR: 10.74%–15.74%
Loan Amounts: $1,000 up to the total cost of attendance
Loan Terms: 15 years

Refinance Loans

Graduates and parents can refinance their student loans through Discover’s no-fee consolidation loan, which includes a discount for automatic payments.

Refinance Loan Terms:

Variable APR: 7.49%–11.49%
Fixed APR: 5.99%–9.99%
Loan Amounts: $5,000 to $150,000 or more for certain fields of study
Loan Terms: 10 or 20 years

What Are the Eligibility Requirements of Discover Student Loans?

To qualify for Discover’s student loans, you need to be a U.S. citizen, a permanent resident, or an international student with a cosigner who is either a U.S. citizen or permanent resident.

Discover doesn’t disclose the percentage of borrowers with cosigners, it often recommends having one if you have a limited credit history.

Eligibility Criteria:

Citizenship:

Must be a U.S. citizen, permanent resident, or international student (international students require a cosigner who is a U.S. citizen or permanent resident).

State of Residence:

Available to residents of all U.S. states and territories, including the District of Columbia.

Minimum Age:

16 years old.

Enrolled School:

Must be enrolled in an “eligible school.” (Check eligibility by entering your school’s name during the application process).

Enrollment Status:

Must be enrolled at least half-time in a bachelor’s or associate degree program at an eligible school.

Minimum Credit Score:

Not specified, but applicants must pass a credit check.

Minimum Income:

Not specified.

Other Requirements:

Must be making satisfactory academic progress as defined by your school.

Conclusion:

Discover Student Loans offer a range of options for undergraduates, graduates, law and MBA students, as well as those pursuing health professions, residency, or preparing for bar exams. With features like no fees, discounts for automatic payments and good grades, and flexible repayment options, Discover aims to make education more affordable. However, the absence of cosigner release and prequalification might be drawbacks. Whether you’re a student or a parent, Discover provides various loan types to support your educational and financial goals.