Discover offers student loans for just about every type of undergraduate, graduate, and professional student, with some borrowers able to borrow up to the full cost of their attendance.
As with other private loans, it’s recommend to explore your federal loan and grant options (such as Stafford Loans and Pell Grants) before pursuing private loans. In comparison, federal loans offer a number of benefits.
Such benefits include subsidized loans, income-based repayment plans, loan forgiveness options, and loan deferment options. However, there are limits to how much money you can borrow each year via Stafford loans, and you may need to supplement that amount with private loan money.
Discover offers an extensive rewards program and repayment flexibility associated with student loans. Find out more about restrictions and terms for these loans here.
Discover Private Student Loans
Automatic Payment Discount: The Auto Debit Reward will give you a 0.25% interest rate reduction on your loan. To be eligible for this reward, you must be the borrower or cosigner on a Discover student loan, your loan must be current (not in forbearance, delinquency, or default), and you must be enrolled in an automatic repayment plan and make payments from a U.S. bank account.
Rewards for Good Grades: The Rewards for Good Grades program will make you eligible for a one-time 1% cash reward on your loan if you meet the following conditions:
- you are a U.S. citizen or permanent resident
- you are an incoming undergraduate freshman
- your cumulative high school GPA was 3.0 or higher
- your submitted application for a Discover Undergraduate Loan was approved and accepted on or after May 1, 2020
- the first disbursement of your loan has been sent to your school
- you redeem your cash reward after accepting your loan and within six months of its first disbursement.
Additionally, you will receive a 1% cash reward on your disbursed loan balance if you meet the following conditions: you are a graduate or undergraduate student, your GPA for any term covered by the loan is 3.0 or higher, your loan application was received and approved on or after May 1, 2014, there are no pending disbursements on your loan, and you redeem your reward within 6 months of your loan’s term ending.
Fees: Discover private student loans do not come with origination, application, or late payment fees.
Minimum Loan Amount: $1,000
Maximum Loan Amount: Up to the total cost of attendance
Loan Terms Available: 15 and 20 years
Cosigner Required: You may be required to have a creditworthy cosigner on your Discover Underatuate loan if you do not meet Discover’s credit requirements. Cosigner release is not offered.
Discover Repayment Options
- Deferment: Payments will not be due until 6 months after graduation or if you are enrolled less than half-time.
- Full Principal and Interest During Repayment Period: Pay at least the minimum monthly payment due 15 years after deferment ends.
- Fixed monthly repayment: While you are still enrolled, you can make fixed monthly payments of $25 on your loan.
- Interest-only repayment: Make monthly payments on just the interest of your loan while still in school. If you choose this option, you will receive a 0.35% interest rate discount.
Grace Period: Six months for undergraduate loans and nine months for graduate, health professions, law, and MBA loans.
Forbearance: Discover offers repayment assistance in the form of forbearance of up to 12 months to students experiencing financial hardship such as temporary increase in monthly expenses or lack of sufficient income.
Special Features: Get pre-qualified for future student loans with the Multi-Year Option, which will let you plan for loans you’ll need later on while applying for a loan for now.
Credible is a good tool for comparing rates from multiple lenders at once.
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