A popular choice among borrowers is Discover Student Loans, because it is under Discover Bank, a trusted banking institution that has been around for over 100 years. However, this isn’t the only reason why many many borrowers prefer their service for private student loans.
So go ahead and read our review to learn why most students prefer Discover Student Loans.
How Do Discover Student Loans Work?
Why Choose Discover Student Loans?
PROS:
- Minimum rates for private student loan
- Outstanding incentives for students with good grades when they graduate (GPA should be over 3.0 to receive a cash reward equivalent to 1% of their principal)
- Borrowers are eligible to receive 2% either off of their loan principal or in cash upon graduation
- No fees for loan application, origination nor late fees
- May also lower your interest rate through a credit cosigner
- Competitive interest rate
- School-certified college costs are covered for up to 100% (aggregate loan limits apply to Undergraduate loans and MBA loans)
Discover student loans are the best.. getting a 3.0 GPA and getting 250 dollars back is the best feeling
— Dan The Man (@DannyPTheMan) May 11, 2017
CONS:
- Does not service federal loans
- Servicing is limited to private loans purchased from other lenders
What Are The Rates Of Discover Student Loans?
Discover Bank has a variety of loan programs available for different types of students but all of which promise zero fees and repayment options of $25 monthly in-school deferment.
Read here for a comparison of a student loan repayment plan.
No one will encourage me more to pursue my education further than Discover Student Loans.
— Hailie King (@hailieking) May 2, 2017
1. Undergraduate loans
This type of Discover student loan can cover a maximum of 100% school-certified costs, as long as the school is eligible for your Bachelor’s or Associate’s degree.
The Discover Undergraduate Loan currently has a minimum of 3.99% variable rate (3-month LIBOR+2.74%) and a fixed rate as low as 6.49%.
2. Graduate student loans
Students currently taking up their masters and doctoral programs can save since there are no fees for this loan. However, there is a limit on the total amount of loans.
The Discover Graduate Loan currently has a minimum of 3.99% variable rate (3-month LIBOR+2.74%) and a fixed rate as low as 6.49%.
3. MBA Loans
This covers up to 100% of your tuition fees and other expenses like housing, books, and more.
The Discover MBA Loan currently has a minimum of 3.99% variable rate (3-month LIBOR+2.74%) and a fixed rate as low as 6.49%.
4. Health Professions Loans
Graduate students who are in the health professions can have their program expenses covered up to 100%.
Discover Health Professions Loan currently has a minimum of 3.99% variable rate (3-month LIBOR+2.74%) and a fixed rate as low as 6.49%.
5. Law Loans
While in law school law school, students’ expenses are covered up to 100% with zero fees.
The Discover Law Loan currently has a minimum of 3.99% variable rate (3-month LIBOR+2.74%) and a fixed rate as low as 6.49%.
New post: "Its a Stretch, But Law Students Could Get Subsidized Loans Again" https://t.co/QT0d9vv3WN
— NYPTI (@NYPTI) June 30, 2017
6. Residency Loans
This can cover interview, travel, and living expenses too of health professionals who are preparing for their residency or internship.
The Discover Residency Loan currently has a minimum of 4.99% variable rate (3-month LIBOR+3.74%) and a fixed rate as low as 6.99%.
Auto-debit rewards are also offered for this type of loan.
7. Bar Exam Loans
While preparing for the bar exam, this can cover law students’ test prep and living expenses.
The Discover Residency Loan currently has a minimum of 4.99% variable rate (3-month LIBOR+3.74%) and a fixed rate as low as 6.99%.
This type of loan also offers auto-debit rewards.
At Barmax, we believe a bar exam prep course should be affordable and bar loans should not be the norm. https://t.co/ke8yxnwQXC #barmax pic.twitter.com/qt01mI8Pz8
— BarMax (@BarMax) November 21, 2016
8. Consolidation Loans
An average of $2,052 may be saved a year by customers who have their student loans consolidated with Discover.
The Discover Consolidation Loan currently has a minimum of 4.49% variable rate (3-month LIBOR+3.24%; Rates reflect 10-year term) and a fixed rate as low as 5.24%.
Also, auto-debit rewards are available for this type of loan.
Note:
*The following loans have a limit on the total amount of loans:
- Health Professions loans
- Law loans
- Residency loans
- Bar Exam loans
- Consolidation loans
Hey @discover, I’m already intimately familiar with these Student Loans you speak of. #MillennialProblems pic.twitter.com/NbSafjYq58
— Matthew Baron (@mbaron) June 19, 2017
Watch this video to know how to pay for college from Discover:
There are a number of firms offering private student loan programs, but Discover stands out from the others. This is because they offer more programs with more benefits to student borrowers compared to other firms.
We enumerated the pros and cons in availing of their service so we hope that we were able to help you through this review. Bear in mind that while this may work out for most, sometimes it won’t, because it will depend on the student’s needs. Also, more than anyone, it is you who can decide which service works best for you.
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