Discover Student Loans (Co-Signer)

Discover allows co-signers on private student loan applications. A co-signer is a creditworthy adult, typically a parent or guardian, who applies alongside the student borrower and agrees to be equally responsible for repaying the loan.

Before applying for any private student loan with or without a co-signer, you should complete the FAFSA and exhaust federal student loan options. Federal loans provide income-driven repayment, deferment, forbearance, and potential forgiveness that private loans do not offer.

Adding a co-signer to a Discover student loan application can improve the borrower's chances of approval and may result in a lower interest rate compared to applying alone. This is particularly relevant for undergraduate students who have limited credit history of their own.

The co-signer is legally responsible for the loan alongside the primary borrower. If the student misses payments, the co-signer is expected to cover them, and any negative payment history will affect both parties' credit.

Discover commonly offers a co-signer release feature, which allows the co-signer to be removed from the loan after the borrower makes a qualifying number of consecutive on-time payments and passes a credit review at that time. Co-signer release is not automatic and must be applied for.

Interest rates on co-signed Discover student loans are available in fixed and variable formats. The rate offered will depend on the creditworthiness of both the borrower and the co-signer.

When evaluating a co-signed Discover loan, both parties should carefully review the annual percentage rate, total repayment cost, repayment term options, co-signer release criteria, and any fees before submitting an application. Comparing offers from multiple lenders is always a good step before committing.