Discover Student Loans

Discover offers private student loans for undergraduate, graduate, and professional school borrowers. It is a well-known financial brand that also provides credit cards and banking products, and its student loan operation follows a similar direct-to-consumer model.

Before considering Discover or any private student loan, you should first complete the FAFSA and review federal student loan options. Federal loans from the US Department of Education include income-driven repayment plans, deferment, forbearance, and potential forgiveness programs that private loans do not offer. Private loans are best treated as a supplement after federal aid, scholarships, and grants have been applied.

Discover private student loans are available with fixed and variable interest rates. Fixed rates stay the same over the life of the loan. Variable rates may start lower but can change based on market indexes. Rates depend on your creditworthiness and the creditworthiness of any co-signer.

Most undergraduate students apply with a co-signer, typically a parent or other creditworthy adult. Adding a co-signer can improve your approval chances and may result in a lower rate. The co-signer is equally responsible for repaying the loan.

Discover commonly offers a reward for good grades at the time of borrowing, typically a one-time cash reward for borrowers who maintain a certain GPA. This is worth noting but should not be the primary factor in choosing a lender.

Repayment options generally include deferred repayment during school, interest-only payments, or full principal and interest payments from the start. Making at least interest payments during school reduces the total amount owed after graduation.

When comparing Discover against other private lenders, look carefully at the annual percentage rate, total cost of the loan, repayment flexibility, and any origination or prepayment fees.