Discover Student Loans: 2020 Review

Discover student loans are a legitimate option for funding your education privately, such as when financial aid and Federal assistance isn’t enough. Discover may be known as a credit card provider, but it’s also a valid option for providing competitive private student loans to undergraduates and grad school students. With no application fees or origination […]

BY The Team

Discover Student Loans: 2020 Review

Discover student loans are a legitimate option for funding your education privately, such as when financial aid and Federal assistance isn’t enough. Discover may be known as a credit card provider, but it’s also a valid option for providing competitive private student loans to undergraduates and grad school students. With no application fees or origination fees, applying for a Discover student loan is quick and easy.

Discover Student Loans: The basics

Federal student loans are open to anyone attending a four-year college, community college, or a technical school. While there are basic eligibility requirements, anyone who wants school aid must apply every year before December 1 to the FAFSA, the Free Application for Federal Student Aid for priority financial aid. Colleges use FAFSA info to figure out a student’s financial aid package. Read the Discover student loans review below to see how this loan might fit into your financial plan.

Discover Student Loans: GoodCall’s full review

It is worth noting that Discover Student Loans require a hard credit check. The only way to get low rates is to have a good credit history or to have a cosigner who does. But the cash reward for excellent academic performance is another good reason to check it out. Loan requirements are no more difficult than applying to the FAFSA or any other form of financial aid. To snag a loan at up to 100% of the school-certified cost of attendance, borrowers must be enrolled in at least a part-time degree-seeking program, be a U.S. citizen, permanent resident, or an international student and be at least 16 years old. Discover also wants to see good credit from the borrower or cosigner and strong academic performance in your grades and GPA.There are variable and fixed-rate loan options and they typically range from 2.80% to 11.37%. Interest rates for Discover student loans are comparable to other loan types; however, the better the credit of the borrower, the better the loan they will receive. Automatic payments do net you a .25% interest rate reduction. Discover’s undergraduate loans have a 6-month grace period and a repayment period of up to 15 years. As an in-school borrower, you can pay a minimum of $25 a month or defer your payments until after you leave school. 

Discover Student Loans pros and cons

The Discover student loan interest rate compares to federal student aid standards so applying for and accepting this loan won’t put you in an impossible bind. Additionally, you can consolidate federal and private school loans to further lower your interest rate and monthly payments through Discover. Best of all, reconsolidation can simplify your life with one loan and one payment each month.

Discover Student Loans advantages:

Discover Student Loans disadvantages:

  • You can’t view your rate or if you qualify without a hard credit check
  • Only a 15-year repayment term is available
  • May require a cosigner for the best Discover student loan interest rate

Discover Student Loans details

  • Loan requirements:
    Students must be US citizens, permanent residents or international students to apply for an undergraduate loan. Borrowers should have good academic standing, pass a credit check, be at least 16 years old and be, at minimum, a part-time, degree-seeking student at an accredited college.
  • Interest rates:
    Each loan product offers up a different interest rate, but in general, expect rates to be between 2.80% to 11.37% APR on variable rates, and 4.74% to 12.49% APR on fixed-rate loans. 
  • Loan terms:
    Undergraduate loan borrowers have 15 years to repay the loan after falling below the minimum part-time status or graduating from college.
  • Associated fees:
    This student loan doesn’t have application fees or origination fees. Nor are there fees for prepaying the loan.
  • Repayment options:
    Discover student loans provides three repayment options. Choose from in-school interest-only payments to lower the bulk of your loan cost (and offer a 0.35% interest rate discount) or a $25 in-school fixed payments. Receive a six-month deferred payment that kicks in six months after your school status falls below the minimum part-time requirement or you graduate. Payments can be made at any time without repayment penalties.
  • Grace period:
    Like most federal loan programs, Discover student loans offer Undergraduate borrowers a six-month grace period when school status changes or upon graduation. There are numerous payment deferment options, such as returning to school or being active military personnel. 

Best Discover Student loans

While there’s no shortage of ways to pay for college, not every option is the right fit for you. If you’ve done any research, you’ve likely heard of subsidized loans vs. unsubsidized loans. Both of these loan types are made available through the federal government for college students. Subsidized loans have an advantage: they are need-based, don’t require a minimum credit score and don’t accrue interest during the time a student is in school or during the deferment period (usually six months). But, students can only borrow so much through this loan and must fill out the FAFSA for consideration. That’s where unsubsidized loans come into play. To fill in those financial aid gaps, students often receive aid in the form of these interest-accruing loans. The government isn’t eating the interest on unsubsidized loans, so even though you aren’t required to pay on the loan while you’re in school, that interest keeps growing, inflating the total of your final bill. If your subsidized loan doesn’t cover the cost of school, an unsubsidized loan can pave your way forward.

How to apply for Discover Student Loans

Browse the Discover student loans review to make sure you have the required information before you sit down to apply for this loan. Whether you are interested in a Discover student loan refinancing package or figuring out how to pay for your college tuition, you will apply online at the same link, choosing the type of loan you want during the application process.Step 1: Submit the FAFSA, the Free Application for Federal Student Aid.Step 2: Figure the amount you’ll have to borrow based on your financial aid package, your personal savings and up to 100% of the cost of attendance.Step 3: Decide if you need a cosigner based on your credit history.Step 4: Decide among the different Discover student loan types based on your school status, like a Discover student loan refinance package or a first-time school loan.Step 5: Gather your documentation, like social security number, school information and financial situation as required by Discover student loans.Step 6: Apply online on the Discover student loans website or by calling 1-800-STUDENT. Step 7: Email, mail or fax any required supporting documents.Step 8: Log into the Discover student loan application page to check the status of your application at any time by using your special access code.

The bottom line

Discover student loans offer easy no-fee application and repayment assistance programs, especially when compared to competitors. The lack of a soft credit check for loan rate estimates is a drawback, but a good credit history will help ensure the best Discover student loan interest rate and a smaller payment in the future. Of course,  the repayment plan is a solid 15-year standard repayment, without the flexibility federal lenders provide, but the application process is simple and fuss-free. The undergraduate application will take 15 minutes or less to complete.If you need money to pay for school, Discover student loans are worth a look. Consider your financial aid package, compare interest rates, and determine how Discover student loans fits into your future.