Advertiser Disclosure
We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free – so that you can make financial decisions with confidence. The offers that appear on this site are from companies from which TheSimpleDollar.com receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. The Simple Dollar does not include all card/financial services companies or all card/financial services offers available in the marketplace. The Simple Dollar has partnerships with issuers including, but not limited to, Capital One, Chase & Discover. View our full advertiser disclosure to learn more.
Discover Student Loans Review
Although Discover is most known for its reward credit cards, it has made a name for itself in student loans.
- Competitive rates
- Autopay rate discount
- No cosigner release
Discover Undergraduate Loan’s process is fast, easy and convenient with competitive rates and high limits. Further, Discover finances up to 100% of school-certified costs (aggregate loan limits apply), so borrowers don’t have to seek loans from multiple lenders. The only hang-up is getting approved may be difficult if your credit isn’t established or in good shape. However, applying with a cosigner is an option to boost your chances of getting approved for a Discover student loan. If you’re looking for an easy and dependable way to cover the cost of tuition and school-related expenses, Discover student loans are worth a look.
We follow a rigorous editorial policy designed to keep our writers and editors independent. Articles may reference products from our partners, so here’s more information on
How we make money
Discover Student Loans at a glance
| Lender | Min. Loan | APR | Key Benefit |
|---|---|---|---|
| Discover | $1,000 | Variable rates between 1.24%–11.99%1 APR, fixed rates between 4.24%–12.99%1 APR. | No origination fees |
What we like about it
A student loan from Discover offers a whole host of benefits for students through undergraduate and graduate studies. First, depending on your creditworthiness, Discover may pay up to 100% of school-certified costs (aggregate loan limits apply) which is great for students who want to avoid the hassle of dealing with multiple lenders. Discover borrowers also benefit from not having to pay origination, application or late payment fees, which is nearly unheard of among competitors. A unique program that Discover offers is awards for good grades throughout college. If you earn at least a 3.0 GPA, then Discover will send a cash reward2 equal to 1% of the loan covering that academic period.
Additionally, the application process is fast, easy and done completely online. Should you require the assistance of a representative, Discover is well-known for its exceptional customer service from U.S.-based representatives. There are great options like extensions, forbearance and reduced payments for borrowers who fall on financially tough times and have difficulty making payments.
Lastly, Discover offers students different repayment options so borrowers can choose a plan that best fits their needs throughout college and after graduation.
2Get a cash reward on each new Discover undergraduate and graduate student loan when you earn at least a 3.0 GPA (or equivalent) in any academic period covered by the loan. Limitations Apply. Visit DiscoverStudentLoans.com/Reward for terms and conditions.Things to consider
Qualifying for a Discover Student Loans may be difficult for borrowers who have low or limited credit, low or no income or no cosigner available. However, Discover will only make lending decisions based on a hard credit pull.
Another thing to consider is that Discover offers limited loan terms. Also, if you use a cosigner for your loan, there isn’t an option to release your cosigner once your credit is built up — you have to keep the cosigner for the duration of your loan or until you refinance with another lender if you choose to do so.
What you need to know
As the cost of higher education continues to increase, more and more students are looking to private student loans, like Discover to help cover the cost of schooling. Discover offers many competitive options, including the option to choose between fixed and variable APR loans. Additionally, both cosigned and non-cosigned loans are available, allowing for more options if you don’t have great credit on your own yet.
Applying is easy and done completely online with basic information from you and your cosigner – if you have one. Once you’re on Discover’s website, you can get the process started by selecting your school from the pre-populated list. After that, all you need to do is enter your personal information along with your cosigner’s information and hit submit. In some cases, Discover may require additional documentation. In this case, you can easily upload them online through the website.
Fees and penalties
When it comes to fees and penalties, Discover rates highly as one of the most generous student loan lenders out there. Borrowers who choose Discover Student Loans will not pay for origination fees, application fees or late fees. Avoiding these fees can save borrowers thousands of dollars on their loan, making it a very savvy choice.
Collateral and criteria
You’ll have the opportunity to see if your school is eligible during the application process. Student loans through Discover are unsecured loans so do not require collateral.
Too long, didn’t read?
A student loan from Discover is a great choice for both undergraduate and graduate students who didn’t receive enough money from federal student aid. That said, it may not be a viable option for borrowers who have lower credit scores and don’t have an available cosigner. It’s also important to keep in mind that there is no option to pre-qualify, so you may want to check other avenues first. Further, Discover’s no-fee policies and competitive interest rates make it a great option for students looking to manage and stay ahead of loan debt.
This content is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of TheSimpleDollar.com, and may not have been reviewed, approved or otherwise endorsed by the financial institution.
How we make money
Keep Reading
Methodology
The SimpleScore is a proprietary scoring metric we use to objectively compare products and services at The Simple Dollar.
For every review, our editorial team:
- Identifies five measurable aspects to compare across each brand
- Determines the rating criteria for each aspect score
- Averages the five aspect scores to produce a single SimpleScore™
Here’s a breakdown of the five aspect scores and their rating criteria for our review of the best student loans of 2020.
Max Fixed Rate
Lenders who offered a lower maximum fixed rate were awarded higher scores.
Perks
We awarded higher scores for lenders that list more perks including services, discounts and special offers for their borrowers.
Transparency
Lenders that laid it all bare by publishing important data about products — APR, offered loan amounts, applicable fees and customer support contact links — scored higher for transparency.
Loan Amount
Lenders that offered higher loan amounts compared to others received higher scores.
Fees
We awarded higher scores to lenders that have fewer loan fees for borrowers.
