Discover Student Loans are a reliable option for covering education expenses, offering competitive interest rates, no hidden fees, and flexible repayment terms. Designed to support both undergraduate and graduate students, Discover makes it easier to manage the costs of tuition, books, and other essentials. Borrowers also benefit from unique perks like cash-back rewards for good grades and rate discounts for enrolling in automatic payments.
While Discover is often recognized for its credit cards and personal loans, their student loan program has earned a reputation for simplicity and borrower-friendly features. Whether you’re heading to college for the first time, pursuing an advanced degree, or refinancing existing student loans, Discover has options designed to meet your needs.
Overview of Discover Student Loans
Discover Student Loans provide a range of borrowing options to cover the cost of higher education, including undergraduate, graduate, MBA, health professions, and law school programs. With no fees for application, late payments, or early repayment, Discover stands out from many other private lenders.
Additionally, borrowers can take advantage of flexible repayment plans and exclusive perks, such as a cash-back reward for good grades. Whether you’re pursuing a traditional degree or preparing for the bar exam, Discover’s loan options are designed to meet your educational needs.
Application Requirements for Discover Student Loans
To qualify for a Discover Student Loan, applicants need to meet specific requirements. While these are straightforward, understanding why they matter can help you better prepare your application and increase your chances of approval. Here’s what you need to know:
Key Eligibility Criteria
Applicants must:
- Be at least 16 years old.
- Be enrolled at least half-time in a degree-seeking program.
- Meet Satisfactory Academic Progress (SAP) requirements.
- Pass a credit check.
- Be a U.S. citizen, permanent resident, or international student with an eligible cosigner.
What Does Satisfactory Academic Progress (SAP) Mean?
SAP ensures borrowers are actively pursuing their degree and meeting minimum academic standards. While Discover hasn’t disclosed its specific SAP requirements, most schools require maintaining a minimum GPA (often 2.0 or higher) and completing a certain percentage of attempted coursework. To stay compliant, stay organized, attend classes regularly, and seek help if you’re struggling academically.
Why a Cosigner Can Improve Your Chances
If you’re just starting out and don’t have a strong credit history, adding a cosigner can significantly increase your chances of approval and help you secure a lower interest rate. A cosigner, often a parent or relative with good credit, provides added assurance to the lender that the loan will be repaid.
Choosing a cosigner with excellent credit can:
- Lower your interest rate, reducing the overall cost of your loan.
- Strengthen your application if you have a limited or no credit history.
Borrowers also have the option to release their cosigner after making 24 on-time payments, provided they meet Discover’s credit criteria at that time.
What If You’re Concerned About Credit Approval?
Although Discover doesn’t disclose a minimum credit score or income requirement, having a strong credit profile—or a cosigner with one—is key to getting the best rates. If you’re unsure about your creditworthiness, consider these steps:
- Check your credit score for free through services like Credit Karma or your credit card provider.
- Review your credit report for errors and dispute any inaccuracies.
- Focus on improving your credit by paying bills on time and reducing debt.
By preparing in advance and understanding what Discover looks for, you can position yourself to qualify for a student loan with favorable terms. If you’re worried about meeting these requirements, a cosigner may be the solution to help you move forward.
Types of Discover Student Loans
Discover Student Loans offers eight types of student loans to help you achieve your education goals. Each comes with the choice of either a fixed interest rate or variable interest rate.
Undergraduate Loans
Discover’s undergraduate student loans will cover up to 100% of the school-certified cost of attendance but can also be used to complement other forms of financial aid you receive. The loan term lasts 15 years after in-school deferment.
APRs depend on the type of interest rate you choose.
Graduate Loans
Are you going for your graduate or doctoral degree? Discover charges zero fees, offers great APRs, and has generous repayment plans to help you hit the ground running once you graduate.
Interest rates for a graduate student loan are comparable to the undergraduate loan and can cover up to 100% of your school-certified college costs.
MBA Loans
Business school can be expensive and challenging to finance, regardless of whether you go straight after college or after you’ve joined the workforce. Luckily, Discover will cover up to 100% of the financing.
Both fixed and variable rates are competitive to keep your monthly payments low after you graduate.
Health Professions
Discover offers private student loans for students looking to study in one of the following health professions:
- Allopathy
- Dentistry
- Nursing
- Occupational Therapy
- Optometry
- Osteopathy
- Pharmacy
- Physical Therapy
- Physician Assistant
- Podiatry
- Veterinary Medicine
The loan term lasts 20 years, while rates are some of the most competitive Discover offers.
Law School
Discover covers 100% of your law school expenses without sneaking in any extra fees. Rates are also competitive, particularly if you opt for a variable rate.
Residency
If you are working through your residency program in medical school, Discover can help you cover the costs of your residency, relocation, internship, and board exam review. So don’t worry about how you’ll pay for it all; just worry about what you need to graduate.
Bar Exam
This niche student loan helps you prepare to take your bar exam after law school. Get ready any way you need to while your Discover student loan covers the cost of your prep classes and living expenses. Rates are just slightly higher than the law student loans.
Discover Student Loan Refinancing
If you want to refinance student loans, you can lump all your private and federal student loans into one loan with a single payment each month. By refinancing your student loans, you may be able to lower your interest rate and monthly payment, as well as eliminate the need for a cosigner. Based on your creditworthiness, your repayment terms on consolidation loans can be either 10 or 20 years.
Discover Student Loans Repayment Options
With a Discover student loan, you’ll have three in-school repayment options before you graduate.
- Deferred: With deferred repayment, you’re not required to make any payments until six months after you graduate, or your enrollment drops below half-time.
- In-school interest-only payments: Pay only interest while you’re in school. This keeps your loan principal from growing and gives you a 0.35% rate discount.
- In-school fixed-rate: Pay only $25 a month while you’re in school and during your grace period that extends for 6 months after graduation. This lowers your total student loan cost.
Of course, you’re also allowed to make full interest and principal payments while still in school. Doing this could put you in a great position to pay off your loans early.
Fees
- No late fees: It is highly unusual for private student loan lenders not to charge late fees when a borrower is delinquent. However, Discover does not charge a late fee when you miss a payment.
- No application fees: Discover won’t charge you any fees for running credit checks when you submit your application.
- No loan origination fees: Lastly, Discover won’t charge you any fees for first putting your loan in place. They view interest rates as the cost of doing business.
- No prepayment fees: Want to pay off your student loan early? Discover won’t charge you extra.
Discover Student Loans Application Process
The application takes as little as 15 minutes to complete, and you can do it entirely online. If you have all of your supporting documents before you begin, you’ll be prompted to upload them during the application. If you don’t, you can always go back and upload later without losing any of your progress. Discover will provide you with a unique access code so you can jump in right where you left off.
After all the appropriate information has been received, Discover processes your application. To check on your application’s status, you can always log in. Just provide your access code, last name, date of birth, and the last four digits of your Social Security number.
Special Features of Discover Student Loans
Discover Student Loans include several borrower-friendly perks that make them stand out. These features not only help reduce costs but also provide added flexibility for managing your loan.
Cash-Back Rewards for Good Grades
Discover rewards borrowers who maintain a 3.0 GPA or higher with 1% cash back on the total loan amount for each academic term covered. This is a great incentive to stay on top of your studies. To make the most of this perk, set a reminder to claim your reward within six months of the covered term to ensure you don’t miss out.
Auto Debit Reward
Borrowers can save even more by enrolling in automatic payments, which reduces the interest rate by 0.25%. This feature ensures you never miss a payment while keeping your costs lower. If you’re setting up auto-pay, make sure the linked bank account is well-managed to avoid overdrafts.
No Fees
Discover sets itself apart by eliminating common fees such as application, origination, late payment, and prepayment fees. This means you won’t face extra costs for things like paying off your loan early or missing a payment deadline. To reduce your loan balance faster, consider making additional payments when possible since there’s no penalty for doing so.
100% Coverage of College Costs
Discover Student Loans cover up to 100% of school-certified expenses, including tuition, fees, books, and even living expenses. This flexibility makes them a great choice for students who may not qualify for enough federal aid. However, it’s important to only borrow what you need to avoid unnecessary debt.
U.S.-Based Loan Specialists
Discover provides customer support through U.S.-based loan specialists who are available to assist borrowers. Whether you have questions about repayment options or need help releasing your cosigner, they are just a call away.
Bottom Line
Discover Student Loans offer competitive rates, no fees, and unique perks like cashback rewards for good grades. These features make them an attractive option for students looking to cover their education costs. With flexible repayment plans and the ability to add a cosigner, Discover is particularly helpful for borrowers who may not qualify on their own.
However, if you’re considering refinancing federal loans, it’s important to understand that you’ll lose access to benefits like income-driven repayment plans and loan forgiveness. Carefully evaluate your financial situation before making the switch. Overall, Discover provides a strong private loan option for students seeking affordability and borrower-friendly terms.