Discover Student Loans Review: No Fees + Large Limits

In the student that is private marketplace, Discover Bank provides some of the most tried-and-true options, including loans for undergraduate, graduate, and multiple pre-professional programs.

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Discover also offers competitive interest rates and some of the most flexible repayment options of any lender that is private. And there’s one bonus which makes Discover be noticed: borrowers get cash rewards once and for all grades.

Pros & Cons of Discover Student Loans

Pros

  • No loan fees — Discover doesn’t charge the fees that may ratchet the cost up of other servicers’ loans, like origination, application, and late fees. They don’t even charge penalties that are prepayment
  • Multiple repayment options — figuratively speaking from Discover have deferment and forbearance extensions, and eased repayment choices for borrowers experiencing hardship that is economic. This kind of flexibility is rare for private lenders.
  • Large loan limits — With many loans Discover offers, including undergraduate and graduate loans, you can borrow up to the cost that is full of education. However, you will find aggregate limits for several Discover loans; Discover makes certain you don’t borrow more you may not be able to borrow above a certain maximum.Cons
  • Cosigners than you need, and can’t be released — Unlike several lenders that are private Discover keeps cosigners regarding the hook for repayment responsibility before the loan is fully repaid. This is important to keep in mind.Narrow if your loan is supported by a cosigner loan terms — While some lenders offer a range of short and repayment that is long options, Discover repayment terms are simply for 15 or two decades. What this means is you may choose to accumulate more interest.

No prequalification process — With prequalification, you should check any time you be eligible for that loan without dealing with a credit check that is hard. Discover requires the credit that is hard, which “dings” your credit temporarily. Soft Pull vs. Hard Pull – How Each Affects Your Credit

 

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Types of figuratively speaking Discover Offers

  • Undergraduate Programs(you out with costs*)If you’re enrolled at least half-time in an associate’s or bachelor’s degree program, Discover can help. One unique feature of Discover’s undergraduate loans is the multi-year option, where you can pre-qualify to borrow loans for future semesters at the same school and in the degree program that is same. This could save you a ton of time.
  • Freshmen are also eligible for extra good-grade perks since most Bachelor’s degree programs take at least four years. In addition to the 1% cash reward Discover offers all its borrowers for 3.0 GPAs or higher, undergraduate freshmen can get an additional 1% of their loan amount as a cash reward.APRs:
  • Fixed: 5.49%–13.99%; Variable: 2.99%–12.59%Loan Amounts: Minimum $1,000, maximum up to 100% of cost of attendance (including tuition, room, board, and books) minus other financial aid
  • Loan terms: 15 years

Graduate Programs (Master’s and PhD Degrees)

These loans are for students enrolled at half-time that is least in eligible master’s or PhD programs in a selection of subjects. Eligibility may depend a credit check on, but qualified borrowers can take out up to 100% of their cost of attendance, which can be substantial for graduate school.

  • APRs: Fixed: 5.49%–14.99%; Variable: 3.99%–13.99%
  • Loan amounts: Minimum $1,000, maximum up to 100% of cost of attendance (including tuition, room, board, and books) minus other financial aid
  • Loan terms: 20 years

MBA Programs

Like other graduate programs, business school can be pricey; fortunately, it has its own Discover loan options. Eligible borrowers should be enrolled at half-time that is least in a small business school program ultimately causing an MBA.

  • APRs: Fixed: 5.49%–11.99%; Variable: 4.24%–10.99%
  • Loan amounts: Minimum $1,000, maximum as much as 100% of price of attendance (including tuition, room, board, and books) minus other financial aid
  • Loan terms: 20 years

Medical School

Discover supports medical students throughout these specialties: allopathy, dentistry, nursing, occupational therapy, optometry, osteopathy, pharmacy, physical therapy, physician assistant, podiatry, and medicine that is veterinary. You may qualify.APRs if you’re in an eligible program for a specialty on this list:

  • Fixed: 5.49%–9.99%; Variable: 3.99%–8.59%Loan amounts:
  • Minimum $1,000, maximum as much as 100% of price of attendance (including tuition, room, board, and books) minus other financial aidLoan terms:
  • 20 years

    Medical Residency and Relocation

    • These loans help cover the expense of post-grad medical residencies and internships, including moving costs. The amounts that are eligible based on the specific programs, but a variety of graduate health profession programs are included, as are veterinary and dental residencies.APRs:
    • Fixed: 5.99%–8.99%; Variable: 4.49%–7.24%Loan amounts:
    • $1,000 to $18,000 for allopathy, dentistry, optometry, osteopathy, pharmacy, podiatry, and medicine that is veterinary. $1,000 to $5,000 for nursing, occupational therapy, physical therapy and physician assistant programs.Loan Terms: 20 years
    • Law SchoolStudents enrolled at half-time that is least in a degree-granting law school graduate program are eligible to borrow up to 100% of their school costs for each year of school.
    • APRs: Fixed: 5.49%–13.99%; Variable: 3.99%–12.59%

    Loan amounts:

    Minimum $1,000, maximum up to 100% of cost of attendance (including tuition, room, board, and books) minus other financial aid

    • Loan terms: 20 years
    • Bar Exam Expenses for Law StudentsRecent law school grads, or students in their final year of law school, are eligible for this loan that gives them resources and time to study for the all-important bar exam.
    • APRs: Fixed: 6.49%–13.99%; Variable: 4.99%–12.99%

    Loan amounts:

    $1,000 to $16,000

    Loan terms: 20 yearsStudent Loan Consolidation and Refinancing Guide

    Parent Student Loans

    • For students whose parents are helping out with their education, Discover has parent-specific loans that are private competitive terms. Parent loans can cover either undergraduate or student that is graduate.APRs:
    • Fixed: 9.49%–14.49%; Variable: 7.99%–13.49%Loan amounts:
    • Minimum $1,000, maximum up to 100% of cost of attendance (including tuition, room, board, and books) minus other financial aidLoan terms:

    15 years

    Consolidation Loansapply for a Discover loanDiscover also offers private consolidation loans. Technically, these are refinanced loans rather than consolidated loans, but you still get a potential lower payment that is monthly a simplified payback process.

    • Read more:
    •  
    • Borrowers who choose this method should really be Discover that is aware has payback terms for refinanced loans — 10-year or 20-year terms—compared to most lenders. You might make smaller monthly payments, but at the expense of racking up more interest.
    • APRs:
    • Fixed: 4.99%–9.49%; Variable: 3.99%–7.99%

    Loan amounts:

    Minimum $5,000; maximum up to the aggregate amount of your loan debtLoan terms:What Does Being a Cosigner Really Mean?

    10 or 20 years

    Eligibility

    To

    , you must:

    Be enrolled at least half-time and on track towards a degree

    Be making “satisfactory academic progress” according to your school

    Pass a credit check — as with most private loans, your credit rating helps determine the interest rate you can get

    Be a U.S. citizen, permanent resident, or international student with a citizen/resident cosigner

    Be 16 years of age or older

    In many cases, especially with undergraduate loans, you’ll need a cosigner. Make sure your cosigner is until it’s paid.

    Read in it for the long haul, since Discover requires cosigners to keep their name on the loan more:

     

    Interest Rates

    Discover provides a selection of interest levels competitive aided by the industry average for private student education loans, though in the high end of this spectrum.

    Borrowers can pick between fixed and rates that are variable. Fixed rates stay the same over the full longevity of the mortgage. Variable rates may rise or fall within a predetermined range according to the market.

    You’re qualified to receive lower rates of interest in the event that you or your cosigner have credit that is goodthink high 600s or above). Rates also vary based on the amount of the loan and the length of the term.

    Perks and Benefits of Discover Student Loans

    Rewards for Good Grades

    Discover wants you to do well! As long as your GPA is 3.0 or higher for the you’ll get a 1% cash reward for each loan year. The reward applies annually by taking out that loan every single year. And you may spend the cash that is extra way you want.

    No Fees

    You don’t pay application or late fees — every payment you make goes toward the loan.

    • Auto Debit RewardsFor enrolling in automatic payment during your repayment period you’ll get a 0.25% reduction on your interest rate.Repayment Terms
    • Private loans are known for having less repayment that is flexible than federal loans, but Discover is the one exception. The financial institution makes multiple types of repayment assistance accessible to borrowers, including payment extensions and reduced payments as required.Interest-Only or Fixed PlansFor in-school repayment you’ll be able to choose an interest-only plan or a set plan. Throughout the plan that is interest-only make payments on the interest but not the principal while in school. You’re rewarded with a 0.35% interest rate discount.
    • The fixed plan requires monthly payments of $25, saving you money on interest later. Those who want to pay early can do so — there’s no prepayment penalty.Deferment
    • Deferment lets you delay payments while in school and during your grace that is six-month period. This choice accumulates more interest compared to the repayment that is in-school.You can defer for longer periods of time during a residency that is medical active military duty or qualifying public service.

    Forbearance

    Forbearance offers you an opportunity to postpone loan payments for as much as one year during times during the monetaray hardship. Much like deferment, interest will continue to accrue.

    For borrowers struggling in order to make payments, Discover has some more choices beyond forbearance:

    A temporary rate of interest reduction

    Earnest offers you a lesser rate of interest and payment (a $50 monthly minimum) for as much as 6 months.A temporary payment reduction

    enables you to pay the interest down only (a $50 monthly minimum) for up to six months. To get this reduction you should be less than 60 days behind on payments.

    Early repayment assistance

    lets you postpone payments for three months (within the first three months of your repayment period).

    • Payment extension
    • is for people who are at least 60 days behind on their loan payments — if you make three minimum monthly payments within 90 days, your loan will be brought back to “current” status.
    • Alternatives to Discover Student Loans
    • Discover isn’t the only private lender option for students out there. Here’s how Discover stacks up against some of the competition.
    • Earnest

    Best For:
  • Those who want the flexibility that is most inside their loan.
  • offers both loans that are original refinancing. One standout feature of
  • See loan details/applyEarnestread our full Earnest review student loans is that you can set your own repayment schedule (within limits). Repayment options include an term that is extended repayment period, any time you choose.

    Earnest also offers you the choice to skip one payment per year, that may be helpful through extra-tight periods that are financial

    Need A Motorcycle Loan? Here Are The 6 Best Options - SoFi

    Like Discover, Earnest lets borrowers choose between fixed and interest that is variable. You can also switch between variable and fixed rates without fees, though Earnest does a credit that is hard each time you switch.Eligibility

    SoFiPass a credit checkBe at least 18 years of ageBe a U.S. citizen or permanent resident

    Your debt must be from a Title IV accredited college or universityDebt must be for a completed degree, a degree estimated to complete the next semester, or an incomplete bachelor’s or associate’s degree

    Perks & Benefits

    Set your monthly payment

    • Skip one payment a year
    • Swap between fixed and variable interest rates
    • or
    • .

    SoFi

    • Best for:
    • Those looking for the best variable rate.
    • offers student loan refinancing with fixed rates and rates that are variable. Rates are

    See loan details/apply3.99% – 8.24% APR (including auto-pay discount of 0.25%)read our full SoFi review, that will be less than the rate that is variable for some Discover loans. Like Earnest, you can choose your repayment that is own schedule

    SoFi

    Better Mortgage Review: Affordable Mortgages On An Easy-To-Use Platform - Credible

    borrowers also can sign up for loans that are original to the cost of their education, and unlike Discover, SoFi doesn’t have aggregate limits on its loans.Repayment terms are flexible and relatively brief, ranging from 5 to 20 years. And SoFi does offer cosigner release after two years of on-time payments.

    CredibleEligibilityBe a U.S. citizen of legal ageBe employed or have an offer of employment to start in the next 90 days

    Have graduated from an eligible Title IV accredited university or graduate program

    Have at least $5,000 in student loans to refinance (federal or private)

    Perks & Benefits

    Application is fast, easy, and all*)No that is online penalties
  • No hidden fees
  • See details/apply or read our full Credible review.

    CredibleBest for:

    individuals who need to see each of their loan options in a single place.

    Fiona Vs. LendingTree: Which Is Better? - LendingTree

    Is a loan aggregator, meaning you are showed by them all the loans you can qualify for in one place. Your rates will vary by lender, but you can choose to have Credible

    LendingTree show you the rate that is lowest first.

    Depending on your own loan along with your credit eligibility, Credible loans might have higher fixed rates of interest than some Discover loans. Credible does offer prequalification, however, so checking your rates won’t affect your credit rating.And repayment terms are flexible, starting at only 5 years.Eligibility

    Perks & Benefits

    • Pre-qualification process is completely free and takes about two minutes

    No hard pull on your own credit

    • or
    • .

    See details/applyCredible Credit Disclosureread our full LendingTree review – to evaluate the rates and terms you be eligible for, Credible or our partner lender(s) conduct a credit that is soft that will not affect your credit score. However, when you apply for credit, your full credit report from one or more consumer reporting agencies will be requested, which is considered a credit that is hard and certainly will affect your credit.

    LendingTree

    Best for:

    individuals with limited credit.TierneyMJ is also that loan aggregator, which means that your rates will change because of the lender. Many lenders accept candidates with limited credit, whether you’re consolidating, refinancing, or borrowing that loan when it comes to time that is first

    Most lenders on

    LendingTree(*) offer a wider range of loan terms than Discover does; your term could be anywhere from 5 to 15 years and beyond. Lenders may also have a variety of repayment options, from deferral to immediate repayment if you don’t want to accumulate interest.(*)Eligibility(*)Must apply your loan to an degree that is associate’s bachelor’s degree, master’s degree, or PhD(*)Perks & Benefits(*)Fast and simple application(*)Those with little to no to no credit may apply(*) or (*).(*)Summary(*)Discover items are worth a significant look if you’re looking for private figuratively speaking. The organization offers most of the basics, but its grade rewards and repayment that is generous set Discover apart.(*)Featured image: (*)/Shutterstock.com(*)Read More* that is(

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