There is a buzz on the inter webs concerning discover student loans.
The cost of college is rising across the nation, and for many college-bound students, a student loan is the only way to achieve a higher education.
Sure, some students work and pay their own way through school or rely on financial help from parents. But for many college students, this simply isn’t an option. Federal student loans are often a college student’s first choice. There are federal loans for practically everyone, and because these loans do not require a credit check, they are easier to obtain than other types of loans. But unfortunately, there are limits to how much federal aid a student can borrow each year. Some students have higher educational expenses, and after exhausting federal resources they often bridge the gap with private student loans. These are loans offered by private banks and credit unions, and not the federal government.
About Discover Student Loans
There are several choices for private lending, and when comparing your student loan options, you may not immediately think of Discover. This bank, however, isn’t just a credit card company. Discover offers a host of financial products from home loans to online savings accounts, and if you need funding to complete an undergraduate or graduate degree program, multiple options are available to you.
The types of loans offered by Discover Student Loans includes:
- Undergraduate Student Loans
- Health Professionals Loans
- Law Loans
- MBA Loans
- Residency Loans
- Bar Exam Loans
- Graduate School Loans
Features of Discover Student Loans
Private student loans vary by bank or credit union. To determine whether Discover Student Loans are right for you, familiarize yourself with the features and terms of these loans.
1. Annual Loan Limits.
Student loans offered by the U.S. Department of Education may not cover the entire cost of attendance at a college or university. Discover Student Loans, however, can cover up to 100% of tuition, books and other college-related expenses, minus other financial aid (federal loans, grants, scholarships, etc.)
2. Competitive Interest Rates.
Discover Student Loans feature fixed and variable interest rates. Fixed rates range from 6.79% to 7.89% APR, and variable rates currently range from 3.25% to 5.75% APR.
3. Repayment Terms.
For an undergraduate degree, the standard repayment term is 15 years and repayment doesn’t begin until six months after graduation or until enrollment drops to less than half-time. With graduate degrees, the standard repayment term is 20 years and repayment doesn’t begin until nine months after graduation or until enrollment drops to less than half time. Although in-school payments are not required, interest does accrue while in school. Students can make interest payments at anytime to reduce the final costs of their loan.
4. Credit Check.
Unlike federal student loans, which do not require a credit check or cosigner, private student loans are based on creditworthiness. Approval for an undergraduate or graduate student loan with Discover Bank requires a satisfactory credit check. Students who cannot qualify for a loan based on their own credit history can add a cosigner to their loan application. This can include a parent or another person with a good credit history. The cosigner acts as a joint applicant and agrees to repay the student loan if the primary borrower defaults.
5. Payment Options.
Discover offers several options to ensure the timely arrival of payments. Students can sign up for online banking and submit payments via the website, or mail in or submit a payment over the phone. Borrowers who set up automated monthly payments receive a 0.25% interest rate reduction.
Managing your Discover Student Loans
Discover Student Loans feature grace periods between six and nine months, which allows time for you to find a job and prepare for student loan repayment. Timely payments are a must, as your account activity is reported to the credit bureaus each month. Defaulting on your loan can damage your credit score, as well as your cosigner’s credit score, if applicable. For this reason, it is important that you carefully manage your loan.
There are several practical ways to manage Discover Student Loans. Sign up for online banking and you can access your account from your home computer or mobile device. This is the simplest way to keep up with your due date, payments and balance.
You can also monitor your student loan with the help of third-party resources such as SALT. Available at no charge, this multichannel educational program provides college students and alums with tools and resources to take control of their personal finances and manage student loan debt. Once a SALT member, you can track all your federal and private loans in one place, plus compare repayment options.
How to Get Started
If you’re looking for a private student loan with a fixed rate, zero fees and other attractive benefits, apply for a Discover Student Loan. To complete an application online, visit discover.com/student-loans, or call 1-877-728-3030. A student loan specialist is ready to answer any questions and assist you with finding the right private student loan.