Discover Student Loans Review: Is It Good?

Discover Student Loans Review: Is It Good?

Discover Student Loans provides no-fee student loan financing. But you will have nice credit or a cosigner. Read on to see if Discover is nice for you.

Overall Score

4.0

Customer Service

5.0

Loan Term

4.0

Ease of Use

5.0

Interest Rates

3.0

Payment Flexibility

3.0

5-point scale (the upper, the higher)


Pros and Cons

  • 30 Days to resolve and settle for and three day proper to cancel interval
  • No late charges for missed funds
  • Borrowers can obtain 1% money again for good grades on every newly added loan
  • There are limitations on the varieties of loans eligible
  • No cosigner launch except you might have consolidated loans previous to 2012
  • Lack of reimbursement instances

Bottom Line

Good possibility as they provide money again for brand new loans and no late charges, however do not plan to launch a cosigner.

What Discover Student Loans Offer

Discover Student Loans provides “no fee student loans” and can cowl as much as 100% of the price of attendance at your chosen college. They supply packages for undergrads and grads, as nicely student loan refinance choices.

Undergrad Loans

Discover Student Loans advertises their undergrad loan as a “supplement to federal loans.” All over their web site, they encourage you to exhaust all different choices for monetary assist earlier than securing a non-public loan.

If you qualify, you’ll be able to borrow as much as 100% of the price of attendance annually; nonetheless, it is best used as a “filler” for the cash you do not get from federal loans or scholarships.

In order to qualify, you need to:

  • Attend college at the least half-time
  • Work in direction of an actual diploma
  • The college should be capable of confirm that you’re performing nicely and making progress towards your diploma
  • Be at the least 16 years outdated
  • Have good credit or a credit-worthy co-signer

Grad Loans

If you wish to take your research additional than an undergrad diploma, Discover Student Loans provides choices for the next packages:

  • Masters diploma
  • MBA
  • Doctorate
  • Law college

Discover breaks the graduate packages down by diploma, and every program has its personal corresponding rates of interest. Generally, these striving for a doctoral or regulation diploma are inclined to have the decrease rates of interest.

Refinance/Consolidate Student Loans

Discover Student Loans additionally provides student loan refinance and consolidation loans. Unlike their commonplace student loans, although, they’ve a minimal loan quantity of $5,000.

The refinance loan is an efficient possibility once you wish to consolidate a number of personal loans into one cost or once you wish to launch a co-signer and the present bank will not permit it.

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The refinance loan has the identical advantages as their commonplace student loans. There are not any origination charges, processing charges, or prepayment penalties. The solely phrases Discover provides, nonetheless, are 10- or 20-year phrases.

Watch Your Federal Loans: If you might have federal student loans, use warning earlier than refinancing them. It’s clever to debate your choices with the Department of Education first. They might have helpful reimbursement choices and even forgiveness packages you need to use.

If you refinance out of your federal loans into a non-public loan, you remove these choices for good.

Who Benefits from Discover Student Loans?

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Students who’ve exhausted all different avenues of monetary help for faculty tuition profit from Discover Student Loans. If you’re a good danger, that means you might have good credit or a stable co-signer, they provide charges that compete nicely with federal student loans. Discover additionally provides a couple of advantages you will not discover wherever else.

Reasons Why We Like Discover Student Loans

  • The utility course of is fast. Like many different student loan suppliers, the applying course of is completed on-line and takes round quarter-hour to finish.
  • You will not pay any charges. Not charging any charges is a big profit for student loan debtors. Origination charges and processing charges alone can price a number of thousand {dollars}. Discover additionally does not cost late charges on their loans.
  • You can select between mounted or variable rates of interest. You can select the kind of rate of interest that fits your skill to pay the perfect. Variable rates of interest might change as usually as as soon as per quarter, although. Keep that in thoughts as you make your selection.
  • You can get assist in the event you lose your job. Discover provides a number of choices for debtors having issue making their funds. They supply non permanent options, together with extensions, forbearance, and decreased cost choices.
  • You have partial curiosity cost choices. Discover provides debtors two reimbursement choices. The first requires a $25 minimal month-to-month cost if you are at school and for six months after you graduate. This helps convey the loan stability down once you enter full reimbursement. The second works similar to a federal student loan. Your month-to-month funds are deferred till six months after you graduate, at which level you will then pay principal and curiosity funds. Deferred funds accrue curiosity whereas not in reimbursement, which will get tacked on the back-end of your loan.
  • You can get rewarded for good grades. Discover provides a one-time reward value 1% of the principal stability of your loan. You can acquire this by reaching a 3.0 GPA throughout at the least one time period throughout the interval coated by your loan. You should declare your reward inside six months of the coated time period or inside six months of the ultimate loan disbursement, whichever comes later.
  • Get assist once you want it. Discover has all US-based customer support representatives who can be found that will help you around-the-clock, 7 days per week.
  • Get assist paying for bar examination help. If you graduated from regulation college throughout the final six months, you’ll be able to borrow as much as $16,000 to arrange for the bar examination.
  • You can get monetary savings with auto debit. Setting up computerized funds might cut back your rate of interest by 0.25%.
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Reasons You May Want to Look Elsewhere

  • You cannot get pre-qualified. Many student loan suppliers present a pre-qualification, which is barely a gentle pull in your credit. This provides you the chance to match provides from totally different lenders. Without that possibility, you could really feel obligated to take the supply Discover supplies, at which level they may hit your credit with a tough inquiry.
  • You solely have one possibility for a reimbursement time period. Discover solely provides a 15-year time period for undergrads and a 20-year time period for grads. The longer you borrow cash, the extra curiosity you pay. While you’ll be able to prepay at any time, it stretches out your principal over an extended interval than many different packages, costing you extra ultimately.
  • You will not have a co-signer launch possibility. Many school students require a co-signer on their student loans resulting from a scarcity of a credit historical past. Having the choice to launch that particular person after a few years of funds is a pleasant possibility, although. Discover doesn’t supply this function. If you wish to remove a co-signer, you will need to refinance the loan.

The Application Process

Discover makes the net utility course of easy. Aside out of your commonplace private info, you will want:

  • Your Social Security quantity
  • Information about your meant college, together with the identify, program of examine, and enrollment dates
  • Information about any monetary assist already obtained
  • Amount of cash requested
  • Information about your revenue, property, and liabilities

If you plan to make use of a co-signer, they might want to present fundamental figuring out info, in addition to:

  • Their Social Security quantity
  • Information about their employment and revenue
  • Information about their revenue, property, and liabilities
  • Amount of cash requested
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On Discover’s web site, you can begin the method by selecting your chosen college from their pre-populated record. From there, you enter your private info and submit the applying. Discover might ask for revenue or asset paperwork, which you’ll add on-line in just some minutes.

If you might be permitted, Discover disburses the funds to the college based on the college’s required cost dates.

Need to Contact Discover Student Loans? Discover Student Loans’ customer support brokers can be found 24/7 by way of telephone or electronic mail. However, they don’t have a web based chat possibility like many different student loan lenders have.

You can name Discover Student Loans at 1-800-STUDENT.

Once you settle for considered one of their student loans, they provide the choice to electronic mail them by way of your portal after you log in.

How It Compares

Citizens Bank:
The largest distinction between Citizens Bank and Discover is the varied time period choices. Discover restricts you to at least one time period. Citizens Bank provides 5-, 10-, and 15-year reimbursement phrases. Citizens Bank does supply a co-signer launch possibility, however not for at the least 36 months.

CommonBond:
You’ll want a credit-worthy co-signer to use for a loan with CommonBond. They do not lend to students alone. CommonBond expenses a 2% origination charge, however does not cost utility charges or prepayment penalties.

Ascent:
If you wish to apply for an unbiased student loan, Ascent might have what you want. They supply unbiased and co-signed loans with no origination, processing, or prepayment charges. They additionally supply a wide range of reimbursement choices and loads of schooling previous to taking out the loan.

Bottom Line

Discover Student Loans could also be a viable possibility for you if you do not get sufficient cash from federal student assist. Because they do not supply the choice to pre-qualify, you could wish to exhaust your different choices first. Their good student reward and curiosity cost choices do make it a positive possibility for debtors making an attempt to get forward of their debt earlier than commencement.

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