Discover Student Loans Review


Rating: 9.3 / 10 (Excellent)
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Discover Student Loans is the property of Discover Bank, a financial institution with half a century of experience in the industry. Discover Bank offers savings accounts, credit cards, personal loans, and private student loans insured by the FDIC. Its student loan products feature federal and private loan consolidation and fixed or variable interest rates.

How is Discover rated?

Breakdown

9/10
Loan Specifics
10/10
Qualifications
9/10
Customer Experience
9/10
Company Reputation

Overall Rating: 9.3 / 10 (Excellent)

Discover Financial Services, one of the largest credit card issuers in the country, offers a broad range of financial products including home equity, personal, and student loans for undergraduate and graduate students. Its student loan programs, which include private student loan consolidation, can cover up to 100% of school-certified college costs and give borrowers access to flexible repayment options and favorable terms. With a quick and easy application process, fair interest rates, zero fees, good rewards, and 24/7 customer service, Discover positions itself among the leading private student loan providers in the nation.

Discover Loan Specifics

Loan Specifics - 9 / 10

Discover offers a broad range of student loan products including undergraduate and graduate student loans as well as options geared toward MBA students, health professionals, and law students. Since 2016, the company has also been extending refinance loans marketed as private consolidation loans. Interest rates on its loans can be either fixed or variable. APRs on undergraduate loans, for example, can range from a 6.49% to 11.99%. Although variable interest rates appear to be slightly more favorable, these are, of course, subject to market fluctuations.

Discover offers loan amounts of as little as $1,000, yet eligible applicants can obtain up to 100% of their school-certified cost of attendance. It also advertises 0 loan fees, which means its borrowers don't have to cover loan application, origination, or late fees. Another service feature that sets the company apart from the competition is its flexible repayment options, which include deferred payments, low in-school fixed payments, and alternatives for those struggling with financial hardship.
Loan Types
Undergraduate
Graduate
Minimum Loan Amount
1,000
Maximum Loan Amount
Each year, you can borrow up to 100% of your school-certified cost of attendance (including tuition, housing, books and more) minus other financial aid. Aggregate loan limits apply.
Loan Term
Loan terms with Discover can vary, yet the company states loan repayment periods can span 10 or 20 years and are based on the borrower's creditworthiness.
Interest Rates
Fixed
Variable
Fixed APR Range
6.49% APR - 11.99%APR for Undergraduate Student Loans 6.49% APR - 12.99% APR for Graduate Student Loans
Variable APR Range
4.99% APR - 11.24% APR for Undergraduate Student Loans 4.99% APR - 12.49% APR for Graduate Student Loans
Repayment Options
Deferred
Grace Period
Deferment or Forbearance
Cosigner Release

Discover Qualifications

Qualifications - 10 / 10

To qualify for a private student loan through Discover, applicants must be U.S. citizens, legal residents, or international students with an eligible cosigner. They must also be enrolled at least half-time in an eligible school, seeking a degree and making satisfactory academic progress. All applicants must undergo a credit check. If the applicant doesn't have sufficient credit history, he or she may apply with a creditworthy cosigner. The company is transparent with regard to their credit requirements, stating that a borrower with no credit history or a low credit score could increase their likelihood of getting approved for a loan and obtaining a lower interest rate by applying with a cosigner who is either a U.S. citizen or permanent legal resident that can pass a credit check.
Cosigner Required
Course Load
Half-time
Citizenship Requirement
U.S. Citizen
Permanent Legal Resident
Non-U.S. Citizen with a Cosigner

Discover Customer Experience

Customer Experience - 9 / 10

Discover's website offers several resources for student borrowers, including tips on how to apply for financial aid, how to complete the FAFSA application as well as different types of scholarship opportunities. The company also has a student loan repayment calculator and useful FAQs, and offers 24/7 support as well as discounts for students that have at least a 3.0 GPA or who sign up for automatic payments.

Discover advertises a simplified student loan and loan consolidation process. The prospective borrower can apply online in as little as 15 minutes by providing their basic information including their Social Security Number as well as their school and financial information, and then selecting a type of interest rate and repayment option.
Student Loan Calculator
Online Quotes
Additional Services
24/7 Customer Support
Discounts
Get at least a 3.0 GPA (or equivalent) and receive a one-time cash reward of 1% of the loan amount of each new Discover student loan<br /><br /> Get a 0.25% interest rate reduction when you are enrolled in automatic payments during repayment.

Discover Company Reputation

Company Reputation - 9 / 10

Discover is a Better Business Bureau-accredited company with an A+ rating based on few negative customer reviews for a company of its size. The business seems committed to providing timely and satisfactory resolutions to all complaints filed against them, which mostly deal with billing and collection issues. The company has also received a high rating on Truspilot.com, where it holds an 8.4 (Great) score based on mostly positive customer feedback.
Lender Type
Bank
Year Founded
1985
BBB Rating
A+
Number of BBB Positive Reviews
0
Number of BBB Negative Reviews
43
Trust Pilot Rating
8.4 out of 10
Date Collected
2018-03-22

Company Profile

Full Name
Discover Student Loans
Company Website
Headquarters
502 East Market Street, Greenwood, DE, 19950

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Top Rated
9.9 / 10
  • Multiple in-school repayment options
  • Check application status online
  • Loan e-signing
  • Free scholarship registration
  • BBB A+ rating