As an independent, transparent marketplace for student loans, Credible will be producing a series of articles profiling lenders in the student loan space.
Discover Student Loans is a part of Discover Bank, a trusted U.S banking institution in existence for over 100 years. Discover’s private student loans are offered at fixed and variable rates, for undergraduate and graduate students who need additional education financing.
Discover Student Loans Highlights:
- low private student loan rates
- great incentives for good grades and upon graduation
- scholarship sweepstakes
Overview:
Discover’s student loans offer an array of private undergraduate and graduate loans at both fixed and variable rates, while also servicing loans of other lenders, starting at a 5.99% fixed interest rate and have no fees whatsoever. Discover provides in school, military, public service, and residency deferment options. One drawback, however, is that Discover does not offer loan consolidation if a borrower ends up with more than one loan.
Rates*: (Valid as of July 2, 2015)
*Interest rates include auto-debit reduction and reflect APR on a deferred payment plan over the life of the loan. See additional details on Discover.
Somewhat counter intuitively, loans that originated with Discover, are serviced by Great Lakes Higher Education Corp. Discover also does not service federal loans, only private loans that they have purchased from other lenders. Borrowers can check their loan balance through an online account or over the phone. Payments can be made online, over the phone, by mail, or through Discover’s auto-debit system. By signing up for auto-debit, borrowers receive a 0.25% interest rate reduction.
Discover Benefits:
Discover Student Loans distinguishes itself from other lenders by offering further rewards for loans that originated with them. Students with a GPA over 3.0 can receive a cash reward of 1% of their principle. In addition, borrowers who took out loans with Discover can receive a reward of 2% off the principle of their loan or in cash when they graduate.
Scholarships:
Like other lenders and loan servicers, Discover chooses to give back to students in various ways. Recently, the company launched a scholarship sweepstakes that will give away $50,000 in scholarships between June 2015 and March 2016 to current high school seniors and undergraduate students. Overall, Discover Student Loans stand out as a lender with zero fees and competitive interest rates that offers more rewards and discounts than many of their competitors.
Who should explore Discover Student Loans?
Discover Student Loans offers private loans for undergraduates and graduates pursuing a number of professional goals. Discover offers a number deferment and in-school repayment options as well as a number of calculators for those who wish to actively manage their student loan payments. Those with strong GPA's should take advantage of Discover's rewards.
To learn more about your private student loan options visit, Credible.