Discover the overview of student loans 2023


Borrower tip: Refinancing federal student loans to a private student loan may make you ineligible for certain types of protections, such as income-based repayment plans, federal debt forgiveness programs, and forbearance/deferral options through the Department of Education.

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Student loan options from Discover are:

  • Undergraduate.
  • Complete.
  • Parent.
  • MBA.
  • Law School.
  • Faculty of Medicine.
  • Residence.
  • Bar exam preparation courses and living expenses.
  • Student loan refinancing for students and parents.

Discover offers fixed and variable rate student loans. You can apply for a loan of $1,000 up to the total cost of attendance, minus other financial aid.

There are no application, origination, or late fees.

Discover does not disclose minimum FICO credit score, minimum credit history, or maximum debt-to-income ratio requirements for loan approval, and pre-approvals are not available. You will need to apply before you can find out about the approval and terms of the loan.

Co-signers are accepted. Discover first evaluates individual student borrowers and then recommends a cosigner option if needed.

To qualify for a student loan, you must fill out and submit an application, then undergo a tough credit check to receive your offer. Discover does not disclose its minimum required credit score. If you do not have sufficient credit history, you may need to request a co-signer who has adequate credit for the loan. With most student loans, you can borrow from $1,000 up to the amount your school confirms for that school year. Discover offers the option to pre-qualify for loans for future school years to simplify the application process.

Discover does not publish minimum credit scores for student loans. You’ll likely need good credit to qualify, and if you don’t have that, you’ll need a cosigner to get the loan. The company further evaluates applications according to field, additional funding sources, marks and other information from the application.

While your application can be completed in as little as 15 minutes, school certification timeframes vary from school to school, but typically take three to five weeks to process. Once your school approves your loan, the school will schedule a disbursement.

Discover student loans that can decide whether to pay in school. Repayment options include:

  • Interest only in school.
  • Flat monthly payments of $25 while in school.
  • Deferred payment, no school payments required.

Discover does not publish specific requirements or policies regarding forbearance or deferment due to financial hardship. However, the lender offers options for borrowers who are experiencing financial difficulties.

If the primary borrower dies or is permanently disabled, the loan is forgiven for both borrowers and co-signers. However, Discover will not release the co-signer if, for example, the primary borrower makes a certain number of on-time payments or builds their own credit.

Undergraduate and graduate students can earn a one-time reward of 1% of each new Discover student loan when they earn at least a 3.0 GPA or equivalent.

Customers can also reduce their student loan interest rate by 0.25 percentage points when enrolled in automatic payments.

Discover has an A+ rating from the Better Business Bureau and is a BBB accredited business.

In 2022, the Consumer Financial Protection Bureau received 125 student loan complaints on Discover. The most common problems related to negotiations with the creditor or administrator and difficulties with repayment of the loan. Discover provided a timely response to all but one complaint to the CFPB. Discover closed 113 with explanations, seven with non-monetary relief and five with monetary relief.

US-based Discover representatives are available 24 hours a day, 7 days a week.

  • Students who want to be rewarded for good grades.
  • Students who want more loan options.
  • Students who do not want to pay loan fees.