Discover Student Loans Review

Overview

Discover offers a broad range of private student loan options tailored for various educational stages, including undergraduate, graduate, MBA, law school, health professions, residency, and bar exam preparation. Parents can also apply for loans independently, and graduates have the option to refinance existing loans.

Pros

Variety of Loan Options: Discover provides specialise loans for different graduate and professional programs, potentially offering lower interest rates for MBA, law, and medical students.
Rewards and Discounts: Students with a GPA of 3.0 or higher can receive a cash reward worth 1% of their loan balance. Additionally, those making interest-only payments during school get a 0.35% interest rate discount.
No Late Fees: Unlike many private loan providers, Discover does not charge late fees.

Cons

Single Repayment Term for In-School Loans: Discover offers only a 15-year repayment term for undergraduate and parent loans and a 20-year term for other loans.
No Pre-Qualification: Discover requires an official application to get a loan offer, as they do not offer a pre-qualification option.
No Co-Signer Release: Co-signers cannot be released from their obligation without refinancing the loan.

Detailed Pros

Variety of Loan Options: Discover provides specialised loans for MBA, law, and medical students, which can help save money on interest compared to general graduate loans.
Rewards and Discounts: Students with a GPA of 3.0 or higher are eligible for a 1% cash reward on their loan balance. Those making interest-only payments during school receive a 0.35% discount on the interest rate.
No Late Fees: Discover goes beyond the industry norm by waiving late fees in addition to application and origination fees.

Detailed Cons

Single Repayment Term for In-School Loans: Discover offers a fixed 15-year repayment term for undergraduate and parent loans and a 20-year term for graduate loans. Refinanced loans can be repaid over 10 or 20 years.
No Pre-Qualification: Borrowers must submit a full application to get a loan offer, as Discover does not offer a soft credit check pre-qualification. However, the multi-year approval feature allows undergraduate students with a co-signer to pre-qualify for future terms.
No Co-Signer Release: Co-signers remain liable unless the loan is refinanced, unlike some lenders who offer release programs under certain conditions.

Student Loans Offered by Discover

Undergraduate Student Loans: No fees, multi-year approval, grade rewards, and discounts for automatic and interest-only payments. Borrow up to the total cost of attendance with aggregate limits.
**Graduate Student Loans

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