Discover Undergraduate Student Loan Review
We rate Discover Student Loans as one of the best private student loans for college students. Their rewards program is unparalleled and they are a remarkably flexible lender. But if you’re thinking about getting a cosigner, make sure they know there’s no cosigner release.
How does this loan compare?
Discover has one of the better private student loan options out there for college students. Why? First off, they offer a slew of unique rewards: a good grades cash reward (even for incoming freshmen), a graduation reward, and an interest-only repayment discount. That, combined with their better-than-average interest rates and no fees (not even for late payments), means Discover Student Loans is one of the lowest-cost options out there.
When it comes to repayment flexibility, Discover also stands out. They offer a partial forbearance option in addition to a full forbearance. A forbearance allows financially distressed borrowers to suspend repayment on their student loans. A partial forbearance involves interest-only payments, which will keep the loan from getting larger and snowballing out of control. When you graduate, they’ll give you 9 months of a grace period until you start repaying your loan (3 months more than average). And, if you’re stressing out about re-applying for financing every year, Discover has a multi-year option, eliminating the need to do so.
So, in sum, they offer a lot of great things. Where’s the downside? Their cosigner policy. Having a cosigner is optional; but if you wind up getting one, they should know that Discover does not offer cosigner release. Additionally, if you decide to check your rates, Discover will perform a hard inquiry (not a soft one, like other lenders).
Discover Student Loans - Private Student Loan Details
- Credit Check: Hard
- Repayment Terms: 15 years
- Minimum Borrowing Limit: $1,000
- Yearly Borrowing Limit: 100% of Cost of Attendance
- Application Fee: None
- Origination Fee: None
- Prepayment Penalty: None
- Late Fee: None
- Minimum Credit Score: Not specified by lender
- Minimum Annual Income: Not specified by lender
- Citizenship Restriction: Available to Citizens, Permanent Residents, and International Students with a credit-worthy Citizen or Permanent Resident cosigner
- Minimum Enrollment Restriction: Half-Time
- List of States where Loan is Not Available: None
- Approved Schools Include: Not specified by lender
- Immediate Principal and Interest Repayment: Yes
- Fixed Monthly Repayment: Yes, 25
- Interest-Only Repayment: Yes
- Full Deferment: Yes
- Length of Grace Period: 9 months
- Maximum Deferment Period: 36 months
- Maximum Forbearance Period: 12 months
- Cosigner Release Option: None
- Death Discharge: Yes
- Disability Discharge: Yes
- US-Based Call Center: Yes
- Hours of Operation (in addition to weekdays): 24/7
- Application Timeline: 15 minutes to submit, 30 to 45 days to process
- Scholarship Search Tool: Yes
- Sponsors a Scholarship: Yes
- Job and Career Assistance: Yes
- Financial Literacy Training: Yes