Discover Reviews: Student Loan Refinancing and Private Student Loans

Discover stands out for its generous options for borrowers who are struggling to make payments.

Anna HelhoskiJanuary 4, 2021
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Student loan ratings

Discover

  • Student loan refinancing

  • Private student loan

The bottom line: Discover Bank, known primarily for its credit cards business, launched Discover Student Loans in 2007. Its refinancing loan is best for borrowers who may need wiggle room on payments, or those who didn’t graduate. Its private loan is best for students who may need wiggle room on payments.

Student loan refinancing review

Discover Student Loan Refinance
Check Rate

on Discover's website

Discover Student Loan Refinance

4.5

NerdWallet rating 
Check Rate

on Discover's website

Fixed APR

3.49 - 6.99%

Variable APR

1.87 - 5.87%

Min. Credit Score

Does not disclose

Pros

  • No late fees.
  • More flexible repayment options for struggling borrowers than other lenders.
  • Can refinance without a degree.

Cons

  • Only 10- and 20-year repayment terms available.
  • No co-signer release available.
  • You can't see if you’ll qualify and what rate you’ll get without a hard credit check.

Best for borrowers who may need wiggle room on payments, or those who didn't graduate.

Full Review

Refinancing student loans through Discover is a good option for financially strong borrowers who may need wiggle room in the future. Discover offers a wider range of repayment assistance programs compared with other student loan refinance lenders, including the option to temporarily reduce payments.

Discover student loan refinancing at a glance

  • Generous repayment flexibility for struggling borrowers.

  • No late fees.

  • Only 10- and 20-year repayment terms available.

How Discover could improve

Discover could improve its student loan refinance product by:

  • Conducting soft credit checks to give personalized rate estimates.

  • Providing a greater number of repayment schedules.

  • Offering a co-signer release program.

Discover student loan refinancing details

  • Soft credit check to qualify and see what rate you’ll get: No.

  • Loan terms: 10 or 20 years

  • Loan amounts: $5,000 to $150,000. Aggregate loan limits apply. Higher limits may apply to some fields of study.

  • Can transfer a parent loan to the child: No.

  • Application or origination fee: No.

  • Prepayment penalty: No.

  • Late fees: No.

Compare Discover’s range of interest rates with other student loan refinance lenders. Your actual rate will depend on factors including your — or your co-signer’s — credit history and financial situation. To see what rate Discover will offer you, apply on its website.

Financial

Discover doesn’t disclose specific details about what it takes to qualify for its student loans. Borrowers must pass a credit check, have a positive credit history and have enough income to afford their debts.

  • Minimum credit score: Did not disclose.

  • Minimum income: Did not disclose.

  • Typical credit score of approved borrowers or co-signers: 660 or above.

  • Typical income of approved borrowers: Did not disclose.

  • Maximum debt-to-income ratio: Did not disclose.

  • Can qualify if you’ve filed for bankruptcy: Yes, though you’re more likely to qualify if the bankruptcy isn’t recent.

Other

  • Citizenship: Must be a U.S. citizen or permanent resident.

  • Location: Available to borrowers in all 50 U.S. states.

  • Must have graduated: No.

  • Must have attended a school authorized to receive federal aid: Yes.

  • Percentage of borrowers who have a co-signer: Did not disclose.

Many lenders are offering relief related to COVID-19. Check this list of private loan relief options to see what this lender offers.

  • Academic deferment: Postpone payments if you return to school at least half-time.

  • Military deferment: Postpone payments if you're on active military duty.

  • Public service deferment: Postpone payments if you're serving in a qualified public service organization.

  • Medical residency deferment: Postpone payments during your medical residency.

  • Forbearance: Postpone payments for up to 12 months if you're experiencing unemployment, economic hardship, an excessive student loan burden or a medical disability. Borrowers cannot receive 12 months of forbearance consecutively.

  • Temporary interest rate reduction: Get a lower interest rate, resulting in a lower monthly payment, for up to 12 months. Payments are subject to a $50 minimum per month.

  • Temporary payment reduction: Pay just the interest on your loan, subject to a $50 minimum, for up to six months. The loan must be less than 60 days late to qualify.

  • Co-signer release available: No.

  • Death or disability discharge: Yes.

  • Loan discharge if co-signer dies or becomes disabled: No.

repayment preferences

  • Allows greater-than-minimum payments via autopay: Yes.

  • Allows biweekly payments via autopay: Yes.

  • Loan servicer: Discover.

  • In-house customer service team: Yes.

  • Process for escalating concerns: Yes.

  • Borrowers get assigned a dedicated banker, advisor or representative: No.

  • Average time from approval to payoff: 30 to 45 days after a borrower applies.

Lowest APRs shown for Discover Student Loans are available for the most creditworthy applicants for the Discover Private Consolidation Loan and include a 0.25% interest rate reduction while enrolled in automatic payments. The fixed interest rate is set at the time of application and does not change during the life of the loan. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable margin percentage. For variable interest rate loans, the 3-Month LIBOR is 0.250% as of Jan. 1, 2021. Discover Student Loans may adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the "interest rate change date"), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). This may cause the monthly payments to increase, the number of payments to increase or both. Our lowest APR is only available to customers with the best credit and other factors. Your APR will be determined after you apply. It will be based on your credit history, which repayment option you choose and other factors, including your cosigner's credit history (if applicable). Learn more about Discover Student Loans interest rates at DiscoverStudentLoans.com/Rates.

Before refinancing with Discover

Before deciding on a student loan refinance lender, compare multiple student loan refinance options to make sure you’re getting the best rate you qualify for. In addition to interest rates, compare lenders’ repayment options and the flexibility they offer borrowers who are struggling to make payments.

If you aren’t eligible to refinance with Discover

If Discover denies your refinance application, the lender will let you know why. Depending on the reason, you may want to consider other lenders or need a co-signer.

NerdWallet recommends prequalifying with multiple refinance lenders before you apply. This will let you know which lenders you may be eligible with, without affecting your credit.

How does this loan compare?

Discover Student Loan Refinance
CommonBond Student Loan Refinance
NerdWallet rating 
NerdWallet rating 
Fixed APR

3.49 - 6.99%

Fixed APR

2.98 - 5.79%

Variable APR

1.87 - 5.87%

Lowest APRs shown for Discover Student Loans are available for the most creditworthy applicants for the Discover Private Consolidation Loan and include a 0.25% interest rate reduction while enrolled in automatic payments. The fixed interest rate is set at the time of application and does not change during the life of the loan. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable margin percentage. For variable interest rate loans, the 3-Month LIBOR is 0.250% as of January 1, 2021. Discover Student Loans may adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the “interest rate change date”), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). This may cause the monthly payments to increase, the number of payments to increase or both. Our lowest APR is only available to customers with the best credit and other factors. Your APR will be determined after you apply. It will be based on your credit history, which repayment option you choose and other factors, including your cosigner’s credit history (if applicable). Learn more about Discover Student Loans interest rates at DiscoverStudentLoans.com/Rates.

Variable APR

1.99 - 5.61%

Offered terms are subject to change and state law restriction. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. All variable rates are based on a 1-month LIBOR assumption of 0.16% effective Sep 1, 2020 and may increase after consummation.

Min. Credit Score

Does not disclose

Min. Credit Score

680

Private student loan review

Discover Private Student Loan
Check Rate

on Discover's website

Discover Private Student Loan

4.5

NerdWallet rating 
Check Rate

on Discover's website

Fixed APR

4.59 - 12.99%

Variable APR

1.59 - 11.99%

Min. Credit Score

Does not disclose

Pros

  • More flexible repayment options for struggling borrowers than other lenders.
  • No late fees.

Cons

  • You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.

Best for students who may need wiggle room on payments.

Full Review

Discover's private student loans are a good option for borrowers who want flexible repayment options in case they need wiggle room in the future. Discover offers a wider range of repayment assistance programs compared with other student loan lenders, including the option to temporarily reduce payments.

Discover private student loan at a glance

  • Generous repayment flexibility for struggling borrowers.

  • International students can qualify with a co-signer.

  • Only one repayment term option.

How Discover could improve

Discover could improve its private student loans by:

  • Conducting soft credit checks to give personalized rate estimates.

  • Providing a greater number of repayment schedules.

  • Offering a co-signer release program.

Discover private student loan details

  • Soft credit check to qualify and see what rate you’ll get: No.

  • Loan terms: 15 years.

  • Loan amounts: $1,000 minimum. Maximum: Your total cost of attendance, minus other financial aid.

  • Application or origination fee: No.

  • Prepayment penalty: No.

  • Late fees: No.

Compare Discover's range of interest rates with other private student loan lenders. Your actual rate will depend on factors including your — or your co-signer's — credit history and financial situation. To see what rate Discover will offer you, apply on its website.

Financial

Discover doesn’t disclose specific details about what it takes to qualify for its student loans, but there’s a good chance you’ll qualify if you have good credit or apply with a co-signer who does. Discover also considers other factors, such as area of study and potential income.

  • Minimum credit score: Did not disclose.

  • Minimum income: Did not disclose.

  • Typical credit score of approved borrowers or co-signers: 750+.

  • Typical income of approved borrowers: Did not disclose.

  • Maximum debt-to-income ratio: Did not disclose.

  • Can qualify if you’ve filed for bankruptcy: Yes; you’re more likely to qualify if the bankruptcy isn’t recent.

Other

  • Citizenship: Must be a U.S. citizen or permanent resident. International students are eligible if they apply with a co-signer who is a U.S. citizen or permanent resident.

  • Location: Available to borrowers in all 50 U.S. states.

  • Must be enrolled half-time or more: Yes.

  • Types of schools served: Must attend a school authorized to receive federal aid.

  • Percentage of borrowers who have a co-signer: Did not disclose.

Many lenders are offering relief related to COVID-19. Check this list of private loan relief options to see what this lender offers.

    In-school repayment options

    • Immediate: Begin making full monthly payments as soon as the loan is disbursed. This option will save you the most in interest.

    • Interest-only: Make monthly interest payments while you're in school and during your grace period. You'll get a 0.35% interest rate discount for choosing this option.

    • Fixed: Make fixed, $25 payments while you’re in school and during your grace period.

    • Deferred: You won’t be required to make any payments until your grace period ends, but you can choose to make payments if you’d like. Interest will accrue while you’re in school and will capitalize, or get added to your principal balance, at the end of your grace period.

    Post-school repayment options

    • Grace period: 6 months.

    • Academic deferment: Postpone payments if you return to school at least half-time.

    • Military deferment: Postpone payments if you're on active military duty.

    • Public service deferment: Postpone payments if you're serving in a qualified public service organization.

    • Medical residency deferment: Postpone payments during your medical residency.

    • Grace period extension: Discover offers an Early Repayment Assistance Program that can extend your grace period. This program lets borrowers postpone payments for three months, but you must be in the first three months of repayment to be eligible.

    • Forbearance: Postpone payments for up to 12 months if you're experiencing unemployment, economic hardship, an excessive student loan burden or a medical disability. Borrowers cannot receive 12 months of forbearance consecutively.

    • Temporary interest rate reduction: Get a lower interest rate, resulting in a lower monthly payment, for up to 12 months. Payments are subject to a $50 minimum per month.

    • Temporary payment reduction: Pay just the interest on their loan, subject to a $50 minimum, for up to six months. The loan must be fewer than 60 days late to qualify.

    • Co-signer release available: No.

    • Death or disability discharge: Yes.

    • Loan discharge if co-signer dies or becomes disabled: No.

    Repayment preferences

    • Allows greater-than-minimum payments via autopay: Yes.

    • Allows biweekly payments via autopay: Yes.

    • Loan servicer: Discover.

    • In-house customer service team: Yes.

    • Process for escalating concerns: Yes.

    • Borrowers get assigned a dedicated banker, advisor or representative: No.

    • Average time from application to approval: Students can apply in 15 minutes or less. It can take two weeks for approval because of the required paperwork and waiting times.

    • Reward for good grades: Discover offers a Rewards for Good Grades benefit, which is a 1% cash reward if you earn a 3.0 GPA or higher. Incoming freshmen may qualify for an additional cash reward based on their high school grades (incremental to the existing cash reward).

    Lowest APRs shown for Discover Student Loans are available for the most creditworthy applicants for undergraduate loans and include a 0.25% interest rate reduction while enrolled in automatic payments. The interest rate ranges represent the lowest and highest interest rates offered on Discover student loans, including Undergraduate Loans. The fixed interest rate is set at the time of application and does not change during the life of the loan. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable margin percentage. For variable interest rate loans, the 3-Month LIBOR is 0.250% as of Jan. 1, 2021. Discover Student Loans may adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the "interest rate change date"), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). This may cause the monthly payments to increase, the number of payments to increase or both. Our lowest APR is only available to customers with the best credit and other factors. Your APR will be determined after you apply. It will be based on your credit history, which repayment option you choose and other factors, including your cosigner's credit history (if applicable). Learn more about Discover Student Loans interest rates at DiscoverStudentLoans.com/Rates.

    Before applying for a Discover student loan

    Before taking out a Discover student loan or any other private student loan, exhaust your federal student loan options first. Submit the Free Application for Federal Student Aid, known as the FAFSA, to apply.

    » MORE: NerdWallet’s FAFSA Guide

    Compare your private student loan options to make sure you’re getting the best rate you qualify for. In addition to interest rates, look at lenders’ repayment alternatives and the flexibility they offer to borrowers who struggle to make payments.

    If you aren’t eligible for a Discover student loan

    If Discover denies your student loan application, the lender will let you know why. Depending on the reason, you may want to consider other lenders or, if you haven’t already, try applying with a co-signer.

    » MORE: Does American Express offer student loans?

    If you don’t have access to a co-signer — or still aren’t eligible with one — consider lenders that don’t require co-signers or specialize in bad or no credit student loans.

    STUDENT LOANS RATINGS METHODOLOGY

    NerdWallet believes the best student loan is one you can repay at the lowest interest rate you can get. That's why NerdWallet’s student loan ratings reward lenders that offer a variety of loan terms, limit their fees and penalties, and extend borrowers multiple options to avoid default. Points are also awarded for soft credit checks, underwriting transparency and other consumer-friendly features. Use these ratings as a guide, but we encourage you to shop around for the lowest interest rate you can qualify for. NerdWallet does not receive compensation for its reviews. Read our editorial guidelines

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