Discover Review: Private Student Loans

Our Take
4.5
TalkFinance rating
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.
Jump to: Full Review

on Discover website

Discover
FIXED APR

3.49 - 12.59%

VARIABLE APR

1.12 - 11.87%

MIN. CREDIT SCORE

Does not disclose

Pros & Cons

  • Among the best for payment flexibility.

  • No late fees.

  • You can’t see if you’ll qualify and what rate you’ll get without a hard credit check.
Compare to Other loans
TalkFinance rating
TalkFinance rating
TalkFinance rating
CHECK RATE CHECK RATE CHECK RATE
EST. APR
EST. APR
EST. APR
LOAN TERM

15 years undergraduate, 20 years graduate

LOAN TERM

5, 7, 10, 12 or 15 years

LOAN TERM

10 to 15 years

MIN. CREDIT SCORE

Does not disclose

MIN. CREDIT SCORE

540

MIN. CREDIT SCORE

Mid-600's

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. 

    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: Talkfinance’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

    Talkfinance believes the best student loan is one you can repay at the lowest interest rate you can get. That's why talkfinance’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. talkfinance does not receive compensation for its reviews. Read our editorial guidelines

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