Discover is not just a credit card and payment services that competes with Visa and MasterCard. It's also a direct banking company that provides student loans and personal loans. Discover was incorporated in 1960 and is based in Wilmington, Delaware. It has an A+ rating with the BBB and received four stars from Bauer Financial.

How Does Discover's Student Loans Work?

Discover has a wide variety of student loans designed to meet the specific needs of borrowers. This includes student loans for undergraduate students, graduate students, MBA students, health professionals, law students, doctors in residency, and bar exam students.

Discover student loans have zero fees and are quick and easy to apply for. Borrowers can apply online and communicate with loan specialists at any time. Interest rates are extremely competitive and students receive rewards for good grades.

What Are Discover's Interest Rates?

Interest rates vary depending on the credit profile of the borrower and the type of student loan required. This is a breakdown of the interest rate ranges for the main student loan types.

- Undergraduate, graduate, health professional loans, MBA loans and law loans have a variable interest rates range of 2.99% to 9.12% APR and a fixed interest rate range of 6.15% to 11.99% APR. Students with graduate degrees have a better chance of qualifying for lower interest rates.

- Residency loans and bar exam loans have a variable interest rate range of 4.12% to 7.62% APR and a fixed interest rate range of 6.49% APR to 9.99%.

These ranges include a 0.25% discount Discover gives borrowers who agree to automatic debit payments.

How Much Money Can I Borrow from Discover?

Eligible borrowers can apply for loan amounts ranging from $1,000 to 100% of the school-certified cost of attendance, which includes tuition, housing, books and other related expenses minus any other financial aid received.

Bar exam students can apply for anything between $1,000 and $16,000. Doctors undergoing residency training can apply for up to $18,000. Nurses, physical therapists and physician assistants can apply for up to $5,000. .

Which States Does Discover Operate In?

Discover provides student loans to eligible borrowers in all 50 states.

What Is Discover's Application Process Like?

The online application only takes 15 minutes or less to complete. You can also apply over the phone. Borrowers who don't meet the eligibility criteria or who want to qualify for lower interest rates may add a cosigner. Once an application is approved, it can be signed electronically. Unlike other conventional banks, there is no need to visit a local branch to finalize the loan.


How Is Discover Better than Other Lenders?

Discover is a part of Discover Bank, a trusted U.S. banking institution that is well funded and closely regulated. The interest rates are extremely competitive and terms are flexible. It offers a nine-month grace period once students finish school, which is three months more than the customary six months. Payments can be deferred for up to 5 years for students in residency programs. Also, there are no application, origination or penalty fees to worry about.The only real drawback is that it doesn't offer borrowers with protection from unemployment.

  • Loan Term (Years)
    15 - 15
  • Variable APR
    2.99% - 9.12%
  • Fixed APR
    6.15% - 11.99%
  • Graduate Students
  • Parents
  • Undergraduate Students
  • Funding Time
  • No Origination Fee
  • Up to Cost of Attendance
  • Grace Period / Deferred Interest
  • New Loan
  • Refinance
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Discover Bank offers fixed and variable APR loans and allows you to borrow up to the cost of attendance. There are good student rewards plus no origination fees. The only drawback is that there is no protection for borrowers who lose their jobs.

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