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. Rates are extremely competitive and students receive rewards for good grades.

What Are Discover's Rates?

Rates vary depending on the credit profile of the borrower and the type of student loan required.

For consolidation loans, you can choose between having a variable or fixed APR. The variable rate ranges from 4.61% APR to 8.86% APR and the fixed rate ranges from 5.24% APR to 9.23% APR.

For private student loans, you can similarly choose between having a variable or fixed APR. The rates vary based on the type of degree you’re pursuing--such as an undergraduate, MBA or medical-related graduate degree--but the variable rate ranges from 3.75% APR to 10.84% APR and the fixed rate ranges from 5.96% APR to 12.58% APR.

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 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 rates are extremely competitive and terms are flexible. 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)
    10 - 20
  • Min Loan
  • Variable APR
    3.75% - 10.84%
  • Fixed APR
    5.96% - 12.58%
  • Cosigner Optional
  • Undergraduate Students
  • Graduate Students
  • Parents of Dependent
  • Grace Period / Deferred Interest
  • No Origination Fee
  • Student Loan Type
    • Private
    • Refinance
  • Good Student Rewards
  • Funding Time
    1-7 days
  • Up to Cost of Attendance
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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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