Discover student loans are a form of private loan that can be taken out to cover education expenses for college and graduate school. Discover student loans are lent from Discover Bank, which also distributes the Discover credit card. Discover has been a trusted financial institution for over 95 years, and these loans are based on credit. Some of the other financial products offered by Discover Bank include savings accounts, personal loans, student loans and credit cards as well as award-winning customer service.
This type of private student loan is different than other forms of financial aid used for college and graduate school. For example, federal student loans are not based on credit, but the Discover student loan would be. Scholarships and grants are student aid that wouldn’t have to be paid back, but any loan taken out must be repaid. Discover does encourage students to exhaust scholarships and grants before seeking out a loan since it must be paid back.
The Discover student loan payments can be postponed while the student is in school on at least a half-time basis. This feature is not available on all private loans. Discover disperses all loans through the school you attend instead of directly to you to prevent over borrowing. The Discover student loan can be used in any year of college, along with medical school, dental school, law school, business school and other graduate programs.
- Can be used for college and graduate school
- Disbursement handled through the school to prevent over borrowing
- Loan available through a trusted bank
- Site encourages students to exhaust scholarships and grants before taking out loans
- Easy and straightforward application
- Available to complete all parts of the loan online including signing documents
- Earn a 2% graduation reward
- Repayment can be delayed while in school
- This is a loan which must be repaid
- Credit based which could be difficult for some students to obtain
- Some students may need a cosigner if their credit isn’t good enough
Since this is a loan based on credit, the interest rate is going to vary depending on the applicant's credit score. The amount repaid will also depend heavily on how much is borrowed. It is possible to earn a two percent graduation reward as well.
Paying for college often requires several different resources. You may get some money from scholarships, some from grants, and have to supplement with loans. The important thing to remember about the Discover student loan or any loan for that matter is that it must be repaid, whether you graduate or not. The longer you are in school; usually the more interest builds on the money you’ve borrowed so that’s something else to consider. The Discover student loan is passed on credit and can be very helpful in providing the remaining money that you need to cover school expenses. As always, education about the terms and repayment details is very important before accepting any funds.
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