Discover Private Student Loans Overview

With Private student loan from Discover, you can supplement your other sources of financial aid, including scholarships and federal student loans, giving you the flexibility to cover up to 100% of your college expenses. You can pay for tuition, books, supplies, housing, and more.

Discover Private Student Loans come with zero up-front fees and a 2% Graduation Reward. That's a 2% cash reward on your outstanding principal balance at graduation. And you won't have to make any payments while you are enrolled in school at least half-time. You can also receive a 0.25% rate reduction if you sign up to have your payments automatically debited from a personal bank account.

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Features and Benefits

• Up to 100% of your cost of attendance minus other aid, based on certification
• No origination, guarantor, or prepayment fees
• Exclusive 2% graduation reward based on your outstanding principal balance
• Rates as low as Prime minus 0.50%, based on credit evaluation
• The funds are certified by your school's financial aid office and sent directly to the school on your behalf

E-Signature helps make it faster to apply and submit your application. We recommend having your co-signer and reference information available when you apply to help further speed up the process.

Eligibility

You must be a U.S. citizen or a permanent resident, and be enrolled at least half-time in a 4 or 5 year degree program. Additionally, you must have a cosigner for your loan application, and you and your cosigner must both pass a credit check.

What is my interest rate?

The interest rate is a combination of the Prime rate plus a margin. The rate ranges from Prime minus 0.50% to Prime plus 4.75%. The rate will fluctuate as the Prime rate changes every three months.

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Are the funds from the loan sent directly to me?

No, a check will be sent directly to your school. If you have questions about what you can use the funds for, you should check with the financial aid department at your college.

What are the different repayment options?

You have three options including deferment or repayment of interest only or interest and principle.

Full Deferral: No principal or interest payments due while enrolled in school (up to four consecutive years). Payment of principal and interest will begin 6 months either after graduation or if no longer enrolled at least half time. Interest will continue to accrue during the deferment period and will be capitalized (added to the loan balance) at the time of repayment.

Interest Only: Pay only accrued interest while enrolled in school (up to four consecutive years). Payment of principal and interest will begin either 45 days after graduation or withdrawal from school.

Immediate Repayment: Payment of principal and interest will begin after the loan is fully disbursed.

How long are repayment terms for the private student loan?

The standard repayment term is 15 years subject to a $50 minimum monthly repayment amount.

Coverage and Versatility

Private student loans are a handy form of financial aid that can be used to cover expenses not met by federal financial aid.  In addition to tuition and room and board, private student loans can be used to cover virtually any school related expense:

• Transportation and housing expenses
• Books, supplies, Lab fees and computers

Apply for a Discover Private Student Loan