Here's What You Need to Know Before Taking Out a Discover Student Loan

Discover Student Loans was created to help students better afford their education by offering them the money needed to go to school. When the financial crisis first occurred in 2008, many private lenders decided to pull out of the student loan race simply because they saw that people were unable to afford all of their responsibilities at the time. This caused many lenders to end up closing out loans that were delinquent and it left the lenders in a tough spot.

Since the cost of college continues to rise, students need help to afford their schooling and Discover Financial Services stepped up to the plate and is now one of the best options available for private lender student loans.

What Does Discover Student Loans Offer Students?

Discover Student Loans is designed to offer both undergraduate and graduate students with the money they need to afford the rising costs Kof school. The lender offers both variable and fixed rates for students and they promise that these rates will be low. In fact, their rates vary for students somewhere between 2.99 percent and 11.49 percent. If you have a good credit score, you will be on the lower end of the spectrum while those with a rocky credit history will be on the higher end of the spectrum.

In addition, the lender also offers a large assortment of deferment options to those students who work within the public service field, military, or are in a residency program.

Discover Student Loans are ranked one of the best lenders and private student loan options because they offer a variety of benefits for those who borrow. For starters, the lender promises zero fees, which means you do not have to pay late fees, origination fees, or loan application fees.

In addition, the lender rewards students who maintain a 3.0 GPA or higher. The reward is a one percent cash reward on the student loan. Lastly, if you choose the auto debit option, you will receive a 0.25% interest rate reduction.

What Are the Eligibility Requirements for Discover Student Loans?

There are eligibility requirements that must be met BEFORE a student’s application will be accepted and a loan originated.

To qualify for a Discover Undergraduate Student Loan, you must:

· Be seeking a college degree

· Be enrolled at a minimum of half-time in any Associate’s or Bachelor’s degree program

· The college you attend must be one of the eligible schools

· You must have satisfactory academic progress

· Pass a credit check

· Be a minimum of 16 years old when you apply

· Be a US citizen or permanent resident

To qualify for a Discover Graduate Student Loan, you must:

· Be enrolled at a minimum of half-time in a graduate program at one of the eligible schools

· Be seeking a degree from the school you are enrolled in

· Be a US citizen or permanent resident

· Pass a credit check

· Be a minimum of 16 years old when completing the application

· You must have a satisfactory academic record

How Do I Apply for Discover Student Loans?

The student loan application process is easy and Discover promises that you can complete the entire application in just 15 minutes or less. In fact, the application can be completed from your computer, a mobile device, or any smartphone.

Most students will require a cosigner, so it helps to check first or have a cosigner lined up just in case. The cosigner will need to meet the requirements and also fill out an application.

Once your application is approved, you will be able to select your interest rate and repayment options. If you need help choosing the type of repayment option, your lender can help you.

Once you have selected your options, you will then sign the loan and accept it.

How Much Money Can I Receive for School?

One of the most pressing questions that you may have is how much money are you eligible to borrow. The amount of money you can borrow will depend on your school status, credit, and other factors.

Once approved, Discover allows you to borrow a full 100% of the school-certified costs for attendance in your enrolled program. This amount is NOT in addition to financial aid, but is AFTER financial aid.

There is a minimum loan amount of $1,000 that you must borrow. Discover does certify the loans and disburse them through your chosen school, so there is no additional money released for your schooling.

Cosigners: What to Know

Discover does state that most students who apply for a student loan will need to have a cosigner on their loan. This is important because if you do not qualify on your own, you will not receive the student loan WITHOUT the cosigner.

If you have a good credit history and are deemed creditworthy, you will NOT need a cosigner. If you find out that you DO need a cosigner, your cosigner must meet the credit guidelines and pass a credit check, they must be a US citizen or permanent resident, and they must be at least 18 years of age.

Cosigners are required to fill out an application as well and they will be responsible for your loan in the event that you stop making payments on it. It is important that you choose someone responsible who has a good credit history to cosign your loan, as this will increase your chances of receiving the student loan you need.

Final Thoughts on Discover Student Loans

Discover Student Loans are a great way for you to fund your dream for college. As with any other loans, you should exhaust all free methods of money first and also make sure that you do not qualify for financial aid BEFORE you apply for a private loan.

If you have done that and still need money for college, Discover is a wonderful lender that has many positive reviews. Before closing, we want to remind you that when you borrow money for college, try not to take out more than you need because you DO have to pay this money back.