Discover Review  

By loansmack

Key Features

  • Student loans for undergraduate and graduate.
  • Refinance student loans for former students.
  • Can apply with & without a cosigner; no cosigner release offered.
  • 10, 15, 20 year repayment terms.
  • Undergrad Rates:  Variable Rates - 4.37% – 10.37%  Fixed Rates - 6.49% – 11.99%.
  • Graduate Rates: Variable Rates - 4.37% – 11.62%  Fixed Rates - 6.49% – 12.99%.  
  • Refinance Rates: Variable Rates - 3.87% – 7.12%  Fixed Rates - 5.24% – 8.24%.  
  • No origination fees or prepayment penalties.
  • Interest-rate reduction of 0.25% if you enroll in Auto Pay.

About Discover

Discover Student Loans allows students to take out loans to pay for college, as well as refinance student loans for people that have already graduated. The student loan division was started in 2010, when Discover Bank acquired The Student Loan Corporation.


  • Ability to apply for a student loans without a cosigner - Not many lenders will allow you to apply for a student loan without a cosigner.
  • Zero Fees - No application fees, no origination fees, and no late fees.


  • Rates – Depending on your credit or your cosigner's credit, you may not get your desired rate. 
  • History of Bad Practices - Between 2011 - 2014 Discover Loans was involved in illegal loan-servicing tactics, including overstating monthly minimum amounts due.  These practices affected borrowers whose loans were made through Citibank and were being serviced by Discover. Discover was also ordered to refund $16 million to customers after it broke debt collection laws by making collection calls too late at night and too early in the morning.

How to get started with Discover

You can get started with Discover through their online process.  Remember, when you get a rate estimate from a lender, this involves a 'soft credit' check, which will not affect your credit score.  When you decide to actually apply for a loan, the lender will do a hard credit pull which will slightly affect your credit score.

Documents you'll need for when applying to most lenders:

  • Government ID (passport, driver's license, green card).
  • Income verification (if applicable); this can include pay stubs, W-2's, etc.
  • Social Security number.