What kind of loan is a Discover student loan?

Discover offers student loan refinancing for both federal and private student loans. You can refinance between $5,000 up to the aggregate amount of your education loan debt (maximum limits may apply). Both fixed and variable-rate loans are available. Repayment terms include 10 years or 20 years.

Is Discover Student Loans federal or private?

With no fees, low interest rates, and forbearance options, Discover is a market leader in private student loans. But these loans aren’t for easy money. Borrowers need an excellent credit score or a cosigner to get the loans.

Are discover student loans subsidized or unsubsidized?

Select Loan Type

Discover Undergraduate Loan Federal Direct Loans for Students
Origination Fee Zero 1.057% of loan amount for subsidized and unsubsidized loans with a first disbursement made on or after October 1, 2021 and before October 1, 2022.
Rewards for Good Grades yes no
0.25% Auto Debit Reward yes yes

Are Discover Student Loans simple or compound interest?

Almost all student loans use simple interest. Simple interest loans charge interest only on the principal. Compound interest loans charge interest on the principal and any unpaid interest, which makes them more expensive than simple interest loans. All federal student loans use simple interest.

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Are Discover Student Loans federally backed?

About Discover® Student Loans

Discover Student Loans are made by Discover® Bank, a trusted financial institution for 100 years. Discover Bank offers a variety of financial products, including FDIC-insured savings accounts, credit cards, personal loans and student loans.

Is discover a good private student loan?

Discover’s private student loans are a good option for borrowers who want flexible repayment options in case they need wiggle room in the future. Discover offers a wider range of repayment assistance programs compared with other student loan lenders, including the option to temporarily reduce payments.

Do discover student loans accrue interest while in school?

While you are in school and during your grace period, interest accrues daily. When it’s time to start making payments, the accrued interest is added to your principal balance—or “capitalized.” Your interest rate will apply to this new, larger principal balance.

Can I cancel my Discover Student loan?

To take advantage of the 30-day money-back guarantee, you must mail your request to cancel in writing along with a single check for the amount of the loan, including any amounts paid directly to your creditors. Mail the information to: Discover Personal Loans, PO Box 30954, Salt Lake City, UT 84130-0954.

Does Discover Student Loans do a hard credit check?

That means if you wish to apply, Discover will pull your credit history, and it will be a hard inquiry on your credit reports. It only offers a single loan term of 15 years for undergraduates, 20 years for graduate students and 10 or 20 years for student loan consolidation.

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Is Discover APR fixed or variable?

Select Loan Type

Discover Undergraduate Loan
Interest Rate Fixed 3.99% – 11.59% APR Variable 1.29% – 10.59% APR (3-Month CME Term SOFR + 1.17% to 3-Month CME Term SOFR + 10.47%) Lowest APRs are available for the most creditworthy applicants, and include an interest-only repayment discount and Auto Debit Reward.1

Is discover variable or fixed?

Interest rates and terms

Discover offers both variable- and fixed-rate options across its student loan products.

Can I get a Discover student loan without a cosigner?

Discover Bank offers private student loans without a cosigner, but you must have good credit to get approved. If you have limited or no credit history, you’ll need a cosigner. But if you have established credit and it’s in good shape, you can get student loans, no cosigner.

Does co signing hurt your credit?

Being a co-signer itself does not affect your credit score. Your score may, however, be negatively affected if the main account holder misses payments. … You will owe more debt: Your debt could also increase since the consignee’s debt will appear on your credit report.

Does discover student loans require SAP?

To receive funds from Discover Student Loans, you must complete all of your coursework and be actively pursuing a degree. Discover hasn’t disclosed its exact SAP standards, but most people don’t need to worry about it.