Applying for a Discover student loan is a straightforward process that can help you finance your education. Discover offers student loans for undergraduate, graduate, and professional degrees. Here is a step-by-step guide on how to apply for a Discover student loan.
What is Discover Student loan
Discover Student Loans are private student loans that is offered by Discover Bank to help students cover the cost of their education. These loans are designed to bridge the gap between the cost of attendance and other financial aid, such as scholarships, grants, and federal student loans. Here are some key features and details about Discover Student Loans:
Key Features:
- Loan Types: Discover offers a variety of private student loans for different educational levels, including undergraduate, graduate, MBA, law school, health professions, residency, and bar exam students. Parents can also apply for loans on behalf of their children.
- Interest Rates: Discover provides both fixed and variable interest rate options. Fixed interest rates remain the same throughout the life of the loan, while variable interest rates may change quarterly based on an interest rate index. The interest rates for private student loans are credit-based, meaning they depend on the borrower’s credit history and other factors.
- No Fees: Discover Student Loans have no application, origination, or late fees.
- Repayment Options: Discover offers flexible repayment options, including in-school deferment, where students can choose to make interest-only payments or defer payments until after graduations.
- Rewards: Discover provides rewards for good grades. Students can earn a cash reward for each new Discover student loan if they maintain a GPA of 3.0 or higher.
Step-by-step guide on how to apply for a Discover student loan
Step 1: Determine Your Loan Needs
Before applying for a loan, it’s important to determine the amount you need to borrow. Consider your tuition fees, books, housing, and other educational expenses. Discover allows you to borrow up to 100% of your school-certified cost of attendance, minus any other financial aid you receive.
Step 2: Check Your Eligibility
To be eligible for a Discover student loan, you must meet the following criteria:
- Be enrolled at least half-time in a degree program at an eligible school.
- Be a U.S. citizen, permanent resident, or international student with a U.S. citizen or permanent resident cosigner.
- Be at least 16 years old.
- Pass a credit check. If you don’t have enough credit history, you may need a cosigner.
Step 3: Gather Required Information
Before starting your application, gather the necessary information, including:
- Personal information (name, address, date of birth, Social Security number).
- School information (name, enrollment status, academic period).
- Financial information (income, employment details).
- Cosigner information (if applicable).
Step 4: Start Your Application
You can apply for a Discover student loan online. Follow these steps to start your application:
- Visit the Discover Student Loans website.
- Select whether you are the student or cosigner.
- Indicate whether you have borrowed a student loan from Discover in the past.
Step 5: Complete the Application Form
Fill out the application form with accurate information. Provide details about your school, the loan amount you need, and your personal and financial information. If you have a cosigner, they will need to provide their information as well.
Step 6: Submit Your Application
Once you have completed the application form, review it carefully to make sure that all the information is correct. Submit your application online. Discover will conduct a credit check and review your application.
Step 7: Wait for Approval
After submitting your application, Discover will process it and notify you of the approval status. This may take a few days. If your application is approved, you will receive a loan offer detailing the loan amount, interest rate, repayment terms, and other conditions.
Step 8: Accept the Loan Offer
Review the loan offer carefully. If you agree with the terms and conditions, accept the loan offer. You may need to sign a promissory note, which is a legal agreement to repay the loan.
Step 9: Receive Your Loan Funds
Once you have accepted the loan offer, Discover will disburse the loan funds directly to your school. The school will apply the funds to your tuition and other educational expenses. Any remaining funds will be given to you for other costs.
Step 10: Repay the Loan
Make sure to repay the loan according to the agreed terms. Discover offers various repayment options, including in-school deferment, fixed monthly payments, and interest-only payments. Timely repayment will help you maintain a good credit history and avoid additional fees.
Important Note:
As of January 31, 2024, Discover is no longer accepting new student loan applications. Existing loans are being transferred to Firstmark Services.