How To Refinance Discover Students Loans, Credit Scores & Rates

In this article, you will learn more about how to refinance Discover students loans, credit scores required, rates, and the loan amount which can be refinanced.

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Discover is one of the top credit card issuers. It offers various financial products, including private student loans for graduate, undergraduate, MBA, residency, health profession, law, and bar exam students.

Depending on the type of program, a student can borrow up to the total cost of attendance, making Discover an excellent choice for students that need money to finish their degree. The lender offers forbearance options, a rarity for private lenders, and rewards students for good grades and for graduating from their selected program. Unfortunately, Discover has limited repayment terms and may not be the perfect lender for everyone. People need to know about Discover student loans to make a good decision.

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refinance Discover students loans
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Discover Refinance Student Loans Overview

Before we start discussing Discover, let’s quickly look at what we mean by refinancing.’

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Refinancing is replacing an existing loan with a new loan, along with new terms and interest rates. It is the closest thing you get to a do-over a student loan.

When people refinance, their new lender pays off all their existing loans or loans for them and then issues them a single new private loan. They make payments to one place, not to multiple lenders. That’s one good of refinancing; it makes the loans easier to manage. 

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Discover is a lender that offers multi-year approval. With this option, you can qualify for future undergraduate loans to cover the rest of your education needs. When it is time to take out the next loan, borrowers can use a pre-filled application, and there’s no impact on their credit. 

Undergraduate Loans

If the borrower is an undergraduate student and needs financing to pay for school, Discover’s undergraduate loans are a good option that can help fill the gap. Students qualified for this loan can borrow up to the total cost of attendance and can also be prequalified for future loans with multi-year approval. Undergraduate loans have no origination, application, or late fees, and there are no prepayment penalties if you decide to pay off your loan early.

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Variable Rates

  • 2.98% – 12.58%

Fixed Rates

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  • 4.98% – 13.98%

Loan Amounts

  • $1,000 up to the total attendance cost

Loan Terms

  • Fifteen years

Graduate Student Loans

If you are pursuing a doctoral or master’s degree, you can take out a graduate loan to cover the cost of attendance. Like the undergraduate loans, there are no origination, application, no prepayment penalties, and no late fees.

Variable Rates

  • 3.48% – 13.99%

Fixed Rates

  • 4.98% – 14.99%

Loan Amounts

  • $1,000 up to the total attendance cost

Loan Terms

  • Twenty years

Law School Student Loans

Graduate in law school that needs financing can take out law school student loans to pay for their education. These loans allow borrowers to borrow up to the total attendance cost and choose an interest rate type and repayment option that works for them.

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Variable Rates

  • 3.48% – 12.99%

Fixed Rates

  • 4.98% – 13.99%

Loan Amounts

  • $1,000 up to the total attendance cost

Loan Terms

  • Twenty years

MBA Loans

If you intend to pursue an MBA, you can take out an MBA student loan. With a no-fee MBA loan, borrowers can apply online in as little as 14 minutes and borrow up to the total attendance cost.

Variable Rates

  • 3.75% – 10.99%

Fixed Rates

  • 4.98% – 11.99%

Loan Amounts

  • $1,000 up to the total attendance cost

Loan Terms

  • Twenty years

Health Professions Loans

Health profession student loans are meant for graduate students in osteopathy, pharmacy, physical therapy, allopathy, dentistry, nursing, occupational therapy, optometry physician assistant, podiatry, or veterinary medicine. The loans have no origination, application, late fees, or prepayment penalties.

Variable Rates

  • 3.48% – 8.59%

Fixed Rates

  • 4.98% – 9.59%

Loan Amounts

  • $1,000 up to the total attendance cost

Loan Terms

  • Twenty years

Residency Loans

As a residency student in medical school, borrowers can use a residency student loan to cover the cost of their residency, relocation, internship, and board exam review. Loan maximums depend on their field of study, and loan terms are set at twenty years.

Variable Rates

  • 4.49% to 7.24%

Fixed Rates

  • 5.99% to 8.24%

Loan Amounts (Physical Therapy, Nursing, Occupational Therapy, Physician Assistant)

  • $1,000 – $5,000

Loan Terms

  • Twenty years

Bar Exam Loans

If you are a student preparing to take the bar exam, you can use a bar exam loan to cover the cost of your living expenses and bar study prep classes. Students can borrow up to $16,000, and there are no origination, application, or late payment fees.

Variable Rates

  • 4.99% to 12.99%

Fixed Rates

  • 5.99% to 13.99%

Loan Amounts

  • $1,000 – $16,000

Loan Terms

  • Twenty years

How Discover Refinance Student Loan Works

While most people know Discover for its credit cards, Discover Student Loan is quietly one of the biggest private student loan lenders.

Discover offers private student loan options for students in Law, Residency, Health Professions, undergraduate, graduate, MBA, and Bar Exam programs. It also offers to refinance student loans. 

Discover Student Loans Credit Score Requirements

Discover does not disclose its income requirements or minimum credit score. However, you will generally need good credit to qualify for any private student loan.

Discover Student Loans Rates

Discover’s fixed rates are between 3.99% and 8.99%, and variable rates are between 3.49% and 8.99%. Note that the lowest rates always include autopay enrollment’s 0.25% interest reduction.

In 2022, Discover has raised its lowest available variable rate to 75.4% (from 1.99% APR) and its highest variable rate, 39.2% (from 5.74% APR). Fixed rates have increased 33.4% on the low-end (from 2.99% APR) and 33.4% at the high-end (from 6.74% APR).

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 Unlike most lenders, Discover charges no fees and has no origination fees, application fees, or late fees. And no prepayment penalty, so paying off your student loans early is no struggle. 

Discover also offers auto debit rewards. If, as a student, you sign up for automatic withdrawals for minimum monthly payment, Discover will reduce the interest rate by 0.25%.

If borrowers agree to make interest-only payments while in school, they will also qualify for a 0.35% discount.

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How to Refinance Discover Student Loans

It is important to find a way to refinance your Discover student loans. This can be done through several methods, including a consolidation bank or checking account. With the right strategy, you can reduce your monthly debt and make the most of your student loan experience.You want to have maybe 4 or 5 lenders to choose from. Here are the criteria to use:

  • The interest rate offered by the lender

The main point is to score a lower interest rate. Each lender will offer borrowers a different rate based on their credit score and financial history.

As a borrower, you don’t necessarily need to go through an entire application process to get a ballpark figure—many lenders have a student loan refinancing calculator on their website. 

Once you have narrowed the field further, you can apply and get an initial offer from the lenders on your shortlist.

  • Their customer service

You will be working with your new lender for a while, so hopefully, they’re good with customer service. Read online reviews, ask around with people you know, and put the question out on social media platforms.

Some borrowers may have had a bad experience, but some lenders have excellent customer service. 

  • The terms on their loans

Want to stretch your loan out to 15 years so you can save month-to-month? Or how about paying it off in 5 so you can realize more savings over the life of your loan? Either way, ensure the lender offers loan terms in a reasonable range. 

FAQS

Q. Does Discover have student loan forgiveness?

A. Students can qualify for an interest rate reduction by setting up automatic payments. The Discover platform has a great reputation for good customer service. Discover offers loan forgiveness and forbearance in the event of the primary borrower’s death or permanent disability

Q. Does Discover do a hard pull for student loans?

A. Discover will pull your credit history, which 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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Q. Is it cheaper to refinance student loans?

A. Generally, the more you owe on student loans, the more money you can save by refinancing. Student loan refinancing will save you money if you qualify for a lower interest rate and either keep the same term length or get a shorter one

Q. Is Discover student loans federal or private?

A. Discover student loans may be the product you want. With no fees, forbearance options, and a low-interest rate, Discover is a leader in private student loans. But these loans are not easy money. Borrowers need a good credit score to get the loans

Q. How much will Discover give you for student loans?

A. You may borrow from $1,000 up to the amount your school certifies for that school year for most student loans. Discover offers an option to prequalify loans for future school years to simplify the application process.

Q. Can I get a Discover student loan without a cosigner?

A. With Discover, cosigners are not necessary. However, many borrowers lack an established credit history or sufficient income to qualify them for a student loan on their own. If that’s the case, asking a relative or friend with good credit and steady income to cosign their loan application can help them qualify for a loan and secure a competitive interest rate. 

Q. Do Discover student loans go to school?

A. When your loan funds are disbursed, they go to your school first to pay tuition, fees, and room and board. Any additional funds will be provided to you as a student loan refund to cover other education-related expenses

Q. Are Discover students’ loans secured or unsecured?

A. Student loans fall under the unsecured category but are not treated similarly regarding nonpayment. Failure to pay any debt will result in some collection effort by the creditor.

Q. What type of loan is a Discover student loan?

A. Discover is an online lender that offers private student loans and loan consolidation to nationwide borrowers. It covers up to 100 percent of school-certified college and graduates’ school costs minus other financial aid (aggregate loan limits apply)

Q. Is Discover a Private Student Loan?

A. Yes, 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. 

Conclusion

Discover offers flexible repayment options, allowing borrowers to defer payments until graduation. And it allows borrowers or students experiencing financial hardships to enter into forbearance and postpone payments. 

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