When you think of Discover, you probably don’t immediately think of student loans. In fact, you might think that Discover would be the last corporate entity you’d want to go to for a long-term academic loan. After all, credit card companies are notorious for their high interest rates (which give cardholders an incentive to pay them off as quickly as possible). However, Discover student loans are actually very competitive with other private student loans.
If you need to supplement your federal financial aid so that you can afford the cost of attendance for either undergraduate or graduate school, you might want to consider Discover student loans for a number of reasons.
No Maximum Loan Limit
First of all, unlike other lenders, Discover student loans doesn’t have a maximum loan limit. If you have multiple majors or you’re planning on an extensive academic career, that’s really good news. Students at prestigious universities are having a harder and harder time finding the funding they need to cover the rising costs of tuition, and a lender that doesn’t penalize you for the necessity to borrow more is going to be invaluable.
Rewards for Good Grades
Next, Discover will actually give you cash back on your loan if you maintain at least a 3.0 GPA. When you log in to Discover’s student loans website and submit the information about your grades, you’ll receive a 1% cash-back reward that you can put toward paying off your loan, buying supplies, or anything you want.
Discounts for Automatic Payments
Can you remember to keep enough money in your account every month to support automatic payments on your loan? If you can, you’ll be eligible to receive a 0.25% discount on your interest each month. This could decrease your monthly payment and/or the number of payments you need to make to pay your loan off entirely.
However, be warned if you are selecting this service. If you receive three payment returns due to insufficient funds in your account, automatic payments will be canceled. You will lose your discount, and you’ll be in charge of ensuring that payments are made on time and in full each month. If you can’t do this, you’ll go into default, and your loan will go to a collections agency.
Interest Rate Options
You can also choose between a fixed rate and a variable interest rate loan. Variable rate loans tend to have lower initial interest rates, but they can change yearly, depending on the market. Fixed rate loans will have slightly higher ranges of rates, but you’ll be guaranteed not to get any surprises from one year to another.
Discover proudly states that they do not charge any fees on their student loans. You won’t be charged to apply. There are no origination fees. And, most interesting of all, there are no late fees, either. While you do not want to make a habit of being late on your student loans, it’s comforting to know that you won’t be charged an astronomical fee for being a day or two late with your payment.
Fast and Easy Application Process
And, with all of that, you can apply online in 15 minutes or less. It’s easy to add a cosigner if you want, and you’ll know if you’re approved and what your interest rate will be in very little time. In today’s fast-paced world, that’s a huge benefit. You won’t have to wait when you’re trying to figure out how you’re going to afford the best (and possibly biggest) investment of your life.
Great Customer Care and Support
From their FAQ to their online, telephone, and in-person customer support, you can always find answers for all of your questions about Discover student loans. Some customers have likened the customer service from Discover to that of credit unions, which are known for really giving their members the royal treatment. Plus, they have a lot of great resources available through their website on managing debt and how to use credit wisely to get a better credit score.
But You Can’t Consolidate Your Loans
With all of those advantages, Discover student loans does have one big disadvantage. You cannot consolidate your Discover student loan(s) with other loans. Consolidation allows you to put all of your loans in one place and make a single payment each month with a single interest rate. Most of the really competitive and high-quality private lenders out there offer this as a standard service, but it’s not available for Discover student loans.
Overall, in our opinion, the pros outweigh the cons. There’s only one actual disadvantage to Discover student loans, and it can be taken care of by setting an alarm on your phone’s calendar to remind you to pay your student loans each month. The advantages, on the other hand, are far-reaching and really beneficial.
Compare and Apply for Student Loans TuitionChart.com
TuitionChart.com works hand-in-hand with the best, most trusted names in private student lending to help students and their families find the money they need for college. Through use of comparison tools and loan searches, TuitionChart provides over 20 different loan options for students. TuitionChart.com is designed to help students and their families wend their way through the maze of financial aid information.