Discover is a versatile student loan refinancing company that is located in Riverwoods, Illinois, and provide an array of financial services. They were founded back in 1985, making them one of the most experienced companies in this industry, and some of the services offered include student loans, personal loans, home loans, debt and transaction services, and others.
Discover Student Loans are organized by the Discover bank, the same guys behind those reward cards that we love so much on this site. They are one of the biggest and most respected companies we have reviewed, up there alongside the likes of Wells Fargo and even the official government loan provider.
Discover Student Loans are all about student loans, with options for refinancing also available. They do not have the best rates we have encountered, but they have some impressive benefits and many of reasons why you would want to sign-up for their services.
Discover have an option for a cosigner, for instance, and they charge interest rates based off of credit history. They also do not charge any hidden fees. But despite all of these benefits, the rates charged by Discover Student Loans maybe off-putting to some.
These rates range from 4.87% right on through to 8.24%. The exact rate you get will depend on a number of factors, not least of which is whether you opt for a fixed rate loan or a variable rate loan. The term will also play a part and Discover Student Loans offer loans for 10 or 20 years. In many ways they fall short of providers like U-Fi Student Loans, who are also backed by a big multinational company, but they still have a lot to offer.
Discover hire thousands of employees across the United States. The vast majority of these are not working for Discover Student Loans, but the benefits they receive are similar and the company is the same. This is important when you consider that Discover have been ranked as one of the best employers in the United States, an honor that they have held for a number of years.
They pay well, they have good benefits and they facilitate a good working environment. This creates an optimum workplace, which in turn improves customer experience.
Discover Student Loans generate a lot of positive reviews. This is a company that always manages to do right by its members, a company that is always looking to go the extra mile, and this is why they have reigned supreme for a number of years. It's the reason why their credit cards and other services have been able to compete in a saturated industry that is dominated by big players like Visa and MasterCard.
Our Discover Review
A company that has been around for more than 3 decades must be doing something right. You may not always agree with the way they operate, but it's fair to say that you can't exist for this long without pleasing a few million customers. In our Discover review we will look at their services in more detail to see what it is that sets them apart.
Federal and Private Loan Consolidation
Customers of Discover Student Loans have the option to refinance both federal and private student loans. They also give borrowers a chance to reduce their interest rates and monthly payments, combine all loans into a manageable monthly payment. They can also use a cosigner, if needed.
The minimum loan amount is $5,000, with payments due within 30-45 days of loan disbursal and completion of consolidation. Their terms are 10 or 20 years, and there are some other favorable aspects as well.
There are no hidden fees with Discover, and there isn't any hidden information either. All the information a potential borrower needs is listed directly on their website.
They also have a “Frequently Asked Questions” section that provides all the info a borrower could need when deciding if Discover Student Loans are a good fit for them.. Their mobile app, which is compatible with both Android and IOS, is great for allowing borrowers to have control over their loans. All information is present on the app, showing account activity, reward points, and much more.
Variety of Deferment Options
There are many payment deferment options at Discover. If a borrower decides to go back to school part-time, if they are military members on active duty, or if they work in the public sector or healthcare industry, they can qualify for deferment.
Social Media Presence
As an established, credible company, Discover has an active, up-to-date Facebook, LinkedIn, Twitter, and Youtube page, each having a high quantity of followers and each ready to respond to any comments that you make. This is something that is often overlooked by financial companies, so we have to praise Discover Student Loans for their efforts here.
Never Pay a Fee
Discover charges no application, prepayment, origination, annual, or late fees. There really are no hidden fees and no nasty surprises and it's rare that we get to say this about a company in this industry.
Lengthy Approval Process
Discover Student Loans require you to go through a relatively lengthy application process, taking up to 45 days to process in total. During this time, Discover checks specific criteria, such as credit history, and will highlight any issues that they find. It's necessary on their part and they are not alone in taking this long, but it can still be frustrating to deal with.
Limited Loan Type Eligibility
To be eligible for Discover’s private consolidation loan, certain criteria must be met. The following loans listed below are not eligible:
- K-12 education loans.
- Post graduate loans for things like bar exams and residency.
- Loans not used for educational expenses that meet certain criteria.
- Loans taken when not enrolled in school on at least a part-time basis.
Unclear State Specific Loan Policy
Discover openly claim that residents in all 50 states qualify for their student loan consolidation program. However, there is no information regarding state-specific private consolidation loans, and the ways in which these loans differ on a state by state basis.
Unclear Repayment Terms
Discover Student Loans are very transparent in many areas, but they lack key information regarding rate ranges for each of the repayment terms they list on their website.
Discover Student Loan Customers Only
To be eligible for their private consolidation program, borrowers must be Discover student loan customers. This is not a difficult process, but it's another hurdle that can prolong the process and frustrate applicants.
The Bottom Line
If you meed Discover’s eligibility requirements, they are a great choice when it comes to student loan consolidation services. They are well-established in the industry with over 30 years experience, and they have many great benefits that standout from the crowd.
They allow both variable and fixed interest rate options, work with both federal and private student loans, have no fees, have a minimum loan amount of $5,000 and are transparent in everything that they do. However, for all of their benefits, their eligibility requirements can be troublesome.
To qualify, users must be a Discover member and be at least 18 years of age. What's more, while they although they allow cosigners, there is no release option and cosigners are required to stay on the loan for its entire duration. All in all, there is a lot to like here, but they are by no means perfect and you may want to check with a number of other providers before signing on the dotted line.