Offering borrowers a wide range of services, Discover is a versatile student loan refinancing company located in Riverwoods, Illinois. Founded in 1985, services offered at Discover include student loans, personal loans, home loans, debt and transaction services, and others. They offer an option for a cosigner, charge interest rates based off of credit history, and have options to choose both variable and fixed interest rates. Discover does not charge any fees and offers private consolidation loans to customers.

The Good

Federal and Private Loan Consolidation

With Discover, borrowers have the option to refinance both federal and private student loans with their private consolidation service. Discover allows borrowers opportunities to lower their interest rates and monthly payments, combine all loans into a manageable monthly payment, and use a cosigner, if needed. To be able to get a loan, the minimum loan amount is $5000, with payments due within 30-45 days of loan disbursal and completion of consolidation.  


There is no mystery with Discover. All the information a potential borrower needs is listed directly on the website. They also have a “Frequently Asked Questions” section that provides great information to potential borrowers. 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 earned, and more.

Variety of Deferment Options

There are many payment deferment options at Discover. Borrowers who decide to go back to school part-time, military members who are active duty, those who work in public service for eligible organizations, and health professionals in residency programs 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.

Never Pay a Fee

When it comes to not charging fees, Discover is excellent. Discover charges no application, prepayment, origination, annual, or late fees.

The Bad

Lengthy Approval Process

Being approved by Discover can be a relatively lengthy process, taking approximately 30-45 days to process after submission of an application. During this time period, Discover checks specific criteria, such as credit history.  

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 qualified educational expenses.
  • Loans taken when not enrolled in school at least part-time

Unclear State Specific Loan Policy

Discover’s website states verbatim that people from all 50 states can qualify their student loan consolidation program. However, there is no information regarding state-specific private consolidation loans.

Unclear Repayment Terms

Despite transparency in other aspects of their debt consolidation program, there is no information on specific rate ranges for each of the repayment terms listed on their website

Discover Student Loan Customers Only

To be eligible for their private consolidation program, borrowers must be Discover student loan customers.

The Bottom Line

For those that meet Discover’s eligibility requirements, they are a great choice for student loan consolidation services. They are well-established in the industry with over 30 years experience. They allow both variable and fixed interest rate options, work with both federal and private student loans, have absolutely no fees, have a minimum loan amount of $5,000, are transparent, and have the most important program info directly on their website. Despite their benefits, eligibility requirements can deter potential borrowers. To qualify, users must be a Discover member and be at least 18 years of age. Additionally, although they allow cosigners, there is no release option and cosigners are required to stay on the loan for its entire duration.