Discover student loans review: Low-fee lender with a cash bonus for good grades

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Pros and cons

Discover undergraduate student loans

You may like Discover Undergraduate Student Loans undergraduate student loans if you want to avoid fees, as the lender doesn't have any prepayment penalties, origination fees, or late charges. However, you may be able to find lower fixed rates with competitors.

You might be eligible for Discover's one-time 1% cash reward on its student loans if you get a GPA of 3.0 or higher for any academic term covered by the loan. You'll need to redeem your reward within six months after the loan's disbursement or six months after the academic term has ended, whichever is later.  

Discover graduate student loans

Discover Graduate Student Loans graduate student loans function similarly to the lender's undergraduate loans. The major difference between the two is the repayment term length; the graduate loans are for 20 years, while the undergraduate loans are for 15 years. You'll still get a loan with no fees and will be eligible for Discover's one-time 1% cash reward on its student loans.

How Discover student loans work

Discover Undergraduate Student Loans offers student loans for a variety of different types of degrees, including undergraduate, graduate, law school, MBAs, and health professions. 

To qualify for a loan, you must meet the following qualifications:

• Be enrolled at least half-time in a program (undergraduate, graduate, law school, MBA, health program) at an eligible school
• Be pursuing a degree
• Be making adequate academic progress as determined by your school
• Be a US citizen, permanent resident, or international student (international students need to have a cosigner who is a US citizen or permanent resident)
• Be 16 years or older when you apply
• Pass a credit check

Before applying for any private student loan, including with Discover, make sure to consider your federal student loan options, as you can often find more favorable terms and better protections through the government.

To contact customer support, call the lender 24 hours a day, seven days a week. The company has both a US number and an international number. If calling isn't the best work for you, you can also send mail to Discover's Utah address. 

Discover Undergraduate Student Loans has a well-reviewed app that has received 4.8 out of 5 stars on the Apple store and 4.6 out of  5 stars on the Google Play store. If you want to manage your loan on the go, this could be helpful. 

Is Discover trustworthy?

The Better Business Bureau has rated Discover Undergraduate Student Loans as an A+ in trustworthiness. A great BBB rating indicates the company is honest in how it handles business, responds effectively to consumer complaints, and is truthful in its advertising.

However, you won't necessarily have a positive relationship with Discover simply because the company has a top-notch BBB rating. Ask friends and family about their experiences with the lender and read customer reviews online.

Discover does not have any recent scandals. You may feel comfortable choosing Discover as your student loan lender because of its clean history and great BBB rating.

How Discover compares

Discover Undergraduate Student Loans rates are similar to or higher than those offered by comparable lenders — though rates will depend on your creditworthiness and other financial factors. Here's how Discover compares to the competition:

Image may be NSFW. Clik here to view.	Image may be NSFW. Clik here to view.	Image may be NSFW. Clik here to view.
Min. credit score Unspecified	Min. credit score Unspecified	Min. credit score 540
APR Discover Undergraduate Student Loans	APR College Ave Undergraduate Student Loans	APR Ascent Undergraduate Student Loans
Origination fee? No	Origination fee? No	Origination fee? No
Discover Undergraduate Student Loans	Student Loans	Student Loans

Discover review vs. College Ave review

You can get a lower minimum APR on your loan with College Ave than with Discover, so if your credit is in good shape, College Ave might be the better choice. 

College Ave has a quicker application process than Discover, as you can get a rate in a few minutes with College Ave, and it will take roughly 15 minutes with Discover. This may not be a dealbreaker, but if you want to speedily compare multiple rates, College Ave could be a better place to start. 

Discover offers a unique perk that College Ave does not. Discover has a one-time 1% cash reward on its student loans if you achieve a GPA of 3.0 or higher during any academic term covered by the loan. You have to redeem your reward within six months after your loan is disbursed or six months after your academic term is over, whichever is later.  

You won't pay any origination fees, prepayment penalties, or late fees with either company.

Discover review vs. Ascent review

Discover has a better APR range on graduate loans than Ascent. The minimum rate is about 1% lower with Discover than with Ascent, though the maximum rate is nearly the same. Ascent has a better range on undergraduate loans with a minimum rate roughly .75% lower than with Discover. The maximum rate with both companies is about the same.

Ascent has five repayment terms available with co-signed loans, five, seven, 10, 12, or 15 years. Discover has only one standard term available, 15 years. 

You may be eligible for a 1% cash reward with Ascent and Discover. Neither company charges origination fees or prepayment penalties, but Ascent may charge a late fee while Discover does not. 

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