When it comes to seeking higher education, one of the major barriers for students and their families is money. The escalating cost of tuition, books, and living expenses sometimes forces students to seek financial assistance.
Discover student loans have evolved as a viable choice for many prospective students looking to bridge the gap between their educational goals and financial realities. In this post, we’ll look at the perks and features of Discover student loans, as well as how they might help you achieve your educational goals.
Understanding Discover Student Loans
Discover Financial Services, a well-known name in the financial industry, offers a range of financial products, including credit cards, personal loans, and student loans. Discover student loans are designed to help students cover the costs of their education, whether for undergraduate or graduate studies. These loans provide an alternative to federal student loans, with their unique set of features and benefits.
Features and Benefits
- Competitive Interest Rates: Discover student loans often come with competitive interest rates, making them an attractive option for borrowers seeking affordable financing. The specific rate offered to a borrower depends on various factors, such as creditworthiness and repayment terms.
- No Loan Application Fees: One of the advantages of Discover student loans is that they do not charge any application fees. This means that students can explore their options without incurring any upfront costs.
- Rewards for Good Grades: Discover encourages academic excellence by offering cash rewards for good grades. Borrowers who maintain a certain GPA may be eligible for these rewards, providing an extra incentive to excel in their studies.
- Wide Range of Loan Types: Discover provides a variety of loan types to cater to different educational needs. Whether students need loans for undergraduate studies, graduate studies, or professional courses, Discover offers solutions tailored to their requirements.
- Flexible Repayment Options: Discover understands that every borrower’s financial situation is unique. As such, they offer flexible repayment options, allowing students to choose the plan that best fits their budget and future financial prospects.
The Application Process
Applying for Discover student loans is a straightforward process. Students can apply online through the Discover website, where they will need to provide essential information, such as personal details, school information, and financial information. Discover will then evaluate the application and determine the loan eligibility and interest rate based on the provided information.
Tips for Responsible Borrowing
While Discover student loans can be an invaluable tool for financing education, responsible borrowing is crucial to avoid excessive debt. Here are some tips for students considering taking out loans:
- Borrow Only What You Need: Before accepting a loan offer, carefully assess your educational expenses and borrow only what is necessary to cover those costs. Avoid taking out loans for non-essential expenses.
- Explore Scholarships and Grants: Seek out scholarships and grants, as they do not require repayment. These awards can significantly reduce your reliance on loans to fund your education.
- Understand Loan Terms: Take the time to understand the terms and conditions of your loan, including interest rates, repayment options, and grace periods. Being aware of these details will help you plan your finances better.
- Budget Wisely: Create a budget to manage your finances effectively during your academic journey. Stick to your budget and avoid unnecessary expenses that could lead to additional debt.
How to Apply for a Student Loan Through Discover
Borrowers interested in applying for a Discover student loan can do so by either visiting their website and clicking “Apply” or by calling the number at the top of the screen. To complete the application, you will need:
- Your Social Security Number
- Information about the school you will be attending, including your field of study and your academic period of enrollment
- The amount that you need to borrow
- A list of any other financial aid you will receive
- Financial information, including about our monthly rent or mortgage payment and any source of income
- Your permanent address, your school address, and contact information
Discover Student Loans Application Process and Requirements
1. Determine How Much To Borrow
The first step to applying for a Discover student loan is deciding how much you need to borrow. Discover allows you to borrow up to 100% of the cost of attendance (aggregate loan limits apply).
If you are applying for a consolidation loan, you can borrow a maximum of $150,000, although higher limits might apply for specific fields of study.
Maxing out your federal student aid, as well as taking advantage of any available grants and scholarships, should be done first before turning to Discover student loans.
Your financial aid package from your school will let you know how much financial aid has been allocated to you so you’ll know how much you need to borrow from Discover.
It is usually best to avoid borrowing more than you need. You will have to pay your Discover student loans back with interest; the more you borrow, the higher your payments will be after graduation.
2. Determine Whether You Will Need a Cosigner
According to Discover, students who do not have an established credit history will need a cosigner to be approved for a loan. This requirement is common among undergraduate (and some graduate and professional) students who do not have much of credit history.
Discover does not specify what credit score you would need to qualify on your own but instead indicates that application decisions are based on multiple factors.
Cosigning a loan has serious consequences; your cosigner is responsible for the loan until you have repaid it. You need to understand the risk you are asking the cosigner to take, and the cosigner needs to think carefully about how it impacts their financial situation and all this can take time.
If your co-signer is not ready to give you their information at the time you apply for Discover student loans, cosigners can also visit the Discover student loan website on their own to complete an application you have already started. Students will need to provide their cosigner with a cosigner key.
3. Choose the Type of Discovery Student Loan You Need
Discover offers loans for different types of situations, so the first step in the formal application process is selecting the right loan for you.
Visit www.discover.com/student-loans and click on the tile describing the loan type for the academic program you will be completing, which could include an undergraduate program, a graduate program, an MBA, or another specialized program.
Clicking on your desired loan type will take you to a page that provides details on interest rates, fees, rewards, and frequently asked questions.
At the top of each loan page, there is a button that says “Apply Now.” Click it to fill out your application for Discover loans for students.
4. Get Your Documents Ready
Discover explains that the online application process takes only 15 minutes or less. However, you’ll need certain information to complete your application. To apply for Discover student loans, you will need:
➢ Your social security number.
➢ Your permanent address.
➢ Your temporary or in-school address.
➢ Information about the school you will be attending.
➢ Information about your field of study.
➢ Details about the academic period you are enrolling in.
➢ Information about your income.
➢ Details about your monthly mortgage or rent payments.
If you have a cosigner, you’ll also need information about your cosigner, including their:
➢ Social Security number.
➢ Employment information.
➢ Financial information, including monthly mortgage and rent payments.
➢ Permanent address.
Also, you can save your application and return it later if you do not have all of your documentation, it is helpful to gather your paperwork before you begin the process.
Begin the Application Process
After you have clicked the “Apply Now” button, the next screen allows you to select whether you are a student or a cosigner and whether you want to start a new application or complete an existing one.
Select the appropriate option. If you are coming back to complete an existing application, you’ll need to input your access code, last name, date of birth, and the last four digits of your Social Security number.
Complete the Application Process
Discover will walk you through the process of how to apply for a student loan using their online system. The process starts with inputting information about your school, such as the state your school is in, selecting your school’s name from a pull-down menu, and the loan type. You will also need to add:
➢ Your full name and date of birth
➢ Your email address
➢ A phone number
➢ Information about your citizenship status
➢ Your Social Security number
After adding this information, click “Continue.” On the next page, you will need to provide additional details, including financial information.
You will also need to select whether you are applying for a fixed-rate loan, which means the loan rate and payment will not change for the life of the loan, or a variable-rate loan, which means interest and payments can fluctuate.
If you have a cosigner, your cosigner will need to be with you to complete their part of the application or your cosigner will need to return to the website using the cosigner key you provide to finish the application.
Discover will check your credit, and the credit of your cosigner (if applicable), to determine if you can qualify for a student loan.
Submit supporting documents
Discover might notify you through email that you need to submit additional documents. There are four options to submit those documents:
➢ Uploading your documents.
➢ Sending your documents via mail to Discover Student Loans, Customer Service, P.O. Box 30947, Salt Lake City, U84130-0947.
➢ Sending your documents via special delivery such as FedEx or UPS to Discover Student Loans, Customer Service, 5420 W 1730 S, Salt Lake City, UT 84104.
➢ Faxing your documents to 1-801-996-2454.
Check the Application Status
After applying for a student loan, you can visit Discover’s application page at www.discoverstudentloans.com to check the status of your application at any time using your access code. Just choose the “Existing Application” option on the main application page.
Sign Your Document
If you are approved for Discover student loans, you will need to sign a promissory note. You can log in to your application to read and e-sign the documents directly from Discover’s website.
After your documents have been signed, your loans will be released to the school you are attending according to the payment date your school has set.
How to Contact Discover
If you would like to contact Discover to discuss their student loan offerings, you can do so through any of the means below. Student loan Specialists are available 24/7.
Discover Student Loans Phone
1-800-STUDENT (1-800-788-3368)
Discover Student Loans Fax
1-224-813-5195
Discover Student Loans Email
If you are an existing Discover borrower, you can send Discover a secure email by logging into your Discover account. If you are not an existing customer, then you cannot communicate by email.
Discover Student Loans Address
Payments
Discover Student Loans
PO Box 6107
Carol Stream, IL 60197-6107
Application Documents
Discover Student Loans
Customer Service
PO Box 30947
Salt Lake City, UT 84130-0947
General Correspondence
Customer Service
PO Box 30948
Salt Lake City, UT 84130-0948
Discover Student Loans FAQ
What credit score is needed for a Discover student loan?
Is it possible to consolidate student loans with Discover?
Can you pay off Discover student loans early?
Can Discover loans be forgiven?
Discover student loans have proven to be a valuable resource for countless students pursuing their educational dreams. With competitive interest rates, flexible repayment options, and rewards for academic achievement, these loans offer a pathway to access higher education without breaking the bank.
However, responsible borrowing and a clear understanding of loan terms are essential to ensure that these loans remain a stepping stone toward a brighter future rather than a burden. As with any financial decision, students should thoroughly research and consider their options before choosing the best fit for their educational goals and financial circumstances.