The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable margin percentage. Discover Student Loans may adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the "interest rate change date"), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). Discover offers a wider range of repayment assistance programs compared with other student loan refinance lenders, including the option to temporarily reduce payments. It was renamed Dean Witter, Discover & Co. and became an independent, publicly-traded company. Discover card interest rates for students and people with bad credit are a bit different. Can transfer a parent loan to the child: No. The student Discover card starts at 0% intro APR † †† for 6 months on purchases. Grace period extension: Discover offers an Early Repayment Assistance Program that can extend your grace period. In addition to interest rates, compare lenders’ repayment options and the flexibility they offer borrowers who are struggling to make payments. Depending on the reason, you may want to consider other lenders or need a co-signer. Receive one year of Amazon Prime Student on Deserve after spending $500 in the first three billing … We noticed that you're using an old version of your internet browser to access this page. The Annual Percentage Rate (APR) takes into account the interest rate, fees (if any), length of your deferment period and how interest capitalizes. In addition to interest rates, look at lenders’ repayment alternatives and the flexibility they offer to borrowers who struggle to make payments. Reward for good grades: Discover offers a Rewards for Good Grades benefit, which is a 1% cash reward if you earn a 3.0 GPA or higher. But student credit cards will typically charge interest rates that jump into the mid-20% range. 5.0. It will be based on your credit history, which repayment option you choose and other factors, including your cosigner's credit history (if applicable). Property and Casualty insurance services offered through NerdWallet Insurance Services, Inc.: Licenses, NerdWallet Compare, Inc. NMLS ID# 1617539, NMLS Consumer AccessLicenses and Disclosures, California: California Finance Lender loans arranged pursuant to Department of Financial Protection and Innovation Finance Lenders License #60DBO-74812. ©2020 Discover Bank, Member FDIC | Lender ID 831312, A fixed interest rate is set at the time of application and does not change during the life of the loan. Depending on the reason, you may want to consider other lenders or, if you haven’t already, try applying with a co-signer. Interest rates on its loans can be either fixed or variable. To see what rate Discover will offer you, apply on its website. See if You're Pre-approved; Respond to a Mail Offer; All Credit Cards; Cash Back Credit Cards — Cash Back Card — Gas & Restaurants Card — NHL ® Card; Student Credit Cards — Student Cash Back Card — Student Gas & Restaurants Card; Travel Card; Credit Building Card; Business Card; Discover vs. Our lowest APR is only available to customers with the best credit and other factors. 12.99% - 21.99% Variable APR. The other terms, benefits, and rewards are the exact same. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable margin percentage. Generous repayment flexibility for struggling borrowers. It can take two weeks for approval because of the required paperwork and waiting times. The daily balance multiplied by the daily interest rate equals the daily interest charge. . If you are currently paying 18 percent on your … If Discover denies your refinance application, the lender will let you know why. Discover offers a wider range of repayment assistance programs compared with other student loan lenders, including the option to temporarily reduce payments. The average purchase card is interest-free for about 10.88 months. All financial products, shopping products and services are presented without warranty. Best for borrowers who may need wiggle room on payments, or those who didn't graduate. NerdWallet's ratings are determined by our editorial team. The Discover it® Student chrome charges 0% intro APR on Purchases for 6 months and 10.99% intro APR on … Learn more about interest rates. Our lowest APR is only available to customers with the best credit and other factors. This may cause the monthly payments to increase, the number of payments to increase or both. With 60% of student credit cards, you can earn at least two points per dollar or 2% cash back on bonus categories. When evaluating offers, please review the financial institution’s Terms and Conditions. So how do we make money? This may cause the monthly payments to increase, the number of payments to increase or both. Refinancing student loans through Discover is a good option for financially strong borrowers who may need wiggle room in the future. Fixed: Make fixed, $25 payments while you’re in school and during your grace period. Discover is a digital bank and payment services company known for its credit cards. NerdWallet does not receive compensation for its reviews. The Discover it for Students provides 5% cash back in categories that rotate every three months, up to $1,500 spent per quarter, then 1% (activation required). Last reviewed: October 20, 2020. Disclaimer: NerdWallet strives to keep its information accurate and up to date. All of those rates, or APRs, are variable. Discover doesn’t disclose specific details about what it takes to qualify for its student loans, but there’s a good chance you’ll qualify if you have good credit or apply with a co-signer who does. When evaluating offers, please review the financial institution’s Terms and Conditions. Only 10- and 20-year repayment terms available. Forbearance: Postpone payments for up to 12 months if you're experiencing unemployment, economic hardship, an excessive student loan burden or a medical disability. A co-signer is not required for approval, but you must meet eligibility requirements based on your credit score income and other factors. Pre-qualified offers are not binding. The scoring formula for student loan products takes into account more than 50 data points across multiple categories, including repayment options, customer service, lender transparency, loan eligibility and underwriting criteria. That's why NerdWallet’s student loan ratings reward lenders that offer a variety of loan terms, limit their fees and penalties, and extend borrowers multiple options to avoid default. The daily interest rate is simply the rate charged for that transaction category, divided by 365. This information may be different than what you see when you visit a financial institution, service provider or specific product’s site. Interest rates for private student loans are credit based. For variable interest rate loans, the 3-Month LIBOR is 0.250% as of October 1, 2020. Must have attended a school authorized to receive federal aid: Yes. Military deferment: Postpone payments if you're on active military duty. The fixed interest rate is set at the time of application and does not change during the life of the loan. Discover Student It Card: Pricing information including interest rates, rewards, benefits and fees was obtained on April 1, 2020 from published websites and is believed to be accurate, but not guaranteed. Temporary interest rate reduction: Get a lower interest rate, resulting in a lower monthly payment, for up to 12 months. And there's no annual fee. Types of schools served: Must attend a school authorized to receive federal aid. 1.87 - 5.87%Lowest APRs shown for Discover Student Loans are available for the most creditworthy applicants for the Discover Private Consolidation Loan and include a 0.25% interest rate reduction while enrolled in automatic payments. Average time from application to approval: Students can apply in 15 minutes or less. Students with better credit or students applying with a creditworthy cosigner may receive a better interest rate. Contact Discover Step 1 Be prepared to have an interest rate in mind when contacting Discover Card. Discover could improve its student loan refinance product by: Conducting soft credit checks to give personalized rate estimates. The card is FREE (no annual fee), billing is accurate, and their attention to online and PoP purchases is exemplary. However, this does not influence our evaluations. Incoming freshmen may qualify for an additional cash reward based on their high school grades (incremental to the existing cash reward). If you don’t have access to a co-signer — or still aren’t eligible with one — consider, NerdWallet believes the best student loan is one you can repay at the lowest interest rate you can get. Borrowers cannot receive 12 months of forbearance consecutively. Discover Student Loans may adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the "interest rate change date"), based on the … This may cause the monthly payments to increase, the number of payments to increase or both. The best offer was from Discover, which gave me 0% APR for 12 months on purchases. For variable interest rate loans, the 3-Month LIBOR is 0.250% as of October 1, 2020. Discover Student Loans may adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the “interest rate change date”), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125). This may cause the monthly payments to increase, the number of payments to increase or both. When evaluating student loan options, there are lots of factors to consider. That includes the excellent Cashback Match offer. Read our editorial guidelines. The Discover it Student Cash Back card offers a reasonable APR of 12.99%-21.99% variable. It will be based on your credit history, which repayment option you choose and other factors, including your cosigner's credit history (if applicable). For example, if your principal loan balance is $10,000 and your interest rate is 10% (no payments are due and you make no payments), then your loan will accrue $1,000 (= $10,000 x 0.10) in interest in one year. … before you apply. Allows greater-than-minimum payments via autopay: Yes. The interest rate ranges represent the lowest and highest interest rates offered on Discover student loans, including Undergraduate Loans. Our lowest APR is only available to customers with the best credit and other factors. All variable rates are based on a 1-month LIBOR assumption of 0.16% effective Sep 1, 2020 and may increase after consummation. Maximum: Your total cost of attendance, minus other financial aid. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable margin percentage. Lowest APRs shown for Discover Student Loans are available for the most creditworthy applicants for undergraduate loans and include a 0.25% interest rate reduction while enrolled in automatic payments. Discover Student Loans have zero fees, and no interest capitalization during the deferment period - as a result, the deferment period APR will be less than the interest rate. Learn more about Discover Student Loans interest rates at DiscoverStudentLoans.com/Rates. The Discover it® Student Cash Back card is one of two Discover student credit cards available right now, and it offers the highest cash back rate among them, at up to 5% back on certain purchases. The Discover it Student … Use these ratings as a guide, but we encourage you to shop around for the lowest interest rate you can qualify for. Lowest APRs shown for Discover Student Loans are available for the most creditworthy applicants for the Discover Private Consolidation Loan and include a 0.25% interest rate reduction while enrolled in automatic payments. Points are also awarded for soft credit checks, underwriting transparency and other consumer-friendly features. Loan amounts: $5,000 to $150,000. Discover's private student loans are a good option for borrowers who want flexible repayment options in case they need wiggle room in the future. All Annual Percentage Rates (APRs) displayed assume borrowers enroll in auto pay and account for the 0.25% reduction in interest rate. Built for students. Discover Bank has been operating for more than 100 years, and since 2010, it has offered private student loans to students attending more than 2,400 colleges and universities. Your APR will be determined after you apply. NerdWallet recommends prequalifying with multiple refinance lenders before you apply. Learn more about Discover Student Loans interest rates at, Before applying for a Discover student loan, Compare your private student loan options. Can qualify if you’ve filed for bankruptcy: Yes; you’re more likely to qualify if the bankruptcy isn’t recent. APR: Most student credit cards have a minimum APR of 18% or lower, but 20% have a minimum APR higher than 25%. Plus this card offers competitive rewards, and Discover enjoys … Points are also awarded for soft credit checks, underwriting transparency and other consumer-friendly features. No-credit student credit cards also charge interest at a 15.02% annual rate, on average – below the market-wide average of 17.98%, according to WalletHub’s latest Credit Card Landscape Report. Credit Cards. Providing a greater number of repayment schedules. More flexible repayment options for struggling borrowers than other lenders. See Rates & Fees. Earn cash back rewards for college and beyond while practicing responsible credit habits with this Discover it ® card for students. Typical income of approved borrowers: Did not disclose. Citizenship: Must be a U.S. citizen or permanent resident. Students looking for cash back rewards might find that this card makes the grade. Compare Discover's range of interest rates with other private student loan lenders. The bottom line: Discover Bank, known primarily for its credit cards business, launched Discover Student Loans in 2007. The Interest Rate will change when the 3-Month LIBOR changes. The low-end APR on this card is quite impressive considering our weekly rate report lists the average student card APR as hovering around 18%. Discover could improve its private student loans by: Loan amounts: $1,000 minimum. You can earn 5% cash back on rotating bonus categories on up … If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. Rewards: All but one of the student cards surveyed earn rewards, but earning rates vary. Medical residency deferment: Postpone payments during your medical residency. It will be based on your credit history, which repayment option you choose and other factors, including your cosigner's credit history (if applicable). But Discover also offers other products including fixed-rate personal loans of up to $35,000 to borrowers in all 50 states. Our knowledgeable Student Loan Specialists are ready to help you anytime 24/7. Many lenders are offering relief related to COVID-19. Citizenship: Must be a U.S. citizen or permanent resident. International students are eligible if they apply with a co-signer who is a U.S. citizen or permanent resident. Offered terms are subject to change and state law restriction. The fixed interest rate is set at the time of application and does not change during the life of the loan. You'll be unable to log in to Discover.com in the future if your browser has not been updated. College students. This may cause the monthly payments to increase, the number of payments to increase or both. Does American Express offer student loans? Learn more about Discover Student Loans interest rates at, Before deciding on a student loan refinance lender, compare multiple. If you are approved for a loan, the interest rate offered will depend on your credit profile, your application, the loan term selected and will be within the ranges of rates shown. No Credit History. This will let you know which lenders you may be eligible with, without affecting your credit. Read our. And you’ll get 1% cash back on every other purchase. Discover has a 4.5 rating out of a possible score of 5 from NerdWallet for its refinancing and private student loan products. The lender boasts no fees as long as you pay on time. If your application was submitted prior to June 1, 2014, your interest rate is based on the Prime Index. It will be based on your credit history, which repayment option you choose and other factors, including your cosigner’s credit history (if applicable). Discover also considers other factors, such as area of study and potential income. Every credit card company has a different set of prerequisites an applicant must meet to be considered a student. You'll get a 0.35% interest rate discount for choosing this option. Our lowest APR is only available to customers with the best credit and other factors. Typical credit score of approved borrowers or co-signers: 750+. When autocomplete results are available use up and down arrows to review and enter to select. Discover it® Student chrome. If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly. » MORE: Does American Express offer student loans? Maximum debt-to-income ratio: Did not disclose. International students can qualify with a co-signer. The loan must be fewer than 60 days late to qualify. Learn more in the Discover Help Center. Higher limits may apply to some fields of study. It will be based on your credit history, which repayment option you choose and other factors, including your cosigner's credit history (if applicable). The typical time from completed application to approval for a Discover student loan is 15 minutes. The loan must be less than 60 days late to qualify. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable margin percentage. The fixed interest rate is set at the time of application and does not change during the life of the loan. You don’t need spectacular credit standing to get approved for the Discover it Student chrome credit card. Many or all of the products featured here are from our partners who compensate us. Compare Discover’s range of interest rates with other student loan refinance lenders. The variable interest rate is calculated based on the 3-Month LIBOR index plus the applicable margin percentage. In March of 1993, Dean Witter Financial Services Group Inc. spun off from Sears. For variable interest rate loans, the 3-Month LIBOR is 0.250% as of October 1, 2020. Its refinancing loan is best for borrowers who may need wiggle room on payments, or those who didn’t graduate. Compare your private student loan options to make sure you’re getting the best rate you qualify for. The Discover card is a great card for students as it offers low rates and fees, including a no-penalty interest rate and an automatic waiver of your first late payment fee. Read more. And the Discover Secured Card’s interest rate is 24.74%. It will be based on your credit history, which repayment option you choose and other factors, including your cosigner’s credit history (if applicable). Before deciding on a student loan refinance lender, compare multiple student loan refinance options to make sure you’re getting the best rate you qualify for. Many lenders are offering relief related to COVID-19. Anna Helhoski is a writer and NerdWallet's authority on student loans. That's why NerdWallet’s student loan ratings reward lenders that offer a variety of loan terms, limit their fees and penalties, and extend borrowers multiple options to avoid default. Loans are offered by CommonBond Lending, LLC (NMLS # 1175900), NMLS Consumer Access. If the 3-month LIBOR is temporarily unavailable and not published fifteen days prior to the interest rate change date, then we will use the immediately preceding published 3-month LIBOR Index rate. 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