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This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will be suitable for their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also review brands we are not engaged with). These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewer's finding and subjective experience and product popularity, impact the placement and position of the brands within the comparison table. In the event rating or scoring are assigned by us, they are based on the position in the comparison table, or according to other formula in the event specifically detailed by us. See our How we Rate page and Terms of Use for information. The reviews, rating and scoring are provided “as-is” without guaranties or warranties regarding the information contained in our website, which shall not be considered as endorsement. We make the best efforts to keep the information up-to-date, however, an offer’s terms might change at any time. We do not compare or include all service providers, brands and offers available in the market.

Discover Student Loan Refinancing

Jessica Cotzin Jessica Cotzin Last update:
Fixed APR
3.49-6.99%
Variable APR
1.87-5.87%
Min Credit Score
660

Discover is a financial services brand initially launched as a credit card by Sears in 1985. Since then, it has expanded to offer numerous credit cards, various types of loans, and bank accounts.

Among Discover’s many offerings is its private student loan refinancing. Refinancing your student loans can save you hundreds to thousands on interest and make your monthly payment easier to handle.

Should you refinance your student loans through Discover? Read our Discover student loan refinancing review below.

Discover Student Loan Refinance Overview

APR (fixed interest rate) 3.49%-6.99%
APR (variable interest rate) 1.87%-5.87%
Eligible loan types Federal and private student loans
Refinance amount The approved amount depends on financial profile, income, credit score, and degree (medical degrees will be approved for more)
Repayment terms 10 year and 20 year
Minimum credit score 660
Lender type Direct
Good for: Flexible payments
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Discover’s Pros

  • Flexible repayment options available for struggling borrowers
  • Graduation/degree not required
  • 0.25% autopay discount
  • No application, origination, or late fees

Discover’s Cons

  • Regular repayment terms of only 10 or 20 years
  • No prequalification available

Application Process

Discover lets you apply via phone 24/7, but more people apply online due to ease, so we’ll cover the online process.

First, you fill out the application with your basic information. You then choose whether you want a fixed or variable interest rate.

From there, you verify the loans you’d like to consolidate by logging in to your accounts from your current loan servicers.

Discover then runs a formal credit check (there’s no soft check available) to see if you qualify for a loan.

If so, Discover offers you your terms. You can then sign the loan documents and accept your loan.

Altogether, Discover says the application takes 15 minutes maximum.

Discover will then send your proceeds to each of your current lenders. This part takes 30-45 days — during which you must still make payments.

Once your lenders notify you they received your consolidation loan funds, Discover requires you to get a payoff statement from each one to prove your loan went through successfully.

Finally, you’ll begin repaying Discover.

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 Terms & Requirements

Discover generally has high requirements for any of its loans. However, student loan refinancing comes with flexible payment options for struggling borrowers.

Let’s look more closely at the terms below.

Loan Requirements

Here’s what Discover requires of you before you can get a loan.

  • US citizen or permanent resident with a US-based address in any state
  • Attended a school authorized to receive federal aid

Discover doesn’t require that you graduate or obtain a degree to refinance. Thus, Discover could be a good option for those who didn’t finish college for any reason.

Discover doesn’t disclose income or credit requirements. However, based on its other products, we can assume that good credit and a low debt-to-income ratio will help out quite a bit.

That said, you must have verifiable income and show a positive repayment history on your debts.

Loan Terms

Here are the student loan refinancing terms you can expect from Discover:

  • Fixed APR: 3.49%-6.99%
  • Variable APR: 1.87%-5.87%

Loan amount: $5,000-$150,000

Repayment Terms

Discover only offers repayment terms of 10 or 20 years, which is a bit limited compared to some competitors.

However, Discover also offers deferment if you go back to school and enroll at least half-time. You may also defer payments during the following situations:

  • Active military duty (up to 3 years)
  • Public service with specific eligible organizations (up to 3 years)
  • Health profession residency program (up to 5 years)

Lastly, Discover urges you to call them if you struggle to make payments on your consolidation/refinancing loan. It offers various programs such as reduced payments and forbearance to help you stay on track.

It’s worth noting that Discover charges no prepayment penalties. You can pay off your loan early worry-free to save on interest.

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 Privacy & Security

Over the decades, Discover has added to its offerings — causing it to focus on bolstering customer privacy and security.

For one, it uses SSL to encrypt your sensitive information online and in the Discover app. It password-protects everything on your account no matter how you access your account.

Discover also gives you enhanced account verification features, such as sending you a verification code when logging in from an unrecognized device. Check out Discover’s Privacy Policy for more information on what measures it takes to keep your data safe.

Customer Support

Discover is known for their top-notch customer service.

It has a US-based team of in-house customer service specialists available 24/7 to help you out. You can reach them by phone, email, and even fax and snail-mail. 

You can also check out the FAQs on Discover’s student loan consolidation page — not to mention Discover’s extensive self-help resources in its Help Center.

Final Thoughts

Discover would be a solid option for those in need of student loan refinancing — particularly if you didn’t finish your degree and/or you’re struggling to pay your student loans (which, unfortunately, may go hand-in-hand).

Just keep in mind that Discover neither publishes credit requirements nor offers soft credit checks, so it’s best to bring up your credit score and minimize other debts before applying for a Discover student loan refinancing loan.

Address

Discover Financial Services
P.O. Box 30943
Salt Lake City, UT 84130-0943

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Disclosure
This website is an informative comparison site that aims to offer its users find helpful information regarding the products and offers that will be suitable for their needs. We are able to maintain a free, high-quality service by receiving advertising fees from the brands and service providers we review on this website (though we may also review brands we are not engaged with). These advertising fees, combined with our criteria and methodology, such as the conversion rates, our team of reviewer's finding and subjective experience and product popularity, impact the placement and position of the brands within the comparison table. In the event rating or scoring are assigned by us, they are based on the position in the comparison table, or according to other formula in the event specifically detailed by us. See our How we Rate page and Terms of Use for information. The reviews, rating and scoring are provided “as-is” without guaranties or warranties regarding the information contained in our website, which shall not be considered as endorsement. We make the best efforts to keep the information up-to-date, however, an offer’s terms might change at any time. We do not compare or include all service providers, brands and offers available in the market.
Jessica Cotzin Jessica Cotzin
Jessica Cotzin is a writer and the Lendstart authority on small businesses and personal loans. She has been writing about personal finance and the loans industry for a number of years, and holds a bachelor’s degree in journalism from Florida Atlantic University.
This review is based on the writer's personal opinion.