Discover Student Loan Refinancing
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|
|Good for:||Flexible payments|
- Flexible repayment options available for struggling borrowers
- Graduation/degree not required
- 0.25% autopay discount
- No application, origination, or late fees
- Regular repayment terms of only 10 or 20 years
- No prequalification available
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.Get my rate
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.
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.
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
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.Get my rate
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 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.
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.
Discover Financial Services
P.O. Box 30943
Salt Lake City, UT 84130-0943