Types of financial aid and college funding to consider before taking out student loans
Learn how to take advantage of different types of financial aid available, like scholarships and grants, to help pay for school before taking out student loans.
That means no application, origination, or late fees.
Get a 0.25% interest rate reduction while enrolled in automatic payments.
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Get a cash reward for your good grades on each new student loan.
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Choose from in-school or deferred repayment options, and there is never a penalty for prepayment.
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Start your application on a computer, smartphone or other device, or call us at 1-800-STUDENT.
Applying with a creditworthy cosigner can improve the likelihood for loan approval and may lower the interest rate.
Choose a fixed or variable interest rate, and select in-school or deferred repayment.
Sign your loan documents electronically and accept your loan terms.
Undergraduate Loan Features
To qualify, you must:
Figuring out how to pay for a college degree can be overwhelming. With our Multi-Year Option, we're able to pre-qualify eligible borrowers for student loans to help cover future academic periods.
When it's time to apply for another student loan, if eligible, you'll experience a hassle-free process and no impact on your credit.
Doing your homework has its rewards.
Undergraduate Loan Repayment
A repayment period is the period of time during which scheduled payments are required to be made to repay the principal balance and interest on a loan. Your repayment period is 15 years after the deferment period ends.
You can make payments anytime to help reduce the overall cost of your loan and there is never a penalty for prepaying. If you're not receiving monthly billing statements, we will send you quarterly statements showing you how much interest is accruing and how to make optional payments while you are in school.
The table below compares federal and private student loans for undergraduate students.
Federal
Direct Loans for Students
Federal
Direct PLUS Loans for Parents
Discover Undergraduate Loan |
Federal Direct Loans for Students |
Federal Direct PLUS Loans for Parents |
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Borrower |
Student (may require a cosigner) |
Student |
Parent of dependent undergraduate student (may require an endorser) |
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Lender | Discover Bank® | Government | Government | |||||||||||||||
Annual Loan Limits Loan amounts are certified and disbursed through the school. |
Cover up to 100% of school-certified college costs, minus other financial aid.* Aggregate loan limits apply. |
Includes subsidized and unsubsidized loans up to:
|
Up to 100% of your cost of attendance minus other financial aid.* |
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Interest Rate |
Fixed xxx - xxx APR Variable xxx - xxx APR (3-Month CME Term SOFR + xxx to 3-Month CME Term SOFR + xxx) Lowest APRs are available for the most creditworthy applicants, and include an interest-only repayment discount and Auto Debit Reward.1 |
Fixed 4.99% (for subsidized and unsubsidized loans with a first disbursement between July 1, 2022 and June 30, 2023). |
Fixed 7.54% (for loans with a first disbursement between July 1, 2022 and June 30, 2023). |
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Origination Fee | Zero |
1.057% of loan amount for subsidized and unsubsidized loans with a first disbursement made on or after October 1, 2022 and before October 1, 2023. |
4.228% of loan amount for loans with a first disbursement made on or after October 1, 2022 and before October 1, 2023. |
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Rewards for Good Grades | yes | no | no | |||||||||||||||
0.25% Auto Debit Reward | yes | yes | yes | |||||||||||||||
Payment Deferment while in School |
No payments are due until 6 months after graduation or enrollment in school less than half-time unless the borrower has elected, during the application process, to make either interest-only or $25 fixed monthly payments while in school and during the grace period.
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No payments due until 6 months after graduation or enrollment in school less than half-time. | Payments typically begin within 2 months of final disbursement; you have the option to defer payments until 6 months after student's graduation or enrollment in school less than half-time. | |||||||||||||||
Eligible Academic Programs Must be enrolled at least half-time. |
Bachelor's or Associate's degree program at an eligible school. |
Degree, certificate, study-abroad, or certain distance education programs. For more information, contact your school's financial aid office. |
Degree, certificate, study-abroad, or certain distance education programs. For more information, contact your school's financial aid office. |
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Repayment Plans |
15 years
|
10 years standard with flexibility to extend up to 25 years. Multiple repayment options available. Learn more |
10 years standard with flexibility to extend up to 25 years. Multiple repayment options available. Learn more |
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International Student Eligibility |
yes (with eligible cosigner) |
no | no | |||||||||||||||
Free Application for Federal Student Aid (FAFSA®) Required |
no | yes | yes | |||||||||||||||
Credit Check Required |
yes
|
no | yes | |||||||||||||||
Cosigner |
Depends on your credit evaluation. Applying with a creditworthy cosigner may improve your likelihood for loan approval and may lower your interest rate. |
no |
Borrowers with adverse credit history may be required to apply with an endorser. Learn more |
*Annual cost of attending a specific school, including tuition, fees, room and board, books and supplies, transportation, and personal expenses. This amount is determined by your school.
FAFSA® is a registered trademark of the US Department of Education and is not affiliated with Discover Student Loans.
The fixed interest rate is set at the time of application and does not change during the life of the loan unless you are no longer eligible for one or more discounts. The variable interest rate and corresponding APR may increase over the life of the loan. The variable interest rate is calculated based on the 3-Month CME Term SOFR index plus the applicable margin percentage less any applicable discounts. The 3-Month CME Term SOFR index value for variable interest rate loans is X as of X. 3-Month CME Term SOFR is administered by CME Group and is published by CME Group on its website (cmegroup.com/termsofr). Discover Student Loans may adjust the variable interest rate quarterly on each January 1, April 1, July 1 and October 1 (each an “interest rate change date”), based on the 3-Month CME Term SOFR rate available for the day that is 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125), or 0%, whichever is greater. This may cause the monthly payments to increase, the number of payments to increase or both. If the 3-Month CME Term SOFR rate is less than zero percent, then the index will be deemed to be zero percent (as stated in the promissory note) for purposes of calculating your interest rate. Your variable interest rate (index + margin – applicable discounts) will not exceed 18%. Our lowest APRs are only available to applicants with the best credit. The APR will be determined after an application is submitted. It will be based on credit history, the selected repayment option and other factors, including a cosigner’s credit history (if applicable). If a student does not have an established credit history, the student may find it difficult to qualify for a private student loan on their own or receive the lowest advertised rate. Learn more about Discover Student Loans interest rates.
Borrow responsibly. 1. Maximize grants, scholarships, and other free financial aid. 2. Compare federal and private student loans. 3. Choose the loans that best fit your needs.