Discover Health Professions Loans

Who Is the Borrower? Eligible graduate medical and dental students; neither borrower or co-borrower required to be a U.S. citizen of permanent resident.
Interest Rate Fixed and variable interest rates are available. Rates are tiered. Fixed rates range from 6.74% to 9.49%. Variable rates are indexed to the prime rate as published in the Wall Street Journal. Rates are tiered and “best” tier borrowers get loans at the prime rate plus 0.00%. Rates range up to prime plus 3.25%. The interest rate is capped at 18%. Rates are reset quarterly.
Credit Criteria Approval and interest rates are based on the student borrower’s and/or co-borrower’s creditworthiness as determined by Discover.
Fees There are no origination, disbursement, repayment or default/insurance fees.
Minimum and Maximum Allowed Loans are approved from $1,000 up to the total cost of education minus any financial aid, including any Federal Stafford Student Loan. The maximum aggregate limit for all educational borrowing is either $180,000 or $275,000 depending on the health profession program in which the student is enrolled.
Repayment Terms and Grace Period Students can choose to begin repayment immediately, make interest-only payments, or defer interest and principal as long as they are enrolled at least half time. Maximum repayment period is 20 years. No prepayment penalties.
Enrollment Status Students must be enrolled at least half time in an eligible graduate degree program.
Deferment Options Repayment of principal and interest begin after a 9 month grace period. Active Duty Military and Public Service Deferments (up to 36 months) and Residency Deferments (up to 60 months) are also available to eligible borrowers.
Can Loan be Sold? Discover Bank states that it does not routinely sell their private loans.
Other Borrower Benefits Borrower get a 0.25% interest rate reduction when payments are withdrawn through a auto-debit service and a cash reward equal to 2% of outstanding principal upon graduation. Hardship forbearance can be requested for up to 12 months in certain circumstances.
Loans Offered for Residency, Relocation or other Expenses? Yes. The Discover Residency Loans are available for students in their final year and up to 12 months after graduation from a health professionals program. Students can borrow from $5,000 to $18,000 depending on specialty to cover the cost of the residency program and relocation expenses.
How to Apply

Get more information and/or apply online:

Call Discover at: 800-788-3368.

This information is based on information provided by lenders identified in response to a Request for Information evaluated by Boston University in May 2016. The terms and conditions of any loan may vary depending on, among other things, market conditions and your credit score. In addition, the terms of loans may change between the time the lenders provided information to Boston University and the time you apply for a loan. Therefore, we recommend that you contact the lender to obtain current terms and conditions and carefully review any proposed terms and obligations. Boston University reserves the right to re-evaluate the inclusion of and to remove a lender or a loan at any time during the year if the University receives information that causes the University to reconsider the lender or loan’s eligibility for inclusion on the list.