Discover Law Loans & Discover Bar Exam Loans
|Who Is the Borrower?||Eligible graduate law school students; borrower or co-borrower must be a U.S. citizen or permanent resident.|
|Interest Rate||Fixed and variable interest rates are available. On fixed rate loans interest rates range from 6.15% to 9.99%. On variable rate loans interest rates are indexed to the 3-month LIBOR. Rates are tiered and “best” tier borrowers get loans at 3-month LIBOR plus 2.62%. Rates range up to 3-month LIBOR plus 7.24%. All interest rates are 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 $180,000.|
|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||Borrowers can elect to defer payment of interest and principal while in school and during the 9 month grace period. Repayment of principal and interest begin after the grace period. Active Duty Military and Public Service Deferments (up to 36 months) are 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|Other Borrower Benefits||Borrower get a 0.25% interest rate reduction when payments are withdrawn through a auto-debit service and a cash reward equal to 1% of outstanding principal for good grades. Loan forgiveness is granted upon the death or total permanent disability of the borrower. Hardship forbearance can be requested for up to 12 months in certain circumstances.|
|Bar Study Loans?||Yes. The Discover Bar Exam Loans are available for students enrolled at least half time in their final year of law school or who have graduated within the past six months. Students can borrow up to $16,000 for bar exam preparation classes and living 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 issued by Boston University. The terms and conditions of any loan may vary depending on, among other things, market conditions and your credit score. Proposed terms may have changed since lenders provided information to Boston University. You should contact the lender to obtain current terms and information. You should review any proposed terms and obligations carefully.