Discover Health Professions Loans & Discover Residency Loans

Who Is the Borrower?With some loans the parent borrows on behalf of the student. With other loans the student is the primary borrower, usually with a credit-worthy co-borrower who may or may not be the parent, depending on program restrictions.
Eligible graduate, post-graduate, or professional program students.
Is this loan available for International Students?Some lenders will not allow international students to borrow, others will, but will often require a credit-worthy US citizen co-borrower. Check program restrictions.
Yes, when borrowing with a U.S. citizen or permanent resident co-borrower.
Interest Rates and FeesLoans may be offered with interest rates that are fixed for the life of the loan, or they may be variable and indexed to the prime or LIBOR rate. Fixed and variable rates may be tiered which means that the rate you are offered is determined by the strength of your credit. Most, but not all lenders charge no fees. Check program restrictions.
Fixed and variable interest rates are available. On fixed rate loans interest rates range from 6.24% 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 2.74%. Rates range up to 3-month LIBOR plus 7.24%. All interest rates are capped at 18%. Rates are reset quarterly. There are no origination, disbursement, repayment or default/insurance fees.
Average Rate BU Borrowers got Last YearThe rate you are offered may be higher or lower than the average rate offered to BU borrowers for this loan in the past.
Credit CriteriaSome lenders evaluate the strength of your credit based on your credit score, others consider your credit history, others use a combination of both, and some include an assessment scale that is at least in part proprietary. In most cases, a credit-worthy co-borrower is encouraged.
Approval and interest rates are based on the student borrower’s and/or co-borrower’s creditworthiness as determined by Discover.
Minimum and MaximumWhile the maximum amount a student could borrow in a credit-based educational loan is the annual cost of education (as determined by BU) minus any financial aid, including any Federal Stafford Loan, some lenders impose minimum and maximum limits that are more restrictive.
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 $230,000 or $325,000 depending on specialty.
Repayment TermsRepayment terms are set by the lender and may include the length of the repayment term, minimum monthly payment amounts, and whether principal and/or interest payments are due while the student is enrolled. Most lenders have no prepayment penalties.
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 StatusMany but not all lenders require that the student be enrolled at least half time and be in a degree program to be approved for the loan. Check program restrictions.
Students must be enrolled at least half time in an eligible graduate degree program.
Deferment OptionsMany lenders offer borrowers the option to pay principal and interest while the student is enrolled or to pay interest only or make no payments while enrolled. Deferring repayment may increase the overall cost of borrowing. Check program restrictions.
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?Some lenders retain ownership of the loans they originate while others bundle and sell their loans to a third party. Check each lender’s stated practice if this is a determining factor for you.
Discover Bank states that it has not and does not plan to sell their student loans.
Other Borrower BenefitsSome lenders offer benefits such as interest rate reductions to borrowers who, for example have a prior customer relationship with the lender, agree to make payments electronically, graduate with good grades. Check borrower benefits offered by each lender you are considering.
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.
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.
Lender Website and More InformationMore detailed information about loan products is available on each lenders website or by contacting the customer service department of the lender.
Get more information at:

Call Discover at: 800-788-3368

How to ApplyMost loans are applied for electronically via the lender’s website.
Apply online at:
This information is based on information provided by lenders identified in response to a Request for Information evaluated by Boston University in May 2017. 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.