Discover Undergraduate Loans

Who Is the Borrower? Eligible undergraduate students; borrower or co-borrower must be U.S. citizen or permanent resident.
Interest Rate Fixed and variable interest rates are available. Rates are tiered. Fixed rates range from 6.74% to 10.99%.Variable interest rate is 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 5.00%. 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 Loan up to a maximum aggregate limit of $150,000.
Repayment Terms Students can choose to begin repayment immediately, make interest-only payments, or defer interest and principal until 6 months after they cease to be enrolled at least half time. Maximum repayment period is 15 years. No prepay-ment penalties.
Enrollment Status Students must be enrolled at least half time each semester in an undergraduate program.
Deferment Options Options for interest-only repayment and deferment of principal and interest are available. Repayment of principal and interest begins 6 months after the student ceases to be enrolled at least half time. Deferments (up to 36 months) for Active Duty Military and Public Service are also available.
Can Loan be Sold? Discover Bank states that they do not 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Other Borrower Benefits Borrower get a 0.25% interest rate reduction when payments are withdrawn through a auto-debit service and a cash reward equal to 2% of outstanding principal upon graduation. 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.
How to Apply

Get more information and/or apply online: https://www.discoverstudentloans.com/apply/default.aspx

Call Discover at: 877-728-3030

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.