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Discover Student Loans is a financial aid program that helps students pay for college, graduate school, and more.
The Discover Student Loans program offers a variety of loan types to help you pay for school. The program has two main categories: Direct Loans and Federal Family Education Loan Program (FFELP). Direct Loans are federally funded and administered by the U.S. Department of Education, while FFELP loans are federally funded but administered by private financial institutions.
Scholarshub Contents Table
Undergraduate Student Loans
Cover up to 100% of your school-certified college expenses with our undergraduate loans. Aggregate loan limits apply.
Private student loans are credit based. Students with no credit history or a low credit score may find it difficult to qualify for a private student loan on their own. Students may have the option to apply for a Discover student loan with a creditworthy cosigner. By applying with a creditworthy cosigner, you may improve your likelihood for loan approval and may receive a lower interest rate.
The variable rate for student loan applications received on or after November 14, 2021 is based on 3-Month CME Term SOFR index. 3-Month CME Term SOFR (Secured Overnight Financing Rate) is a rate index based on what the market expects rates to be over the next three-month time period. You can find more information on 3-Month CME Term SOFR at CME Group.
What are Rewards for Good Grades?
Doing your homework has its rewards.
Students who get at least a 3.0 GPA (or equivalent) may qualify for a one-time cash reward of 1% of the loan amount on each new Discover Undergraduate Loan. Reward redemption period is limited.
If you’re an undergraduate freshman student, you also may qualify for an additional cash reward of 1% of the school-certified loan amount on your first Discover Undergraduate Loan. Reward redemption period is limited.
If you are in school at least half-time, on active military duty, serving a public service organization or in a medical residency, you may qualify for a deferment. A deferment period is a period of time when a borrower is not required to make any payments. During deferment, interest will continue to accrue. At the end of a deferment period, any unpaid interest will be added to your principal balance. This may increase the amount of your monthly payments and the total cost of your loan(s). Learn more
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.
What are my repayment options?
In-School Interest-Only – Required to make interest only monthly payments while you are in school and during your grace period to lower your overall loan cost and receive a 0.35% interest rate discount.
In-School Fixed – Required to make $25 fixed, monthly payments while you are in school and during your grace period to lower your overall loan cost.
Deferred – Monthly payments are not required until 6 months after you graduate or your enrollment drops below half-time.
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.
If you are experiencing financial difficulties and you are unable to make your student loan payments, we have options to help. To learn more and determine if you qualify, please call our Repayment Assistance Department at 1-800-STUDENT. Learn more
Compare Undergraduate Student Loans
The table below compares federal and private student loans for undergraduate students.
FederalDirect Loans For Students
FederalDirect PLUS Loans For Parents
Student (may require a cosigner)
Parent of dependent undergraduate student (may require an endorser)
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: Yr. Dep. Indep. 1$5.5K $9.5K 2$6.5K $10.5K 3$7.5K $12.5K 4$7.5K $12.5K
Note: A dependent student whose parent is denied for a PLUS loan may borrow up to the independent student limit.
Up to 100% of your cost of attendance minus other financial aid.*
Fixed 4.49% – 13.34% APR
Variable 1.79% – 11.24% APR (3-Month CME Term SOFR + 1.17% to 3-Month CME Term SOFR + 10.62%)
*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.
Take advantage of the different types of financial aid available, like scholarships and grants to help you pay for school, before a loan from Discover Student Loans.Financial AidNavigating Financial Aid
Navigating the financial aid process can seem daunting whether it’s your first time in college or you are a returning student. Use these step-by-step instructions to help guide you through the process.College CostsDoes it Pay to Stay in State?
It is a common belief that out-of-state tuition can be more expensive than in-state tuition. Check out which states offer affordable costs to attend state schools.
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 0.625% as of April 1, 2022. 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.
In conclusion, it is important to note that student loans are a good way to help students finance their education. Students can use a variety of different types of loans, including federal and private loans. Student loans have become more popular in recent years as many people are finding it difficult to pay for college without assistance.