Private School Loans from Discover

The way that Discover distinguishes itself from other college loan companies is by offering a different kind of backend benefit:

"A Graduation Reward"

This is a cash reward equal to 2% of the loan principal balance on the last day of the month that you graduate. In other words, the amount is calculated before your accrued interest is added to the principal.

You can choose whether you wish to apply the reward to your loan balance or get a cash deposit into your bank account.

The benefit is conditional upon graduating within six years of taking out the loan.

Student Loan Interest Rates from Discover

These loans have a rate ceiling of 18%. While this may seem astronomical, it is a guarantee that many large lenders (like Wells Fargo student loans) do not give.

Your student loan annual percentage rate (APR) will be lower during the time you are in school, when your loan is deferred (unlike Sallie Mae college loans which require in-school interest payments). After the accrued interest capitalizes (at repayment) your annual rate goes up.

If you enroll in Discover's automatic payment withdrawal plan, you can qualify for the usual .25% rate discount. (PNC bank student loans offers a higher discount.)

• Only students who are enrolled in approved 4 or 5 year schools are eligible for these loans.
• These are school-certified loans; students may borrow up to their cost of attendance minus all other financial aid.
• There is a fifteen year term of repayment, with a six-month grace period after graduation (or falling below half-time enrollment).
• Graduate loans are available with a twenty year repayment schedule and a nine month grace period.
• Money is sent directly to the school.
• Cosigners "may" be needed. (Most definitely.)

State student loan forgiveness programs

Government grants for college

College PLUS loans