How to Help Your Child Qualify for a Discover Student Loan

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Student Loan Hero Advertiser Disclosure

Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

Editorial Note: This content is not provided or commissioned by any financial institution. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and may not have been reviewed, approved or otherwise endorsed by the financial institution.


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  • Variable APR

When it comes to your children, you want to give them the best — and that includes their education. However, college today is more expensive than ever before.

According to the National Center for Education Statistics, the cost of tuition and fees for a student going to an in-state public school in 1990 was $3,016. As of 2017, the average cost to go to a public university has jumped to $9,650.

With that high price tag, it’s no wonder that many families have to turn to student loans to pay for school. Although federal loans should be the first place you and your child look for aid, sometimes those loans don’t cover the full cost of attendance. In that situation, you might need to turn to private student loans.

One private option to consider is Discover student loans. If you’re willing to help your child with their education, you can boost their chances of getting approved for a loan and qualify for a lower interest rate to make school more affordable.

Discover student loans

As a parent, you want to make sure your child only deals with established, reputable lenders. Though Discover is well-known for its credit cards, personal loans, and banking options, it also offers a robust student loan program.

Discover loans: Student products to pay for school

Whether your child is an incoming freshman or a law student preparing for the bar exam, Discover has loan options that can work for them. Discover doesn’t charge any application, origination, or prepayment fees. Even better, they offer both fixed and variable interest rates.

    Fixed-rate loans have the same interest rate and minimum payment for the length of the loan.

    As of October 2019, fixed interest rates can be as low as 4.74%* depending on the type of loan your child takes out.

    Unlike fixed-rate loans, variable interest rates typically start out low but can fluctuate over time. Your child’s interest rate and minimum payment could increase during their repayment term. However, many people find the initial lower rate to be worth it. With Discover, they could qualify for a rate as low as 3.12%*.

    Discover’s lowest rates shown are for the undergraduate loan and include an interest-only repayment discount and a 0.25% interest rate reduction while enrolled in automatic payments.

    Borrowers can get a one-time Cash Reward for Good Grades on each new Discover undergraduate and graduate student loan if they get a 3.0 or better GPA (or equivalent) in any academic term covered by the loan . The reward redemption period is limited.

    Using Discover’s parent site

    Although Discover often allows students to borrow enough money to cover 100 percent of their tuition and housing expenses, that doesn’t mean your child should rely solely on private student loans to cover college costs. There might be cheaper options available to them.

    To help educate families about all of their financing options, including federal student loans, Discover launched a parent-specific portal with advice on how to navigate paying for school.

    discover student loans review

    Image credit: Discover.com

    You don’t need to create an account to access the parent site. It’s a free resource you can access anytime.

    How to help your child qualify for lower interest rates

    Although students can apply for Discover student loans on their own, they might struggle to get approved. Even if they can qualify for a loan by themselves, they might not be eligible for a low interest rate.

    You can improve your child’s chances of receiving a loan and qualifying for a competitive interest rate by acting as a cosigner.

    A cosigner is someone with a strong credit history and income that guarantees the loan, meaning that if your child falls behind on payments, you’ll be responsible for them instead. Because a cosigner lowers the bank’s risk, the lender is more likely to offer a low-interest loan to your kid.

    Unlike some other lenders, Discover doesn’t offer cosigner release, meaning there is no way to remove yourself from the loan later on. You’ll be responsible for the loan — and it will show up on your credit report — until it’s paid in full.

    Acting as a cosigner is a big decision, so make sure you understand the ways it can affect you before putting your name on the application.

    Applying for a loan through the Discover online platform

    If you plan on acting as a cosigner on your child’s loan, they can complete the application on their own first or you can start a cosigner application. If the student fills it out first, Discover will send them a cosigner key code, which you will use to start a cosigner application.

    discover loans student

    Image credit: Discover.com

    To complete the application, you will need your Social Security number, employer information, financial information — including rent or mortgage payments — and your permanent address handy. The site will prompt you to enter your information, and you can receive a credit result in as little as 15 minutes.

    Eligibility requirements for Discover student loans

    There are set qualifications students must meet to receive a Discover loan, which you can learn about in this Discover student loans review.

    If you’re a parent who wants to cosign a loan to help your child, you must be a U.S. citizen or permanent resident. Although Discover doesn’t list the minimum credit score or income it requires for cosigners on its website, cosigners will likely need good to excellent credit and enough income to afford the monthly payments if needed.

    Compare private lenders

    Discover student loans have some appealing perks, such as the GPA reward and graduation cash-back bonus, but you and your child shouldn’t base your decision on those factors alone. The lack of a cosigner release can affect you later on, and it’s wise to compare offers from multiple student loan lenders to ensure your child gets the best offer.

    Need a student loan?

    Check out our top picks below or learn more about other ways to pay for college.
    Advertiser Disclosure

    Student Loan Hero Advertiser Disclosure

    Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

    Advertiser Disclosure

    Student Loan Hero Advertiser Disclosure

    Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print to help you understand what you are buying. Be sure to consult with a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time.

    Variable APRDegrees That QualifyMore Info
    2.84% – 10.97%1 Undergraduate
    Graduate

    Visit College Ave

    3.12% – 10.54%2 Undergraduate
    Graduate

    Visit SallieMae

    3.37% – 11.87%3 Undergraduate
    Graduate

    Visit Discover

    3.52% – 9.50%4 Undergraduate
    Graduate

    Visit CommonBond

    2.90% – 11.16%5 Undergraduate
    Graduate

    VISIT CITIZENS