Comparison of federal and Discover® private student loans
At Discover Student Loans, we believe in responsible borrowing and encourage students to maximize grants, scholarships, and other free financial aid before taking student loans. The tables below compare federal and private student loans for undergraduate and graduate students, including masters and doctoral candidates, and parents and other creditworthy individuals.
When you compare your options, you may find private student loans are more competitive than federal student loans. Learn more about evaluating student loans.
Compare undergraduate student loans
The table below compares federal and private student loans for undergraduate students.
Select Loan Type
Federal
Federal
Discover Undergraduate Loan |
Federal |
Federal |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Borrower |
Student (may require a cosigner) |
Student |
Parent of dependent undergraduate student (may require an endorser) |
|||||||||||||||
| Lender | Discover Bank® | Government | Government | |||||||||||||||
| 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:
|
Up to 100% of your cost of attendance minus other financial aid.* |
|||||||||||||||
| Interest Rate |
Fixed xxx - xxx APR Variable xxx - xxx APR (3-Month CME Term SOFR + xxx to 3-Month CME Term SOFR + xxx) Lowest APRs are available for the most creditworthy applicants, and include an interest-only repayment discount and Auto Debit Reward.1 |
Fixed 5.50% (for subsidized and unsubsidized loans with a first disbursement between July 1, 2023 and June 30, 2024). |
Fixed 8.05% (for loans with a first disbursement between July 1, 2023 and June 30, 2024). |
|||||||||||||||
| Origination Fee | Zero |
1.057% |
4.228% |
|||||||||||||||
| Rewards for Good Grades | yes | no | no | |||||||||||||||
| 0.25% Auto Debit Reward | yes | yes | yes | |||||||||||||||
| Payment Deferment while in School |
No payments are due until 6 months after graduation or enrollment in school less than half-time unless the borrower has elected, during the application process, to make either interest-only or $25 fixed monthly payments while in school and during the grace period.
|
No payments due until 6 months after graduation or enrollment in school less than half-time. | Payments typically begin within 2 months of final disbursement; you have the option to defer payments until 6 months after student's graduation or enrollment in school less than half-time. | |||||||||||||||
| Eligible Academic Programs Must be enrolled at least half-time. |
Bachelor's or Associate's degree program at an eligible school. |
Degree, certificate, study-abroad, or certain distance education programs. For more information, contact your school's financial aid office. |
Degree, certificate, study-abroad, or certain distance education programs. For more information, contact your school's financial aid office. |
|||||||||||||||
| Repayment Plans |
15 years
|
10 years |
10 years |
|||||||||||||||
| Free Application for Federal Student Aid (FAFSA®) Required |
no | yes | yes | |||||||||||||||
| Credit Check Required |
yes
|
no | yes | |||||||||||||||
| Cosigner |
Depends on your credit evaluation. Applying with a creditworthy cosigner may improve your likelihood for loan approval and may lower your interest rate. |
no |
Borrowers with adverse credit history may be required to apply with an endorser. |
Comparisons based on information obtained from the US Department of Education as of August 2023.
*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.
Compare health professions student loans
The table below compares federal and private student loans for graduate students in health professions.
Select Loan Type
Discover Health Professions Loan |
Federal |
Federal |
|
|---|---|---|---|
| Borrower |
Student (may require a cosigner) |
Student |
Student (may require an endorser) |
| Lender | Discover Bank® | Government |
Government
|
| Annual Loan Limit Loan amounts are certified and disbursed through the school. |
Cover up to 100% school-certified medical school costs, minus other financial aid.* Aggregate loan limits apply. |
Up to $20,500 (certain health profession programs may be higher; contact your financial aid office for exact amounts). |
Up to 100% of your cost of attendance minus other financial aid.* |
| Interest Rate |
Fixed xxx - xxx APR Variable xxx - xxx APR (3-Month CME Term SOFR + xxx to 3-Month CME Term SOFR + xxx) Lowest APRs are available for the most creditworthy applicants, and include an interest-only repayment discount and Auto Debit Reward.1 |
7.05% fixed (for unsubsidized loans with a first disbursement between July 1, 2023 and June 30, 2024). |
8.05% fixed (for loans with a first disbursement between July 1, 2023 and June 30, 2024). |
| Origination Fee | Zero |
1.057% |
4.228% |
| Rewards for Good Grades | yes | no | no |
| 0.25% Auto Debit Reward | yes | yes | yes |
| Payment Deferment while in School |
No payments are due until 9 months after graduation or enrollment in school less than half-time unless the borrower has elected, during the application process, to make either interest-only or $25 fixed monthly payments while in school and during the grace period.
|
No payments due until 6 months after graduation or enrollment in school less than half-time. |
No payments due until 6 months after graduation or enrollment in school less than half-time. |
| Eligible Academic Programs Must be enrolled at least half-time. |
Graduate degree programs in Allopathy, Dentistry, Nursing, Occupational Therapy, Optometry, Osteopathy, Pharmacy, Physical Therapy, Physician Assistant, Podiatry, or Veterinary Medicine. | Degree, certificate, study-abroad, or certain distance education programs. For more information, contact your school's financial aid office. | Degree, certificate, study-abroad, or certain distance education programs. For more information, contact your school's financial aid office. |
| Repayment Plans |
20 years
|
10 years |
10 years |
| Free Application for Federal Student Aid (FAFSA®) Required | no | yes | yes |
| Credit Check Required | yes | no | yes |
| Cosigner | Depends on your credit evaluation. Applying with a creditworthy cosigner may improve your likelihood for loan approval and may lower your interest rate. | no |
Borrowers with adverse credit history may be required to apply with an endorser. |
Comparisons based on information obtained from the US Department of Education as of August 2023.
*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.
Compare law student loans
The table below compares federal and private student loans for graduate students in law school.
Select Loan Type
Discover Law Loan |
Federal |
Federal |
|
|---|---|---|---|
| Borrower |
Student (may require a cosigner) |
Student
|
Student (may require an endorser) |
| Lender | Discover Bank® | Government | Government |
| Annual Loan Limit Loan amounts are certified and disbursed through the school. |
Cover up to 100% of school-certified law school costs, minus other financial aid.* Aggregate loan limits apply. |
Up to $20,500 |
Up to 100% of your cost of attendance minus other financial aid.* |
| Interest Rate |
Fixed xxx - xxx APR Variable xxx - xxx APR (3-Month CME Term SOFR + xxx to 3-Month CME Term SOFR + xxx) Lowest APRs are available for the most creditworthy applicants, and include an interest-only repayment discount and Auto Debit Reward.1 |
7.05% fixed (for unsubsidized loans with a first disbursement between July 1, 2023 and June 30, 2024). |
8.05% fixed (for loans with a first disbursement between July 1, 2023 and June 30, 2024). |
| Origination Fee | Zero |
1.057% |
4.228% |
| Rewards for Good Grades | yes | no | no |
| 0.25% Auto Debit Reward | yes | yes | yes |
| Payment Deferment while in School |
No payments are due until 9 months after graduation or enrollment in school less than half-time unless the borrower has elected, during the application process, to make either interest-only or $25 fixed monthly payments while in school and during the grace period.
|
No payments due until 6 months after graduation or enrollment in school less than half-time. | No payments due until 6 months after graduation or enrollment in school less than half-time. |
| Eligible Academic Programs Must be enrolled at least half-time. |
Graduate law degree programs. | Degree, certificate, study-abroad, or certain distance education programs. For more information, contact your school's financial aid office. | Degree, certificate, study-abroad, or certain distance education programs. For more information, contact your school's financial aid office. |
| Repayment Plans |
20 years
|
10 years |
10 years |
| Free Application for Federal Student Aid (FAFSA®) Required | no | yes | yes |
| Credit Check Required | yes | no | yes |
| Cosigner | Depends on your credit evaluation. Applying with a creditworthy cosigner may improve your likelihood for loan approval and may lower your interest rate. | no |
Borrowers with adverse credit history may be required to apply with an endorser. |
Comparisons based on information obtained from the US Department of Education as of August 2023.
*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.
Compare MBA student loans
The table below compares federal and private student loans for graduate students in business school.
Select Loan Type
Discover MBA Loan |
Federal |
Federal |
|
|---|---|---|---|
| Borrower |
Student (may require a cosigner) |
Student | Student |
| Lender |
Discover Bank®
|
Government
|
Government
|
| Annual Loan Limits Loan amounts are certified and disbursed through the school. |
Cover up to 100% of school-certified business school costs, minus other financial aid.* Aggregate loan limits apply. |
Up to $20,500 |
Up to 100% of your cost of attendance minus other financial aid.* |
| Interest Rate |
Fixed xxx - xxx APR Variable xxx - xxx APR (3-Month CME Term SOFR + xxx to 3-Month CME Term SOFR + xxx) Lowest APRs are available for the most creditworthy applicants, and include an interest-only repayment discount and Auto Debit Reward.1 |
7.05% fixed (for unsubsidized loans with a first disbursement between July 1, 2023 and June 30, 2024). |
8.05% fixed (for loans with a first disbursement between July 1, 2023 and June 30, 2024). |
| Origination Fee | Zero |
1.057% |
4.228% |
| Rewards for Good Grades | yes | no | no |
| 0.25% Auto Debit Reward | yes | yes | yes |
| Payment Deferment while in School |
No payments are due until 9 months after graduation or enrollment in school less than half-time unless the borrower has elected, during the application process, to make either interest-only or $25 fixed monthly payments while in school and during the grace period.
|
No payments due until 6 months after graduation or enrollment in school less than half-time. | No payments due until 6 months after graduation or enrollment in school less than half-time. |
| Eligible Academic Programs Must be enrolled at least half-time. |
Graduate business degree programs. | Degree, certificate, study-abroad, or certain distance education programs. For more information, contact your school's financial aid office. | Degree, certificate, study-abroad, or certain distance education programs. For more information, contact your school's financial aid office. |
| Repayment Plans |
20 years
|
10 years |
10 years |
| Free Application for Federal Student Aid (FAFSA®) Required |
no | yes | yes |
| Credit Check Required | yes | no | yes |
| Cosigner | Depends on your credit evaluation. Applying with a creditworthy cosigner may improve your likelihood for loan approval and may lower your interest rate. | no |
Borrowers with adverse credit history may be required to apply with an endorser. |
Comparisons based on information obtained from the US Department of Education as of August 2023.
*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.
Compare graduate student loans
The table below compares federal and private student loans for graduate students, including masters and doctoral candidates.
Select Loan Type
Discover Graduate Loan |
Federal |
Federal |
|
|---|---|---|---|
| Borrower |
Student (may require a cosigner) |
Student |
Student (may require an endorser) |
| Lender |
Discover Bank®
|
Government
|
Government
|
| Annual Loan Limit Loan amounts are certified and disbursed through the school. |
Cover up to 100% of school-certified graduate school costs, minus other financial aid.* Aggregate loan limits apply. |
Up to $20,500 (certain health profession programs may be higher; contact your financial aid office for exact amounts). |
Up to 100% of your cost of attendance minus other financial aid.* |
| Interest Rate |
Fixed xxx - xxx APR Variable xxx - xxx APR (3-Month CME Term SOFR + xxx to 3-Month CME Term SOFR + xxx) Lowest APRs are available for the most creditworthy applicants, and include an interest-only repayment discount and Auto Debit Reward.1 |
7.05% fixed (for unsubsidized loans with a first disbursement between July 1, 2023 and June 30, 2024). |
8.05% fixed (for loans with a first disbursement between July 1, 2023 and June 30, 2024). |
| Origination Fee | Zero |
1.057% |
4.228% |
| Rewards for Good Grades | yes | no | no |
| 0.25% Auto Debit Reward | yes | yes | yes |
| Payment Deferment while in School |
No payments are due until 9 months after graduation or enrollment in school less than half-time unless the borrower has elected, during the application process, to make either interest-only or $25 fixed monthly payments while in school and during the grace period.
|
No payments due until 6 months after graduation or enrollment in school less than half-time. |
No payments due until 6 months after graduation or enrollment in school less than half-time. |
| Eligible Academic Programs Must be enrolled at least half-time. |
Graduate degree programs. | Degree, certificate, study-abroad, or certain distance education programs. For more information, contact your school's financial aid office. | Degree, certificate, study-abroad, or certain distance education programs. For more information, contact your school's financial aid office. |
| Repayment Plans |
20 years
|
10 years |
10 years |
| Free Application for Federal Student Aid (FAFSA®) Required |
no | yes | yes |
| Credit Check Required | yes | no | yes |
| Cosigner | Depends on your credit evaluation. Applying with a creditworthy cosigner may improve your likelihood for loan approval and may lower your interest rate. | no |
Borrowers with adverse credit history may be required to apply with an endorser. |
Comparisons based on information obtained from the US Department of Education as of August 2023.
*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.
Compare parent loans
The table below compares federal and private parent loans for parents and other creditworthy individuals who choose to borrow money to fund an undergraduate or graduate student's education.
Discover Parent Loan |
Federal |
|
|---|---|---|
| Borrower | Parent or other creditworthy individual on behalf of an undergraduate or graduate student |
Parent of dependent undergraduate student (may require an endorser) |
| Lender | Discover Bank® |
Government |
| Annual Loan Limits Loan amounts are certified and disbursed through the school. |
Cover up to 100% of school-certified college and graduate school costs, minus other financial aid.* Aggregate loan limits apply. |
Up to 100% of the cost of attendance minus other financial aid.* |
| Interest Rate |
Fixed xxx - xxx APR Variable xxx - xxx APR (3-Month CME Term SOFR + xxx to 3-Month CME Term SOFR + xxx) Lowest APRs are available for the most creditworthy applicants and include an Auto Debit Reward.1 |
8.05% fixed (for loans with a first disbursement between July 1, 2023 and June 30, 2024). |
| Origination Fee | Zero |
4.228% |
| 0.25% Auto Debit Reward | yes | yes |
| Payment Due | No payments due until the final disbursement. | Payments typically begin within 2 months of final disbursement; you have the option to defer payments until 6 months after student's graduation or enrollment in school less than half-time. |
| Eligible Academic Programs Must be enrolled at least half-time. |
Bachelor's, Associate's, or graduate degree program at an eligible school. |
Degree, certificate, study-abroad, or certain distance education programs. For more information, contact the school's financial aid office. |
| Repayment Plans |
15 years
|
10 years |
| Free Application for Federal Student Aid (FAFSA®) Required |
no | yes |
| Credit Check Required | yes | yes |
| Cosigner | no |
Borrowers with adverse credit history may be required to apply with an endorser. |
Comparisons based on information obtained from the US Department of Education as of August 2023.
*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 the school.
FAFSA® is a registered trademark of the US Department of Education and is not affiliated with Discover Student Loans.
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 X as of X. 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.