Student Loan Interest Rates
(for new applications)

APR and Loan Cost Examples
About Student Loan Interest Rates and APR
About Variable Interest Rates and Prime Index

We provide student loans with fixed or variable interest rates.

  • A fixed interest rate is set at the time of application and does not change during the life of the loan
  • A variable interest rate may change quarterly during the life of the loan, if the Prime Index changes. This may result in a higher monthly payment, an increase in the number of scheduled payments or both.

APR and Loan Cost Examples

For the range of interest rates effective on new applications as of December 6, 2013

  • The following examples depict the APR, monthly payment and total payments during the life of a $10,000 private loan with a single disbursement.
  • For variable rate loans, the Prime Index is currently 3.25% and may change quarterly. This may cause the monthly payment to increase, the number of payments to increase or both.
  • Your actual student loan interest rate may be different than the rates in these examples and will be based on your credit history and other factors, including your cosigner's (if any) credit history.
  • The deferment period is an example of the number of months a student is not required to make any payments of principal or interest. It includes the amount of time the student is enrolled in school at least half-time and a grace period. The repayment period is the number of months over which the loan will be repaid.
  • These examples assume no payments are made during the deferment period. Although you are not required to make payments until your loan enters repayment, you can make payments at any time without penalty. By making payments ahead of your repayment schedule, you can reduce the total cost of your loan.

Discover Undergraduate Loan

Assuming you have 4 years of school remainingDeferment
(45 months in school + 6 months grace)
Repayment
(180 months of equal payments)
Life of Loan (231 months)
Starting BalanceAccrued InterestDeferment APRMonthly PaymentTotal PaymentsRepayment APRAPR
Fixed RateLowest Rate = 6.74%$10,000$2,8656.11%$113.77$20,4786.74%6.42%
Highest Rate = 10.99%$10,000$4,6719.44%$166.66$29,99810.99%10.16%
Variable RateLowest Starting
Rate = 3.25%

(Prime Index + 0.00%)
$10,000$1,3813.09%$79.97$14,3953.25%3.17%
Highest Starting
Rate = 8.25%

(Prime Index + 5.00%)
$10,000$3,5067.33%$131.03$23,5858.25%7.77%

Discover Health Professions Loans

Assuming you have 2 years of school remainingDeferment
(21 months in school + 9 months grace)
Repayment
(240 months of equal payments)
Life of Loan (270 months)
Starting BalanceAccrued InterestDeferment APRMonthly PaymentTotal PaymentsRepayment APRAPR
Fixed RateLowest Rate = 6.74%$10,000$1,6856.43%$88.78$21,3076.74%6.62%
Highest Rate = 9.49%$10,000$2,3738.89%$115.25$27,6599.49%9.24%
Variable RateLowest Starting
Rate = 3.25%

(Prime Index + 0.00%)
$10,000$813 3.17%$61.33 $14,719 3.25%3.22%
Highest Starting
Rate = 6.75%

(Prime Index + 3.50%)
$10,000$1,6886.44%$88.87$21,328 6.75%6.63%

Discover Residency Loans

Assuming you have 1 year of school remainingDeferment
(9 months in school + 9 months grace)
Repayment
(240 months of equal payments)
Life of Loan (258 months)
Starting BalanceAccrued InterestDeferment APRMonthly PaymentTotal PaymentsRepayment APRAPR
Fixed RateLowest Rate = 6.74%$10,000$1,0116.63%$83.66$20,0786.74%6.69%
Highest Rate = 10.99%$10,000$1,64910.71%$120.16$28,83710.99%10.85%
Variable RateLowest Starting
Rate = 3.25%

(Prime Index + 0.00%)
$10,000$4883.22%$59.48$14,2763.25%3.24%
Highest Starting
Rate = 8.25%

(Prime Index + 5.00%)
$10,000$1,2388.09%$95.75$22,9808.25%8.17%

Discover Law Loans

Assuming you have 2 years of school remainingDeferment
(21 months in school + 9 months grace)
Repayment
(240 months of equal payments)
Life of Loan (270 months)
Starting BalanceAccrued InterestDeferment APRMonthly PaymentTotal PaymentsRepayment APRAPR
Fixed RateLowest Rate = 6.74%$10,000$1,6856.43%$88.78$21,3076.74%6.62%
Highest Rate = 9.49%$10,000$2,373 8.89%$115.25$27,6599.49%9.24%
Variable RateLowest Starting
Rate = 3.25%

(Prime Index + 0.00%)
$10,000$813 3.17%$61.33 $14,719 3.25%3.22%
Highest Starting
Rate = 6.75%

(Prime Index + 3.50%)
$10,000$1,688 6.44%$88.87 $21,3286.75%6.63%

Discover Bar Exam Loans

Assuming you have 1 year of school remainingDeferment
(9 months in school + 9 months grace)
Repayment
(240 months of equal payments)
Life of Loan (258 months)
Starting BalanceAccrued InterestDeferment APRMonthly PaymentTotal PaymentsRepayment APRAPR
Fixed RateLowest Rate = 6.74%$10,000$1,0116.63%$83.66$20,0786.74%6.69%
Highest Rate = 10.99%$10,000$1,64910.71%$120.16$28,83710.99%10.85%
Variable RateLowest Starting
Rate = 3.25%

(Prime Index + 0.00%)
$10,000$4883.22%$59.48$14,2763.25%3.24%
Highest Starting
Rate = 8.25%

(Prime Index + 5.00%)
$10,000$1,2388.09%$95.75$22,9808.25%8.17%

Discover MBA Loans

Assuming you have 2 years of school remainingDeferment
(21 months in school + 9 months grace)
Repayment
(240 months of equal payments)
Life of Loan (270 months)
Starting BalanceAccrued InterestDeferment APRMonthly PaymentTotal PaymentsRepayment APRAPR
Fixed RateLowest Rate = 6.74%$10,000$1,6856.43%$88.78$21,3076.74%6.62%
Highest Rate = 9.49%$10,000$2,3738.89%$115.25$27,6599.49%9.24%
Variable RateLowest Starting
Rate = 3.25%

(Prime Index + 0.00%)
$10,000$8133.17%$61.33$14,719 3.25%3.22%
Highest Starting
Rate = 6.75%

(Prime Index + 3.50%)
$10,000$1,6886.44%$88.87$21,328 6.75%6.63%

Discover Graduate Loans

Assuming you have 2 years of school remainingDeferment
(21 months in school + 9 months grace)
Repayment
(240 months of equal payments)
Life of Loan (270 months)
Starting BalanceAccrued InterestDeferment APRMonthly PaymentTotal PaymentsRepayment APRAPR
Fixed RateLowest Rate = 6.74%$10,000$1,6856.43%$88.78$21,3076.74%6.62%
Highest Rate = 10.99%$10,000$2,74810.20%$131.49 $31,55810.99%10.65%
Variable RateLowest Starting
Rate = 3.25%

(Prime Index + 0.00%)
$10,000$8133.17%$61.33 $14,719 3.25%3.22%
Highest Starting
Rate = 8.25%

(Prime Index + 5.00%)
$10,000$2,0637.79%$102.78$24,6678.25%8.07%


About Student Loan Interest Rates and APR

What is an interest rate?

  • The interest rate is used to calculate the actual amount of interest that accrues on your student loan.
  • For example, if your principal loan balance is $10,000 and your interest rate is 10% (and you make no payments), then your loan will accrue $1,000 (= $10,000 x 0.10) in interest in one year.

What is an APR?

  • The Annual Percentage Rate (APR) takes into account the interest rate, fees (if any), length of your deferment period and how interest capitalizes.
  • The APR is a number you can use to compare loans from different lenders since their interest rates, fees, deferment options and capitalization policy may differ.
  • The APR does not represent the rate at which interest accrues.
  • The APR may be different during the deferment period and the repayment period.

Why would the interest rate be different from the APR?

  • Discover Student Loans have zero fees, automatic in-school deferment and no interest capitalization during the deferment period - as a result, the deferment period APR will be less than the interest rate.
  • For our student loans, accrued interest capitalizes at the start of the repayment period - since we do not charge fees, and assuming you make all your scheduled payments on time, the repayment period APR will be equal to the interest rate.
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About Variable Interest Rates and Prime Index

Variable interest rates for new Discover Student Loans are calculated as the Prime Index plus the applicable Margin percentage. The interest rate will never be higher than 18% per year, regardless of the Prime Index.

For questions about the interest rates for your existing Discover Student Loans, call us at 1-877-728-3030 anytime 24 hours a day, 7 days a week.

Variable Student Loan Interest Rate for Discover Student Loans = Prime Index + Margin

When does the Prime Index change and how is its value determined?

The Prime Index will change quarterly on each January 1, April 1, July 1 and October 1. On each change date the Prime Index is the highest rate of interest listed as the prime rate in the Money Rates section of The Wall Street Journal on the first Friday of the calendar month preceding the interest rate change date. If The Wall Street Journal is not published or the prime rate is not listed on the first Friday, then the next published value of the prime rate will be used to set the Prime Index. The Prime Index is a pricing index and does not represent the lowest or best interest rate available to a borrower at any bank at any given time.

What is the current Prime Index value?

QuarterPrime IndexSet as WSJ prime rate on
Apr 1 - Jun 30, 20143.25%Mar 7, 2014
Jan 1 - Mar 31, 20143.25%Dec 6, 2013
Oct 1 - Dec 31, 20133.25%Sep 6, 2013
Jul 1 - Sep 30, 20133.25%Jun 7, 2013
Apr 1 - Jun 30, 20133.25%Mar 1, 2013
Jan 1 - Mar 31, 20133.25%Dec 7, 2012
Oct 1 - Dec 31, 20123.25%Sep 7, 2012
Jul 1 - Sep 30, 20123.25%Jun 1, 2012
Apr 1 - Jun 30, 20123.25%Mar 2, 2012
Jan 1 - Mar 31, 20123.25%Dec 2, 2011
Oct 1 - Dec 31, 20113.25%Sep 2, 2011
Jul 1 - Sep 30, 20113.25%Jun 3, 2011
Apr 1 - Jun 30, 20113.25%Mar 4, 2011
Jan 1 - Mar 31, 20113.25%Dec 3, 2010
Oct 1 - Dec 31, 20103.25%Sep 3, 2010
Jul 1 - Sep 30, 20103.25%Jun 4, 2010
Apr 1 - Jun 30, 2010 3.25%Mar 5, 2010
Jan 1 - Mar 31, 2010 3.25%Dec 4, 2009
Oct 1 - Dec 31, 2009 3.25%Sep 4, 2009
Jul 1 - Sep 30, 2009 3.25%Jun 5, 2009
Apr 1 - Jun 30, 20093.25%Mar 6, 2009
Jan 1 - Mar 31, 20094.00%Dec 5, 2008
Oct 1 - Dec 31, 20085.00%Sep 5, 2008
Jul 1 - Sep 30, 20085.00%Jun 6, 2008
Apr 1 - Jun 30, 20086.00%Mar 7, 2008
Jan 1 - Mar 31, 20087.50%Dec 7, 2007
Oct 1 - Dec 31, 20078.25%Sep 7, 2007
Jul 1 - Sep 30, 20078.25%Jun 1, 2007
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