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Discover Student Loans Marks Three-Year Anniversary

August 04, 2010

Private Loans Help Fill Gaps Where Public Funds Fall Short

RIVERWOODS, Ill., Aug 04, 2010 (BUSINESS WIRE) -- Discover Student Loans is celebrating its third anniversary by reducing its lowest eligible interest rate to 3.75 percent to help families cope with the rising costs of higher education, cutbacks in available scholarships and increased competition for shrinking public funds.

Since Discover Student Loans entered the market in July 2007, the average published tuition and fees have increased by 13.5 percent at public four-year colleges and universities for in-state students and are up 10.8 percent at private colleges, according to the College Board. This year, the National Association of Student Financial Aid Administrators says that many states, charities and colleges have already cut or plan to cut their 2010 scholarship budgets.

Discover Student Loans has grown steadily over the past three years when many others discontinued student lending.

"We are committed to providing students and families with a simple and affordable solution to help them pay for school," says PK Parekh, director and general manager of Discover Student Loans. "We believe in responsible lending and encourage students and their families to first consider free financial aid, family assistance and personal savings, and then federal loans before turning to private loans."

In its first three years, Discover Student Loans has already assisted more than 200,000 students with $3 billion in loans.

For more information on Discover Student Loans, visit DiscoverStudentLoans.com.

About Discover

Discover Financial Services (NYSE: DFS) is a direct banking and payment services company with one of the most recognized brands in U.S. financial services. Since its inception in 1986, the company has become one of the largest card issuers in the United States. The company operates the Discover card, America's cash rewards pioneer, and offers personal and student loans, online savings accounts, certificates of deposit and money market accounts through its Discover Bank subsidiary. Its payment businesses consist of Discover Network, with millions of merchant and cash access locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club International, a global payments network with acceptance in more than 185 countries and territories. For more information, visit http://www.discoverfinancial.com.

SOURCE: Discover Financial Services

Jon Drummond
Discover Financial Services
224-405-1888
jondrummond@discover.com