Discover Announces Fixed-Rate Private Student Loans

May 21, 2012

Discover Student Loans Adds Fixed-Rate Loans for Undergraduate, Health Professions, Law, MBA and Graduate Students

RIVERWOODS, Ill.--(BUSINESS WIRE)--May. 21, 2012-- Discover Student Loans, one of the largest originators of private student loans in the United States, announced today new fixed-rate loans for undergraduate and graduate students with rates as low as 6.79 percent APR.

While Discover continues to offer competitively priced variable rate loans with initial rates as low as the prime rate -- currently 3.25 percent APR -- the new fixed-rate loans provide predictability with a set interest rate for the life of the loan. Discover's fixed-rate loans are designed to have rates comparable to unsubsidized Stafford and PLUS Loans without the up-front origination fees of up to 4 percent.

Like all Discover Student Loans, fixed-rate loans:

  • Have zero origination fees
  • Are backed by 24/7 customer service
  • Come with a 0.25 percent Auto Debit Reward
  • Require no payments while students are enrolled in school at least half-time
  • Are forgiven in the event of the primary borrower’s death or permanent disability

“For students who want the convenience and simplicity of knowing what their monthly payments will be, Discover’s new fixed-rate loans are a great option,” said Steve Olszewski, senior vice president of student loans for Discover. “Our mix of fixed- and variable-rate loans gives borrowers the ability to choose a loan that better meets their unique circumstances.”

As a responsible lender of private student loans, Discover encourages students and their parents to seek out all available grants, scholarships and free financial aid before taking student loans. Discover also advises students to consider federal student loans and to compare all the features of federal and private student loans to see which loans best fit their needs. Discover requires school certification to help prevent students from borrowing more than they need and disburses funds directly to schools so tuition bills get paid on time.

DiscoverStudentLoans.com has tools and information to help students and parents with each step of the process – from exploring financial aid to repaying student loans. Students can apply at DiscoverStudentLoans.com for fixed- or variable-rate loans for undergraduate, health professions, law, MBA and graduate programs.

For more information, visit DiscoverStudentLoans.com or call 1-877-728-3030 anytime to speak with a student loan specialist.

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 www.discoverfinancial.com.

Source: Discover Financial Services

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