Discover Student Loans has announced new fixed and variable interest rates for student loan applications submitted on or after June 1, 2014. The new changes include a reduction in the lowest fixed and variable interest rates. Fixed interest rates now start at 5.99 percent APR for undergraduate, health professions and residency, law and bar exam, MBA and graduate loans. Variable interest rates are now based on three month LIBOR and start at 2.99 percent APR.
In addition to new interest rates, Discover Student Loans also will provide students a choice between making a fixed $25 monthly payment while attending school or deferring payments while enrolled in school at least half-time. The new in-school payment option cultivates students' financial responsibility and allows them to start paying their loan immediately. They will also get an interest rate reduction if they choose to enroll in the auto-debit reward. For more information on repayment options, interest rates and APR examples, visit DiscoverStudentLoans.com/Rates.
“Discover Student Loans believes in the value of an education and recognizes that students and families are looking for affordable and easy-to-understand options when paying for college and graduate school,” said Danny Ray, president of Discover Student Loans. “Reducing our interest rates, introducing new repayment methods and providing additional cost-saving opportunities are just some of the ways we’re helping students and their families borrow responsibly.”
All Discover Student Loans have zero fees, including zero origination fees, zero prepayment fees, zero late payment charges and zero returned payment fees. Discover Student Loans cover up to 100 percent of school-certified college and graduate school costs, including tuition, housing, books and living expenses.Students can find additional opportunities to save on student loans from Discover including:
- 1% Cash Reward for Good Grades : A unique program that provides both undergraduate and graduate students who achieve at least a 3.0 grade point average or equivalent with a cash reward. The one-time reward is equal to a full one percent of the loan amount of each new Discover student loan.
- Auto Debit Reward : Students that enroll in automatic debit payments during repayment are able to reduce their interest rate by 0.25 percent.
- Discover MBA Loan with GMAT® Test-Taker Reward : Graduate business students who have taken the Graduate Management Admission Test ® (GMAT ®) exam within the past 5 years have an opportunity to receive a 0.25 percent interest rate reduction on new Discover MBA Loans.