Discover Vs Sallie Mae Student Loans

This Sallie Mae vs. A Discover Student Loans comparison will pit lenders against one another to see which provides a better product.

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Two of the biggest private student loan providers in the market are Sallie Mae and Discover. Each offers loans to undergraduates, graduates, and parents.

This Sallie Mae vs. By examining the specifics of each product and highlighting various situations where one lender is superior to the other, the Discover Student Loans comparison will help you decide which lender is best for you.

Sallie Mae vs. Discover Student Loans: At a glance

Variable APR	% – %	% – %
Fixed APR	% – %	% – %
Repayment terms
Cosigner release	After consecutive on-time monthly payments	Not available

The aforementioned product specifics apply to each lender’s undergraduate loan only.

Qualified borrowers have access to private student loan options from both Sallie Mae, the largest private student loan provider in the US, and Discover Student Loans, a well-known national financial institution.

For undergraduate and graduate students, professionals in the fields of dentistry and medicine, as well as those pursuing an MBA or career training, Sallie Mae provides a range of private student loan options.

Students pursuing undergraduate or graduate degrees, professionals in the medical field, MBA candidates, candidates for the bar exam, and trainees are all eligible for Discover loans.

Examine the following examples to determine whether a Sallie Mae or Discover Student Loan would be more appropriate for your needs.

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Which is right for you: Sallie Mae or Discover?

There are many similarities between these two lenders, which rank as two of the biggest private student loan lenders in America. We’ll get those areas out of the way first.

Both Sallie Mae and Discover issue loans to U. S. those who apply with a cosigner who is a citizen or permanent resident, as well as international students

Borrowers who are enrolled or intend to enroll at least half-time in a degree-earning program at an eligible school are eligible for new student loans.

Each new borrower applying for a Sallie Mae loan or a Discover private student loan has their credit history and score evaluated, but if they don’t have enough credit on their own to be approved, a co-signer may be added to their application.

There is no clear winner if you’re looking for low rates and fees. Given that their APR ranges are fairly comparable, as you can see from the table above, you’ll need to request a rate quote from each lender to learn what is being offered.

The same 0 is provided by Discover Student Loans and Sallie Mae. Borrowers who enroll in automatic payments will receive a 25% interest rate reduction.

You can choose the kind of loan you require from both of them because they both give borrowers the option of variable or fixed interest rate loans.

Both lenders similarly do not charge origination, application, or prepayment penalty fees.

The maximum amount a student can borrow from Sallie Mae and Discover undergraduate student loans is 100% of the cost of attendance as determined by the school (as with the majority of private student loan lenders; aggregate loan limits apply).

Based on their underwriting standards, either private lender may approve a student loan for any borrower for a lower amount than the total cost of attendance. Sallie Mae has a minimum loan amount of . Discover Student Loans has a minimum loan amount of .

Borrowers can choose from a variety of repayment options offered by Sallie Mae to help them meet their financial obligations.

Deferred repayment: Under the deferred repayment option, borrowers are not required to make any payments on borrowed funds while they are enrolled in school at least half-time or for a six-month grace period after leaving school. Once the grace period ends, borrowers must pay principal and interest payments per the agreed-upon terms at the time of application.

Fixed repayment: Sallie Mae also offers a fixed repayment option which requires borrowers to repay $25 per month while in school and throughout the grace period.1 After a borrower leaves school, principal and interest payments are required until the loan is repaid in full.

Interest-only repayment: The interest-only repayment option through Sallie Mae requires students to pay the monthly interest on all outstanding student loan balances during their time in school and the grace period. Principal and interest payments are due once the grace period ends. Sallie Mae also provides an option for borrowers to request a 12-month period of interest-only payments upon graduation.

Additionally, Discover undergraduate student loans provide a variety of repayment schedules, including in-school and deferred options. After the grace period, both repayment plans require full principal and interest payments in accordance with the agreed-upon terms.

Fixed payment plan: Requires a $25 loan payment while in school and during the grace period, then full principal and interest payments after school ends.

Deferred repayment: Payments are not required until six months after the borrower leaves at least part-time attendance status or graduates.

Interest-only repayment plan: Borrowers pay any interest charges as soon as the loan is funded, while they attend school.

If you’re adding a cosigner to your loan…

When a cosigner consents to be listed on a loan application, they take on the obligation to see that repayment is made. Your cosigner might have to make payment on your behalf if you, the primary borrower, don’t meet your repayment obligations. Additionally, the cosigner may experience short- and long-term harm to their credit if it is affected.

Some lenders provide cosigner release to assist cosigners in reducing this risk. This enables borrowers who are making their loan payments on time to release their cosigner from responsibility.

After making 12 timely monthly payments, Sallie Mae enables borrowers to request cosigner release. Unfortunately, Discover does not offer this option.

If you’re under 18…

Discover Student Loans is the winner if you’re under 18

While Discover requires borrowers to be at least 16 years old, Sallie Mae requires borrowers to be at least 18 years old.

If you earn good grades…

Borrowers who receive good grades are given a special benefit by Discover Student Loans. If borrowers receive a 3 or higher on all new Discover undergraduate and graduate student loans, they will receive a one-time cash reward. GPA (or equivalent) of zero or better is required for any academic year or loan-eligible term. The reward redemption period is limited.

If you want to track your credit score…

Sallie Mae provides an intriguing benefit if you want to monitor your credit score. The lender’s website offers free access to a quarterly FICO credit score report for borrowers who use Sallie Mae.

Shop around to find the best loan

When it comes to private student loans, Sallie Mae and Discover are both excellent options. Your personal financial situation and the rates you qualify for will determine which option is best for you.

The following resources are listed in case Sallie Mae or Discover aren’t your cup of tea.

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FAQ

Is Discovery good for student loans?

If you’ve used all of your grants, scholarships, and other forms of free money and want a lender that offers a variety of loan types and a loan consolidation option, Discover Student Loans are a good choice.

Does Sallie Mae have good student loans?

Sallie Mae is a four-star lender according to NerdWallet’s student loan rating system, so yes, it’s a good lender for student loans. Low interest rates and flexible repayment options that enable borrowers to pay back loans more quickly and prevent default are given priority in our ratings

What credit score do you need for Discover student loan?

To be eligible for a student loan without a cosigner, borrowers typically need to have credit scores that are at least in the “Good” range (670 and higher). However, your credit score will likely need to be at least in the mid-700s to qualify for Discover’s lowest rates.

What credit score do you need to qualify for Sallie Mae?

You need to have a credit score in the middle 600s to be eligible for a student loan from Sallie Mae. For students looking for competitive interest rates with a reliable cosigner, they are a good choice.