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      July 9, 2020

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Credible vs Discover Student Loans

To help you find the Best Student Loans, TopConsumerReviews.com provides you with an in-depth comparison of Credible and Discover Student Loans.

To see ALL of our reviews for the Best Student Loans, please Click Here

Apply for Your Student Loan at SunTrust Today As the costs of higher education rise, so does the need for student loans. While some individuals are eligible for federal loans, those loans don't always cover the full cost of getting an education - not just tuition and room/board, but books, laptops, transportation and other expenses. And, people who are ineligible for federal loans don't necessarily have overflowing savings accounts to match their college or university costs.

Private student loans are the way that many students close that gap. On average, students have nearly $40,000 in student loan debt at the time of graduation; without those funds, their aspirations of being a teacher, engineer, or social worker may have been put on hold indefinitely.

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Best Reviews

2020

Student Loan Reviews

4 stars
Credible

CREDIBLE

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Features:

  • No application or origination fees
  • No prepayment penalties
  • No service fees
  • Customer service available 7 days a week: 866-540-6005
  • 3-way phone support with lenders and borrowers
  • Apply with multiple lenders using a single application

Credible wants to save you time when it comes to applying for student loans. Instead of having to complete one application after another, hoping for great rates and reasonable terms (with no fine print or "gotcha!" moments), you enter your details one time and get matched with reputable lenders. Credible works as a connection service: they vet all of their lenders to ensure that they don't charge application or origination fees, and Credible is free for you to use too.

8 student loan partners

At the time of our most recent visit to their site, Credible offered student loans through eight partners (some of which you'll find evaluated in more depth in our other reviews):

  • Ascent
  • Citizens Bank
  • College Ave
  • Discover Student Loans
  • EDvestinU
  • INvestEd
  • MEFA
  • Sallie Mae

On loans available through those partners, terms ranged from 5 to 20 years. Fixed interest rates were between 3.95% APR and 12.49% APR, while variable rates ranged from 1.79% APR to 10.37% APR. All of them, with the exception of Sallie Mae, offered student loans for both undergraduate- and graduate-level studies.

Cosigner helps

Get started with Credible by selecting whether you're a student or a cosigner. Helpful hint: Credible says you're three times more likely to qualify if you have a cosigner. We found that to be true; when we started the process just as a student requesting a modest loan, we weren't given any results until we added a cosigner. Either way, the process takes about three minutes to complete. You can apply for up to one year of studies at a time, and you'll enter that information along with your expected graduation year, the name of your school and degree type, and so on. Surprisingly, we weren't asked to provide our Social Security number during the application process. That happens after you select the loan you want and finalize it with the actual lender.

Best Student Loans

Lender options

We were only prequalified for loans through Citizens Bank, and we were given 18 options ranging from fully-deferred until after school to interest-only plans while still in school. We didn't meet the criteria for five of Credible's lending partners, and we were told we'd have to apply directly with two others in order to see their rates. So much for only having to fill out a single application!

Best rate guarantee - for personal loans

You might have noticed that Credible offers a Best Rate Guarantee, offering you $200 if you find a better rate with another lender. However, if you look at the fine print in the terms and conditions, this guarantee only applies to personal loans. We're pretty sure that Student Loans are not eligible, so don't get your hopes up too soon.

Excellent reputation

Credible stacks up nicely when considering their reputation. With both an "A+" rating and accreditation from the Better Business Bureau, plus thousands of 4- and 5-star reviews from student loan recipients, it's easy to see that the service is providing value to users. And, while it's true that it wasn't as simple as a single application for every possible loan, it was still much more convenient to know right away that we wouldn't be eligible for student loans through certain lenders - rather than applying for each one and being rejected. (Who needs that kind of negativity, right?)

Overall, this service gives you an easy way to check out the prospects of getting a student loan from up to eight different lenders with just a few clicks of the keyboard. That's a great time-saver and could help you get the money you need for your studies. The only caveat is that our highest-ranked provider of student loans isn't included as one of their partners, so we'd encourage you to compare the offers you get with Credible against our first-place lender as well.

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3.5 stars
Discover Student Loans

DISCOVER STUDENT LOANS

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Features:

  • No application or origination fees
  • No prepayment penalties
  • No late fees
  • No payments required until 6 months after leaving school
  • Variable interest rates starting at 3.49% APR
  • Fixed interest rates starting at 6.24%
  • Several rewards programs, including good grades and auto debit
  • Customer service: 800-STUDENT (788-3368)

If you think "credit cards" when you hear the name Discover, you'd be right - but they are also one of the nation's largest lenders when it comes to private student loans. Whether you're studying as an undergraduate, heading to graduate school, or need a loan to cover your residency, MBA, or period of study for the bar exam, Discover has a student loan for you.

Undergraduate loan eligibility terms

While eligibility terms depend on the loan you're seeking, here's what you need for a Discover Undergraduate Loan:

  • Enrollment at least half-time in a Bachelor's or Associate's program, seeking a degree
  • Satisfactory academic progress (defined by your school)
  • U.S. citizenship or permanent resident status (or a cosigner who is)
  • Credit check
  • 16 years or older

You can borrow up to 100% of the cost of attendance at your school, including books, housing, tuition and more; the amount will be certified by your school, ensuring that you don't borrow more than you'll actually need.

Unique rewards

It's also no surprise that Discover has rewards that will remind you of their Cashback Bonuses offered with their credit cards. Like many lenders, Discover will give you a .025% interest rate reduction if you enroll in automatic payments during your repayment term. Also, if you get a minimum GPA of 3.0, you can qualify for a one-time cash reward of 1% of your total disbursed loan principal amount. Depending on the size of your loan, that could cover quite a few textbooks!

Low monthly payments

Other benefits of student loans through Discover are low monthly payments ($25/month) if you choose an in-school repayment option, deferment periods if you're on active military duty or serving in a public service organization or medical residency, and an assistant department if you're having financial difficulties that are impacting your ability to repay your student loans.

Loan servicing issues (in the past)

Although Discover Student Loans' perks are attractive, it's important to be aware of their history in the student loans market. Back in 2015, Discover Bank was ordered to pay a fine of $2.5 million dollars to a penalty fund established by the Consumer Financial Protection Bureau, along with returning $16 million to over 100,000 borrowers. The reasons for the fine included illegal debt collection tactics, such as early-morning and late-night calls to borrowers, illegal servicing practices, and other issues. While it appears that Discover has cleaned up its act in the meanwhile, we can't ignore that their loan servicing has had significant issues in the past.

Overall, Discover Student Loans offer significant discounts and cash bonuses to borrowers with competitive terms and rates on their student loans. We give them a good rating that could easily improve as Discover continues to show improvement in honesty and ethics when servicing student loans.

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Continued from above

Fortunately, there are many lenders who want to make it as affordable and simple as possible to complete undergraduate and graduate-level studies. Some represent well-known, established financial institutions, while others work directly with networks of community banks to get much-needed cash into the hands of eager learners.

Comparing offers from lenders can be as easy as going online; in a matter of minutes and mouse clicks, you can see a variety of interest rates, repayment terms, and other details of each program for which you are eligible. This saves you significant time compared with going hat in hand to your local bank or other lending institution, hoping that they will say yes to your loan application.

When deciding on which lender to use for your student loan, you should consider the following factors:

  • Interest rates. The higher your interest rates, the more you pay over the life of the loan. Does the lender have rates that are competitive? Does the lender offer you the choice between fixed and variable rates?
  • Loan terms. What is the repayment term? Does it give you enough time to get a good job and pay it back? Can you pay it off in advance with no penalty?
  • Discounts. Can you get your interest rates lowered by setting up automatic payments from your checking account? Will you get any perks for having a relationship with the lender in other ways, such as a checking account or credit card?
  • Reputation. Some lenders have a solid history of working with borrowers, while others have a not-so-great track record when it comes to customer service after the loan has been disbursed. How does this lender measure up?

TopConsumerReviews.com has reviewed and ranked the best Student Loan providers available today. We hope this information helps you to get the money you need for your studies right away!

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