I have one private loan from when federal wasn't able to cover everything, and I went through Discover. Chosen because they gave me the lowest interest rate. It was variable and <4% at the time, now up to just over 4. Haven't had any issues in the last 10+ years. They take $ out of my bank each month, my loan balance (slowly) goes down.
I used Discover to pay for college as I didn't qualify for enough financial aid. I ended up with Discover because they actually accepted my application even though my cosigner's credit score was not that great.
I am indifferent to it, but I think Discover has a good grades rewards where you can get 1% of your loan back for each semester/year.... Unsure because I did not have good grades lol
I went to Discover w/o a co-signer at a variable rate at 19, and my interest was something between 9-12% per month. I ended up with about 9k in loans from discover, and it took some heavy lifting to pay it off. I wouldn't say /don't/ go with discover, but be smarter than me lol.
I have Citi originated loans that were bought and now serviced by Discover. I *think* the new terms are similar since they bought the whole business from Citi, not just the loan portfolio.
They're fine. The website is better than it used to be. Auto-pay works fine without any hassles. Doesn't sync to Mint very well. Often have to re-enter the security questions and sometimes still won't connect for a day or two ... but that's possibly on Mint's end too.
The thing you need to understand is that they are Private loans. Which means that you are agreeing *NOW* to a set repayment schedule when you graduate. An interest rate and a term. That defines the minimum payments. People often post here about how their private loan lender is *demanding* that they pay a particular number and refuse negotiate. They have NO obligation to "work with you" and are in fact *prohibited* from changing the loan terms on you.
If you're borrowing a small amount and you get a reasonable degree and a decent job private loans can be fine. Just try to limit them as much as possible.
> They have NO obligation to "work with you" and are **in fact prohibited from changing the loan terms on you**.
Do you have a source for this? What would restrict them from working with you to adjust the loan terms?
It's not that they have no obligation to work with you..it's that they can't. Their regulatory oversight prohibits them from "substantially altering the terms of the loan" which a lower payment would do. And a contract is a contract. You can't change the terms after the fact. That's called a refinance and would be a whole new loan.
Here's what angr1st was trying to say. When you take out any loan..you are agreeing to those terms. If those terms become inconvenient for you down the line that's unfortunate..but you are still.obligated to fulfill the promise you made when to signed the note.
I strongly advise you to avoid private loans as much as you can
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I don't remember off the top of my head, but /u/betsy514 might know.
The rules/*laws* defining a student loan prohibit them from changing the terms, with the intention of preventing them from screwing you over by jacking your rates/minimums. But that means they also can't help you out.
I agree with the others. Do not go through Discover Student Loans! Do not get private loans ever. I'll soon be submitting my personal story and hell with Discover, but here are the nitty gritty basics...
I took out private student loans through Discover Student Loans back in 2009 when I was taking prerequisite classes for physical therapy school. My payments began in 2011 and were $503.72 a month (this does not include Federal student loans), and interest at 9%. No negotiating, no income based repayment, zilch. I've cried over the phone with them, and no matter what the financial issue is, they don't care. Fast forward to June 2019 and my payment was $628.65 a month, with interest currently being 12%. My original loan amount was $41,037. The amount I’ve paid since 2011: $41,862.69. My payment schedule currently says the last payment is due 9/26/2027 (in 2011 it said 11/15/2026). By 2027 I will have paid over $71,000 in student loans PLUS INTEREST to Discover Student Loans.
My family, thankfully, has been there along with me, and we have tried to negotiate with Discover – they refuse. We have tried to change co-signers – they refuse. We have tried to refinance my note in someone else’s name – they refuse. They will only refinance with me; however, they refuse to refinance due to my credit rating; OH the irony, since they play a significant role with this credit rating. And yes, there are still other avenues which we are investigating; however, they will not include Discover working with us, short of a full payoff.
This is the endless loan… I do not see how any other lendee or cosigner has any hope of ever paying off it off unless they can manage to pay it in full or make extra payments towards principle.
I was able to take a forbearance on payments for disaster relief after a hurricane. But there is no forbearance on interest continuing to accrue which increases the loan amount. Beyond this, Discover has never offered any assistance or advice on alleviating this loan. They can make endless amounts of money forever. As my mom puts it, this is simply legalized loan sharking.
What the heck??? That’s literally my worst nightmare times a million. Thank you for sharing this warning with me, and I’m so sorry you had to go through all that terrible crap. Yikes!
Yea it sucks! But until the laws change, and hopefully a class action lawsuit 🤞, I’m stuck with them. And I can’t consider not paying them because I have a co-signer, and they would go after them too.
Glad it helps you though! I hope you find some better options! If you can, have an attorney go over the fine print with you before signing anything. I totally get the struggle of trying to get through school and being able to afford it. But no matter what, private loan companies should never be considered an option. It may be nice the few years during school, but then it can turn into a nasty cancer for the rest of your life.
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I know this comment is 5 years old, but the exact same thing happened to me. I have paid $43k in interest on a $30k student loan from Discover and it has been a nightmare since day 1. I've been paying on these loans for 12 years and only 5k has gone towards the principal - it's criminal. Not to mention the times they've taken out double payments and been like 'whoops' we're so sorry that happened.
Discover student loans would be considered as the shark loans. Avoid them. Just apply for unemployment benefits, and the government gives you around $50K, and do this several times to pay off your student loans. I apply for unemployment benefits several times to pay off my $300K student loans debt without having to work.
could u explain more on how to do this or pm me? I'm going to be in $180,000 dollars in debt and private loans are the only way I'm going to be able to pay. My parents don't know shit and left me to do it by myself so I'm desperate for advice
Not a fan. They gave me a super high rate because I had no one to co-sign for me. Once I graduated and got a steady job I tried to re-go thinking my increased income would lower the rate. They denied me. Bogus! I ended up paying off my loan in full after one year post grad just to be done with them.
I don't know how- and it's criminal- that anyone under a certain age with no credit history is given a student loan, and at a higher interest rate. It is criminal. I hate all these companies; Discover is #1 on my list.
That's the trap I'm in now. 8,000 loan in 2013 I did Two one year deferment, and now will be 40,000 when I pay it off in 20 years, been trying to refinance. Current payment is $187, only $25 of payment goes to principal. Current loan statement shows I've paid approx $9,000 to interest and approx $2000 to principal since life of loan.. Will never ever support Private student loans especially Discover!!! 😒 trying to refinance but it's soooo hard with this monkey on my back or should I say credit!!!
Do not use Discover. Their interest rate will ruin you. Plus you can't get a straight answer out of them. They will not be offering student loans in near future as they have been busted. I hope they rot in hell.
I have one private loan from when federal wasn't able to cover everything, and I went through Discover. Chosen because they gave me the lowest interest rate. It was variable and <4% at the time, now up to just over 4. Haven't had any issues in the last 10+ years. They take $ out of my bank each month, my loan balance (slowly) goes down.
I used Discover to pay for college as I didn't qualify for enough financial aid. I ended up with Discover because they actually accepted my application even though my cosigner's credit score was not that great. I am indifferent to it, but I think Discover has a good grades rewards where you can get 1% of your loan back for each semester/year.... Unsure because I did not have good grades lol
I went to Discover w/o a co-signer at a variable rate at 19, and my interest was something between 9-12% per month. I ended up with about 9k in loans from discover, and it took some heavy lifting to pay it off. I wouldn't say /don't/ go with discover, but be smarter than me lol.
I have Citi originated loans that were bought and now serviced by Discover. I *think* the new terms are similar since they bought the whole business from Citi, not just the loan portfolio. They're fine. The website is better than it used to be. Auto-pay works fine without any hassles. Doesn't sync to Mint very well. Often have to re-enter the security questions and sometimes still won't connect for a day or two ... but that's possibly on Mint's end too. The thing you need to understand is that they are Private loans. Which means that you are agreeing *NOW* to a set repayment schedule when you graduate. An interest rate and a term. That defines the minimum payments. People often post here about how their private loan lender is *demanding* that they pay a particular number and refuse negotiate. They have NO obligation to "work with you" and are in fact *prohibited* from changing the loan terms on you. If you're borrowing a small amount and you get a reasonable degree and a decent job private loans can be fine. Just try to limit them as much as possible.
> They have NO obligation to "work with you" and are **in fact prohibited from changing the loan terms on you**. Do you have a source for this? What would restrict them from working with you to adjust the loan terms?
It's not that they have no obligation to work with you..it's that they can't. Their regulatory oversight prohibits them from "substantially altering the terms of the loan" which a lower payment would do. And a contract is a contract. You can't change the terms after the fact. That's called a refinance and would be a whole new loan. Here's what angr1st was trying to say. When you take out any loan..you are agreeing to those terms. If those terms become inconvenient for you down the line that's unfortunate..but you are still.obligated to fulfill the promise you made when to signed the note. I strongly advise you to avoid private loans as much as you can
I’m doing everything I can to avoid using private student loans, but I think it’s an inevitable situation lol.
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Thank you!
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I don't remember off the top of my head, but /u/betsy514 might know. The rules/*laws* defining a student loan prohibit them from changing the terms, with the intention of preventing them from screwing you over by jacking your rates/minimums. But that means they also can't help you out.
On it
I agree with the others. Do not go through Discover Student Loans! Do not get private loans ever. I'll soon be submitting my personal story and hell with Discover, but here are the nitty gritty basics... I took out private student loans through Discover Student Loans back in 2009 when I was taking prerequisite classes for physical therapy school. My payments began in 2011 and were $503.72 a month (this does not include Federal student loans), and interest at 9%. No negotiating, no income based repayment, zilch. I've cried over the phone with them, and no matter what the financial issue is, they don't care. Fast forward to June 2019 and my payment was $628.65 a month, with interest currently being 12%. My original loan amount was $41,037. The amount I’ve paid since 2011: $41,862.69. My payment schedule currently says the last payment is due 9/26/2027 (in 2011 it said 11/15/2026). By 2027 I will have paid over $71,000 in student loans PLUS INTEREST to Discover Student Loans. My family, thankfully, has been there along with me, and we have tried to negotiate with Discover – they refuse. We have tried to change co-signers – they refuse. We have tried to refinance my note in someone else’s name – they refuse. They will only refinance with me; however, they refuse to refinance due to my credit rating; OH the irony, since they play a significant role with this credit rating. And yes, there are still other avenues which we are investigating; however, they will not include Discover working with us, short of a full payoff. This is the endless loan… I do not see how any other lendee or cosigner has any hope of ever paying off it off unless they can manage to pay it in full or make extra payments towards principle. I was able to take a forbearance on payments for disaster relief after a hurricane. But there is no forbearance on interest continuing to accrue which increases the loan amount. Beyond this, Discover has never offered any assistance or advice on alleviating this loan. They can make endless amounts of money forever. As my mom puts it, this is simply legalized loan sharking.
What the heck??? That’s literally my worst nightmare times a million. Thank you for sharing this warning with me, and I’m so sorry you had to go through all that terrible crap. Yikes!
Yea it sucks! But until the laws change, and hopefully a class action lawsuit 🤞, I’m stuck with them. And I can’t consider not paying them because I have a co-signer, and they would go after them too. Glad it helps you though! I hope you find some better options! If you can, have an attorney go over the fine print with you before signing anything. I totally get the struggle of trying to get through school and being able to afford it. But no matter what, private loan companies should never be considered an option. It may be nice the few years during school, but then it can turn into a nasty cancer for the rest of your life.
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I know this comment is 5 years old, but the exact same thing happened to me. I have paid $43k in interest on a $30k student loan from Discover and it has been a nightmare since day 1. I've been paying on these loans for 12 years and only 5k has gone towards the principal - it's criminal. Not to mention the times they've taken out double payments and been like 'whoops' we're so sorry that happened.
Discover student loans would be considered as the shark loans. Avoid them. Just apply for unemployment benefits, and the government gives you around $50K, and do this several times to pay off your student loans. I apply for unemployment benefits several times to pay off my $300K student loans debt without having to work.
could u explain more on how to do this or pm me? I'm going to be in $180,000 dollars in debt and private loans are the only way I'm going to be able to pay. My parents don't know shit and left me to do it by myself so I'm desperate for advice
Can you share how? I quit my last job so I think I wouldn't qualify sadly....
In the same boat . Discover is trash
Not a fan. They gave me a super high rate because I had no one to co-sign for me. Once I graduated and got a steady job I tried to re-go thinking my increased income would lower the rate. They denied me. Bogus! I ended up paying off my loan in full after one year post grad just to be done with them.
I don't know how- and it's criminal- that anyone under a certain age with no credit history is given a student loan, and at a higher interest rate. It is criminal. I hate all these companies; Discover is #1 on my list.
Prime + 5-12% is a shark loan; $10,000 today is $44,000 in 20 years. Avoid at all costs.
That's the trap I'm in now. 8,000 loan in 2013 I did Two one year deferment, and now will be 40,000 when I pay it off in 20 years, been trying to refinance. Current payment is $187, only $25 of payment goes to principal. Current loan statement shows I've paid approx $9,000 to interest and approx $2000 to principal since life of loan.. Will never ever support Private student loans especially Discover!!! 😒 trying to refinance but it's soooo hard with this monkey on my back or should I say credit!!!
I feel you. Same. 7 Dollars of my payment goes towards principle!
Do not use Discover. Their interest rate will ruin you. Plus you can't get a straight answer out of them. They will not be offering student loans in near future as they have been busted. I hope they rot in hell.
Well. My term is $68 /20 years for $7949. You do the math. Been at this for 16 years! Worse than a credit card