Each lender has its own criteria, terms, and features for its loans, so you should shop around and compare different offers before you choose one.
Some of the factors that you should look for when comparing private student loans are:
- Interest rate: The interest rate is the percentage of your loan amount that you pay in interest each year. It is one of the main factors that determines how much your loan will cost you over time. Private student loans can have either fixed or variable interest rates. Fixed interest rates stay the same throughout the life of your loan, while variable interest rates can change based on market conditions. Variable interest rates may start lower than fixed rates, but they can also increase over time and make your payments unpredictable. You should compare the APR (annual percentage rate) of each loan, which includes the interest rate and any fees, to get a better idea of the true cost of each loan.
- Fees: Fees are charges that you have to pay to get or maintain your loan. Some common fees that private lenders may charge are application fees, origination fees, late fees, prepayment fees, and returned payment fees. These fees can add up and increase the cost of your loan. You should look for a lender that does not charge any fees, such as Discover Student Loans, or that charges minimal fees that are reasonable and transparent.
- Repayment options: Repayment options are the choices that you have for how and when you pay back your loan. Some common repayment options that private lenders may offer are immediate repayment, interest-only repayment, deferred repayment, and partial repayment. Each option has its pros and cons, depending on your financial situation and goals. You should look for a lender that offers flexible and customizable repayment options that suit your needs and preferences. You should also check if the lender offers any grace period, deferment, or forbearance options in case you need to pause or reduce your payments due to financial hardship.
- Rewards and incentives: Rewards and incentives are benefits that you can get from your lender for meeting certain criteria or taking certain actions. Some common rewards and incentives that private lenders may offer are cash rewards for good grades, interest rate reductions for automatic payments, referral bonuses, loyalty discounts, and cosigner release options. These benefits can help you save money, pay off your loan faster, or improve your credit score. You should look for a lender that offers generous and attainable rewards and incentives that add value to your loan.
- Customer service: Customer service is the quality and availability of the support that you can get from your lender when you have any questions or issues regarding your loan. You should look for a lender that offers 24/7 support, online access, and US-based loan specialists who are friendly and knowledgeable. You should also check the reviews and ratings of the lender from other customers and third-party sources, such as the Better Business Bureau, Trustpilot, and Consumer Affairs.
To help you compare Discover Student Loans with other loans, you can use online tools and resources, such as loan calculators, comparison charts, and guides.
