Applicants may have the choice of a fixed or variable interest rate loan.
Interest rates for private student loans are credit based. Therefore, the interest rate is not the same for every borrower. Our lowest rates are only available to applicants with the best credit. The APR will be determined after an application is submitted. It will be based on credit history, the selected repayment option, and other factors, including a cosigner’s credit history (if applicable). If a student does not have an established credit history, the student may find it difficult to qualify for a private student loan on their own or receive the lowest advertised rate.
Application submission time period | Index |
---|---|
Prior to June 1, 2014 | Prime |
June 1, 2014 - November 13, 2021 | 3-Month USD IBOR Consumer Cash Fallback (previously LIBOR) |
On or after November 14, 2021 | 3-Month CME Term SOFR |
Please note, if you have multiple variable rate private student loans originated by Discover, your interest rate may be based on different rate indexes.
Deferment Period (45 months in school + 6 months grace) |
Interest Rate | Repayment (180 months of equal payments) |
Life of Loan (231 Months) |
|
---|---|---|---|---|
Repayment Option | Fixed Rate | Monthly Payment | Total Loan Cost | APR |
Deferred Payment ($0 monthly) |
9.99% | $152.18 | $27,395 | 9.33% |
In-School Payment ($25 fixed monthly) |
9.99% | $138.40 | $26,190 | 9.51% |
In-School Payment (Interest-only monthly) |
9.99% | $108.11 |
$23,538 | 9.98% |
Deferment Period (21 months in school + 9 months grace) |
Interest Rate | Repayment (240 months of equal payments) |
Life of Loan (270 Months) |
|
---|---|---|---|---|
Repayment Option | Fixed Rate | Monthly Payment | Total Loan Cost | APR |
Deferred Payment ($0 monthly) |
8.99% | $109.37 | $26,252 | 8.79% |
In-School Payment ($25 fixed monthly) |
8.99% | $102.59 | $25,375 | 8.85% |
In-School Payment (Interest-only monthly) |
8.99% | $90.42 |
$23,801 | 8.98% |
The following examples depict a typical fixed APR, monthly payment, and total payments during the life of a $10,000 private loan with one disbursement. Your actual student loan interest rate may be different than the rates in these examples.
Deferment Period (9 months in school + 9 months grace) |
Interest Rate | Repayment (240 months of equal payments) |
Life of Loan (258 Months) |
|
---|---|---|---|---|
Repayment Option | Fixed Rate | Monthly Payment | Total Loan Cost | APR |
Deferred Payment ($0 monthly) |
8.74% | $99.87 | $23,966 | 8.65% |
In-School Payment ($25 fixed monthly) |
8.74% | $96.11 | $23,492 | 8.68% |
In-School Payment (Interest-only monthly) |
8.74% | $88.33 |
$22,505 | 8.74% |
Deferment Period |
Interest Rate | Repayment (180 months of equal payments) |
Life of Loan (180 Months) |
|
---|---|---|---|---|
Repayment Option | Fixed Rate | Monthly Payment | Total Loan Cost | APR |
Immediate Repayment |
12.24% | $121.53 | $21,876 | 12.24% |
Deferment Period |
Interest Rate | Repayment (120 months of equal payments) |
Life of Loan (120 Months) |
|
---|---|---|---|---|
Repayment Option | Fixed Rate | Monthly Payment | Total Loan Cost | APR |
Immediate Repayment |
7.99% | $121.25 | $14,550 | 7.99% |
Deferment Period |
Interest Rate | Repayment (240 months of equal payments) |
Life of Loan (240 Months) |
|
Repayment Option | Fixed Rate | Monthly Payment | Total Loan Cost | APR |
Immediate Repayment |
8.74% | $88.29 | $21,188 | 8.74% |
The variable rate for student loan applications received on or after November 14, 2021, is based on the 3-Month CME Term SOFR index. The 3-Month CME Term SOFR (Secured Overnight Financing Rate) is a rate index based on what the market expects rates to be over the next three-month time period. You can find more information on the 3-Month CME Term SOFR at CME Group.
CME Term SOFR is different from Overnight SOFR and associated SOFR Averages, which are based on historical performance of Overnight SOFR. More information is available at the Federal Reserve Bank of New York.
Discover Student Loans may adjust the variable interest rate quarterly on each January 1, April 1, July 1, and October 1 (each an “interest rate change date”), based on the 3-Month CME Term SOFR rate available for the day that is 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or 0.00125) or 0%, whichever is greater. If the 3-Month CME Term SOFR rate is less than zero percent, then the index will be deemed to be zero percent (as stated in the promissory note) for purposes of calculating your interest rate.
Rates are rounded up to the nearest one-eighth of one percent (0.125% or 0.00125) or 0%, whichever is greater. The 3-Month CME Term SOFR index is used for loan applications received on or after November 14, 2021.
Quarter | 3-Month CME Term SOFR | Available from CME Group on |
---|---|---|
Jul 1 - Sep 30, 2024 | 5.375% | Jun 17, 2024 |
Apr 1 - Jun 30, 2024 | 5.375% | Mar 15, 2024 |
Jan 1 - Mar 31, 2024 | 5.375% | Dec 15, 2023 |
Oct 1 - Dec 31, 2023 | 5.50% | Sep 15, 2023 |
Jul 1 - Sep 30, 2023 | 5.25% | Jun 16, 2023 |
Apr 1 - Jun 30, 2023 | 4.875% | Mar 17, 2023 |
Jan 1 - Mar 31, 2023 | 4.625% | Dec 16, 2022 |
Oct 1 - Dec 31, 2022 | 3.50% | Sep 16, 2022 |
Jul 1 - Sep 30, 2022 | 2.00% | Jun 16, 2022 |
Apr 1 - Jun 30, 2022 | 0.625% | Mar 17, 2022 |
Jan 1 - Mar 31, 2022 | 0.125% | Dec 17, 2021 |
Oct 1 - Dec 31, 2021 | 0.125% | Sep 16, 2021 |
View information about 3-Month USD IBOR value.
View information about 3-Month LIBOR value (retired as of June 30, 2023).