Loans

Discover Student Loan or Sallie Mae Student Loan: which is best?

Graduating is a huge accomplishment, and if you need a little help from a private student loan you should pick the best one. This post will present you with two excellent options. Read the review about them to make your decision.

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Discover vs. Sallie Mae Student Loan: which is the one for you? 

Human Hand Holding Graduation Hat And Golden Coins
Discover Student Loan or Sallie Mae Student Loan: which one is better? Source: Adobe Stock.

What aspects should you consider if you’re trying to make a decision between Discover Student Loan and Sallie Mae Student Loan? This post will clarify everything about them to help you pick one.

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If you need a student loan to pay for your studies, you need to understand everything you’re signing for, as it can turn into a burden if you don’t choose wisely.

These two options are some of the best in the market, so, your task is just to pick the best of the best ones.

Discover Student Loan: how does it work?

You probably know Discover as a credit card issuer. In fact, their cards are some of the best, including some good options for students and people who are still building their credit history.

But among their other products, they do offer a large range of student loans. They even got an award for their undergraduate student loan.

They also offer graduate, health professions, MBA, and many others.

Highlights

  • Awarded undergraduate loan in 2022, according to The Bankrate Awards. 
  • Allows you to choose a co-signer, which improves your chances of being approved.
  • Large range of loan options.
  • No application fee, origination fee, or late payment fee.
  • Rewards good grades.
  • Discount in the interest rate if you enroll in autopay.

Pros

Just like its credit cards, the Discover student loans are also outstanding. It charges no fee at all. Most lenders charge a lot of fees to open your loan process, such as programming fees, origination fees, etc.

They don’t even charge a late fee when you delay payment. All you have to pay is the interest rate, which can be fixed or variable.

Discover will also charge no fees for prepayment, so if you can pay it all sooner than you expected, great!

If you are a good student, you’ll be rewarded. Discover will give you a cash reward for your good performance. Keep up the effort to have good grades and you’ll get a cash bonus.

Cons

Discover does not allow a prequalification, so you can not avoid the credit check. This is not good if you or your cosigner are working to improve or fix a damaged credit score.

And as with most private student loans, Discover loans for students are not better than Federal Student Loans. Even charging no fees, Discover can not beat the Federal loan’s payment conditions.

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Sallie Mae Student Loan: how does it work?

Students in university
How does the Sallie Mae student loan work? Source: Adobe Stock.

If you’re looking for a private student loan to cover all of your costs, Sallie Mae is a great option.

Unlike Federal Loans that have a cap, with Sallie Mae, you’ll have enough to pay for everything related to your studies. 

I doesn’t matter if you’re an undergraduate or a graduate student. Salli Mae has a loan option for everyone.

You can use it to pay for your tuition, book, transportation, supplies, room, and all you need to get your degree.

Highlights

  • Loan for every type of graduation.
  • If you’re a graduate, you can apply for a loan if you are studying for a bar exam or medical residency.
  • Choose a fixed or a variable rate.
  • Different payment options: deferred, fixed, or interest. 

Pros

Sallie Mae Student Loans are highly customizable. You have many options for types of loans, repayment options, and interest rates. 

When you contact Salli Mae looking for a loan, they’ll encourage you to use it reponsibly and to apply for a federal student loan first.

Many people fall into enormous snowballing debts with student loans, so remember to budget and save for your repayment.

As private loans ask for a good credit score for approval, it can be hard to get one if you’re new to credit or have a poor one. But the good news is that you can pick a co-signer with hoog creditworthiness.

You will pay no origination fee to get this loan. This is great news because every dollar you can save for your repayment is worth it. 

Cons

Sallie Mae is a top lender for students and has hardly any cons. But as a private student loan, there are some drawbacks.

You can not refinance a student loan made with Sallie Mae. Also, there is no prequalification option, so you’ll get a hard inquiry on your credit score just to check your offer.

Which one should you choose for your loan?

woman african american pretty girl happy online virtual learning distance
Which loan should you choose? Source: Adobe Stock.

When it comes to student loans, one thing is certain: a Federal Loan will always be a better choice. Even private lenders will recommend you to apply for it before getting a private loan.

But when it comes down to this option, both Discover Student Loan and Sallie Mae Student Loan can be found on the TOP choices for getting extra financial help to pay for college. 

They are very similar,r and everything will come down to your creditworthiness and your repayment conditions. This will be the major factor and each offer will vary according to it.

Discover has a great program that rewards good grades, which is great if you’re a good student.

Salli Mae has a large variety of repayment and loan options. As it is more customizable, it gets easier to find the best loan offer for your situation.

And while you’re at college, you’ll probably need a credit card too. We’ve made a list of some of the best credit cards for students, and you can read it on the following.

best cards for students

Best cards for students

Don't settle for a bad credit card. You can get one of the best credit cards for students.

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