April 4, 2022
- A fixed interest rate is set at the time of application and does not change during the life of the loan unless you are no longer eligible for one or more discounts.
- A variable interest rate may change quarterly during the life of the loan, if the interest rate index changes. This may cause the monthly payment to increase, the number of payments to increase, or both.
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.
Please note, if you have multiple variable rate private student loans originated from Discover, your interest rate may be based on different rate indexes.
What is an interest rate?
- The interest rate is used to calculate the actual amount of interest that accrues on your student loan.
- For example, if your principal loan balance is $10,000 and your interest rate is 10% (no payments are due and you make no payments), then your loan will accrue $1,000 (= $10,000 x 0.10) in interest in one year.
What is an APR?
- The Annual Percentage Rate (APR) takes into account the interest rate, fees (if any), length of your deferment period and how interest capitalizes.
- The APR is a number you can use to compare loans from different lenders since their interest rates, fees, deferment options and capitalization policy may differ https://www.badcreditloanshelp.net/payday-loans-al.