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As of January 31, 2024, Discover is no longer accepting new student loan applications. Existing customers can continue to log in and track payment status through the lender’s service portal.
Billing and tax documents will continue to be available through the Discovery Student Loan Account Center until April 2025. Students looking for alternatives can find several other student loan lenders who offer the same simple application process, rewards for good performance, and the flexible repayment options Discover offers.
Alternatives to discover student loans
Undergraduate and graduate students can choose from a variety of other similar bank-backed student loan options to fill the gap left by withdrawal of discoveries from student loan lending.
| Important features | Sally May | Citizen Bank | Sophie |
|---|---|---|---|
| Bankrate score | 4.6 | 4.6 | 4.8 |
| Loan amount | 1,000 to 100% attendance costs | $1,000 to $225,000 | 100% total attendance costs |
| April |
Repaired: 3.49%–15.49% variable: 4.54%–14.71% |
Repaired: 3.99%–15.59% variable: 4.97%–15.59% |
Repaired: 3.54%–15.99% variable: 4.64%–15.99% |
| Terminology length | 10-15 years | 5-15 years | 5-15 years |
| Loan type | Faculty, Alumni, MBA, Medical, Medical Resident, Dental, Dental Resident, Health Professional, Law, Bar Research | Faculty, Alumni, Law, Health Occupation, MBA, Bar Research, Medical Resident, Parent, Refinance | Faculty, Alumni, Law, MBA, Parent, Refinance |
Sally May
Sallie Mae offers loans up to the full cost at competitive fees to students and eligible students for graduate degrees. Undergraduate borrowers can choose terms for up to 15 years, while graduate degree borrowers can choose terms for up to 20 years to reduce their monthly payments.
An impressive array of Sally May’s graduate degree loans helped us win Bankrate’s Best Graduate Student Loan Lenders of 2025. It also offers unusual flexibility with fundraising options for students under half-hours, even students taking part in online or summer courses and even enrolling in professional accreditation courses.
Citizen Bank
Citizens Bank offers both new and refinance loan options for undergraduate and graduate students. Its low fees and 20-year term options for parent loans helped me win the Bank Rate’s 2025 Best For Parent Awards.
One place that stands out from Sallie Mae and other lenders is the refinance loan options offered to both graduates and undergraduate borrowers. Qualified borrowers may be eligible for a multi-year approval program that saves students the stress of having to reapply to fund each grade.
Sophie
SOFI offers student loan borrowers a variety of online graduate and undergraduate funding options, including refinance options. Its flexible repayment terms and competitive rates are just the reason why Bank Rate won the 2025 borrower with a good credit award.
SOFI offers several outstanding perks, including autopayment discounts and cash bonuses for good performance. Medical residents may get extra breaks if they qualify for a special low payment for SOFI while completing their residence.
What discovered student loans?
According to John Owen, Interim CEO of Discover, its board has decided to halt the creation of new loans and transfer services to focus on core banking products and other business priorities. In a press release on January 31, 2024, Owen shared:
“During a recent review, the board determines that discovery student loan sales and service transfer investigations are in line with those priorities, allowing Discover to focus on its core banking products, leverage growth opportunities and provide long-term shareholder value.”
In July 2024, Discover announced the sale of its private student loan portfolio. The company’s online portal remains active for borrowers with existing student loans.
Conclusion
There are plenty of student lenders to choose from similar offer rates, terms and benefits as well as discoveries. Once you find the federal loan you are eligible, it is best to compare private student loan options and supplement what you need to pay for your university expenses.
Be aware of special benefits such as good grade discounts, extra difficult flexibility, and refinance options. One note: The best APRs for private student loans are reserved for borrowers with a high credit score, so if you have a low score or no credit, you may need a trustworthy co-signer.
