Private student lenders are increasingly offering fixed-rate products to borrowers attracted to the stability of the loan.
Discover Student Loans is the latest lender to announce a new fixed-rate loan product for undergraduate and graduate students with rates as low as 6.79% APR.
The new fixed-rate loans are designed to have rates comparable to unsubsidized Stafford and Parent PLUS Loans without the upfront origination fees of up to 4%, the lender said in a statement yesterday.
“For students who want the convenience and simplicity of knowing what their monthly payments will be, Discover’s new fixed-rate loans are a great option,” said Steve Olszewski, senior vice president of student loans for Discover. “Our mix of fixed- and variable-rate loans gives borrowers the ability to choose a loan that better meets their unique circumstances.”
The lender follows Sallie Mae, which announced its new fixed-rate loan offering earlier this month. The new fixed interest rates, available to undergraduate and graduate students at degree-granting institutions on May 21, will start at 5.75% with no origination fees.