The Best Alternatives to Discover’s Discontinued Student Loans [2025 Recommendations]

Discover stopped offering new student loans in February 2024, leaving borrowers and future students exploring other options. The company was known for its undergraduate, graduate, parent, and refinancing loans, which featured competitive rates, no fees, and borrower-friendly perks. While Discover no longer provides new loans, it continues to service existing ones.

To support those impacted by this change, we’ve identified top-rated student loan lenders offering flexible terms, competitive rates, and robust borrower protections. Whether you’re funding your education or refinancing debt, these alternatives provide reliable solutions.

What did Discover offer for student loans?

Discover was a trusted name in the student loan industry, providing loans for undergraduates, graduates, parents, and those refinancing existing debt. It also offered degree-specific graduate loans tailored for MBA programs, law school, health professions, medical residency, and bar exam preparation.

Borrowers often chose Discover for its low rates, no fees, and perks like cash rewards for good grades. The loans appealed to students and families looking for straightforward terms and reliable service.

Despite its departure, the alternatives we recommend match or exceed what Discover previously offered. These options provide competitive rates, robust borrower protections, and streamlined application processes to make funding education or managing existing debt easier.

What to do if you hold Discover student loans

If you currently hold Discover student loans, Discover continues to service existing loans. You can manage repayment through your Discover online account, where you can view balances, make payments, and access customer support.

For borrowers with questions or repayment challenges, Discover’s servicing team is available to assist. Be sure to reach out directly for guidance on managing your loan effectively.

The best alternatives to Discover student loans

When Discover exited the student lending market, borrowers lost access to a well-known name offering student loans. Thankfully, several lenders are available to fill the gap, offering competitive rates, borrower-friendly features, and flexible repayment options. Below are our top-rated alternatives, each catering to different borrower needs.

College Ave

Best Student Loans Overall

5.0 _/5

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Why it’s a good alternative to College Ave

College Ave matches Discover’s reputation for simplicity and affordability while going a step further with highly customizable loan terms. Borrowers can choose repayment options tailored to their budget, including deferred, interest-only, or flat monthly payments while in school.

College Ave is also known for its fast application process and clear loan terms, making it an excellent choice for students and parents alike.

Additionally, College Ave offers perks like a 0.25% interest rate discount for autopay and no origination or prepayment fees, aligning closely with the benefits Discover once provided.

Key terms (based on undergraduate loan)

Rates (APR)	3.49% – 15.70%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	10 – 15 years

Loans offered

• Undergraduate
• Graduate, including dental, law, MBA, medical, and health professions loans
• Parent
• Career training

Sallie Mae

Best for Cosigners

4.8 _/5

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Why it’s a good alternative to Discover

Sallie Mae provides robust options for borrowers who need a cosigner, making it a strong alternative for families looking to fund education together. With a cosigner release option after 12 months of on-time payments, Sallie Mae offers flexibility that few other lenders provide.

In addition to its competitive interest rates, Sallie Mae offers unique perks like study tools, scholarship search assistance, and no origination fees. This combination of borrower-friendly terms and added benefits makes Sallie Mae a practical replacement for Discover loans.

Key terms (based on undergraduate loan)

Rates (APR)	3.49% – 15.70%
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	10 – 15 years

Loans offered

• Undergraduate
• Graduate, including MBA, medical, medical residency, health professionals, dental, dental residency and relocation, law school, and bar study loans
• Career training

Earnest

Best Best for Large Loans

4.7 _/5

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Why it’s a good alternative to Discover

Earnest is a great fit for borrowers seeking high loan limits, offering some of the most flexible borrowing options in the market. With no fees, competitive rates, and the ability to customize repayment terms, Earnest empowers borrowers to take control of their financial future.

Borrowers can also benefit from Earnest’s precision pricing model, which allows them to adjust repayment terms in small increments to find the best monthly payment. This level of flexibility makes Earnest an ideal replacement for those who appreciated Discover’s straightforward lending experience.

Key terms (based on undergraduate loan)

Rates (APR)	3.69 – 16.85
Loan amounts	$1,000 – 100% of certified costs
Repayment terms	5, 7, 10, 12, or 15 years

Loans offered

• Undergraduate
• Graduate, including MBA, medical, and law school loans
• Parent

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To learn more about these recommendations and our other top-rated student loan lenders, view our best private student loans page.

The best alternatives to Discover refinance student loans

When Discover stopped offering new student loans in February 2024, it also exited the student loan refinancing market. This means that if you’re a current Discover borrower seeking to refinance for a better interest rate or different repayment terms, you’ll need to explore other lenders.

Fortunately, several reputable refinancing lenders offer competitive rates, flexible terms, and borrower-friendly features. Below, we’ve highlighted the top-rated alternatives to Discover refinancing loans.

SoFi

Best Overall

5.0 _/5

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Why it’s a good alternative to Discover

SoFi has established itself as a leader in student loan refinancing, offering low rates, flexible repayment terms, and no fees. Its fully online application process is fast and straightforward, making it easy for borrowers to lock in competitive rates.

In addition to financial perks, SoFi provides access to exclusive member benefits, such as financial planning tools and educational resources. These extra features make SoFi a standout choice for those seeking more than just a loan.

Key terms

Rates (APR)	4.49% – 9.99% w/ autopay
Loan amounts	$1,000 – 100% of outstanding balance
Repayment terms	5, 7, 10, 15, or 20 years

Credible

Best for Comparison Shopping

4.8 _/5

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Why it’s a good alternative to Discover

Credible isn’t a direct lender but an online marketplace that allows you to compare multiple refinancing offers from top lenders. This transparency makes it an excellent choice for borrowers who want to shop around for the best rates and terms.

Credible also guarantees that its platform is free to use and won’t impact your credit score to view initial offers. With its user-friendly interface and rate comparison tools, it’s a practical alternative for anyone who valued Discover’s simplicity.

Key terms

Rates (APR)	3.85%% – 13.30%
Loan amounts	Varies by lender
Repayment terms	Varies by lender

ELFI

Best Personalized Support

4.7 _/5

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Why it’s a good alternative to Discover

Education Loan Finance (ELFI) is known for its hands-on customer service, providing every borrower with a personal loan advisor to guide them through the refinancing process. This level of support is especially valuable for borrowers navigating refinancing for the first time.

ELFI also offers competitive rates, no application or origination fees, and flexible repayment terms, making it a great choice for those looking to save money and receive tailored assistance.

Key terms

Rates (APR)	4.86% – 8.44%
Loan amounts	$10,000 – 100% of outstanding balance
Repayment terms	5, 7, 10, 15, or 20 years

How to refinance your Discover student loans

Refinancing your Discover student loans is a straightforward process, but it involves choosing a new lender to take over your current loan. Here’s a simple step-by-step guide:

1. Check your credit score
   Most refinancing lenders require good to excellent credit. If your score needs improvement, consider working on it before applying.
2. Compare lenders
   Use tools like Credible to compare rates, repayment terms, and borrower benefits across multiple lenders.
3. Prequalify for offers
   Many lenders allow you to prequalify to see estimated rates without impacting your credit score.
4. Submit an application
   Once you’ve chosen a lender, complete the application, providing personal information, income details, and your current loan information.
5. Accept the new loan terms
   If approved, review the new loan agreement carefully and accept the terms.
6. Repay your new loan
   Your new lender will pay off your Discover loan directly, and you’ll begin repayment with your new lender according to the agreed terms.

By refinancing your student loans, you can secure lower rates, adjust your repayment plan, or both—potentially saving thousands over the life of your loan.

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To learn more our refinancing recommendations and how to choose a lender to refinance your Discover student loans, check out our best student loan refinance page.

Recap of the best alternatives to Discover student loans and student loan refinance