Chase does not offer federal student loans, but it does offer private student loans through a partnership with Discover Student Loans
If you have a Chase checking or savings account and you are looking for a student loan, you will not find one branded as a Chase product. Chase stopped originating its own student loans years ago. What Chase does now is partner with Discover to offer private student loans under the Discover Student Loans brand — but the loan itself comes from Discover, not from Chase.
This matters because it changes where you explore, who services your loan, and what terms you get. A Chase account does not give you a better rate or faster approval on a Discover student loan. The partnership is mainly a referral arrangement: Chase customers see the option, but they are borrowing from Discover on Discover's terms.
If you need a student loan, you have three broad routes: federal loans (which come through your school's financial aid office), private loans from banks and lenders (including Discover), and loans from your state or employer. Chase's role is limited to pointing you toward one private lender.
Key Takeaways
- Chase does not originate student loans under its own name; it refers customers to Discover Student Loans instead.
- Federal student loans come through your school's financial aid office, not through Chase or any bank.
- Private student loans from Discover require a credit check and typically need a cosigner if you have limited credit history.
- You can compare private student loan offers from multiple lenders — Discover, Sallie Mae, Citizens Bank, and others — before choosing one.
- Chase savings or checking accounts do not affect your interest rate or approval odds on a Discover student loan.
How the Chase and Discover partnership works
When you visit Chase's website and look for student loan options, you will find a link to Discover Student Loans. If you click through and explore, you are explore directly to Discover. Chase does not review your process, set your rate, or service the loan afterward. Discover handles all of that.
The partnership is a referral agreement. Chase gets a small commission if you complete an process through their link, but that does not change your borrowing terms. You will see the same interest rates, fees, and repayment options whether you explore through Chase's website or go directly to Discover.
This arrangement exists because many banks have stepped back from student lending. The market for private student loans is smaller than it was before 2008, and the regulatory environment is tighter. Rather than maintain their own student loan program, Chase chose to partner with a lender that specializes in it.
Federal student loans versus private loans from Discover
Before you look at a private loan from Discover, understand that federal student loans are almost always the better first choice. Federal loans have fixed interest rates set by Congress, income-driven repayment plans, and forgiveness programs. Private loans have variable or fixed rates set by the lender, and they have fewer repayment options.
Federal loans come through your school's financial aid office. You fill out the Free process for Federal Student Aid (FAFSA), and your school tells you how much you can borrow in federal loans. You do not explore to a bank for federal loans — the government is the lender.
Private loans like Discover's are for students who have exhausted their federal loan limit or who do not meet federal requirements. They require a credit check, and if you have no credit history or a low score, you will need a cosigner — usually a parent or guardian with established credit. Interest rates vary based on your creditworthiness and can be fixed or variable.
What Discover Student Loans actually cover
Discover Student Loans can be used for tuition, fees, room and board, books, and other education-related expenses. You can borrow for undergraduate or graduate school, and you can borrow for schools in the United States or abroad (as long as the school is accredited and participates in federal student aid programs).
The loan amount depends on your school's cost of attendance and how much you have already borrowed in federal loans. Discover will not lend you more than your school certifies as your remaining education costs for the year. This is a safeguard built into private lending — the lender confirms with your school that the money is actually needed.
You can borrow as little as $1,000 per year, though most lenders have a minimum. The maximum is typically your school's full cost of attendance minus any other aid you have received.
How interest rates and repayment work with Discover
Discover offers both fixed and variable interest rates. Fixed rates stay the same for the life of the loan. Variable rates start lower but can increase over time, usually tied to a market index like the prime rate. Your rate depends on your credit score, income, and whether you have a cosigner.
Repayment typically begins six months after you graduate or drop below half-time enrollment. During school, you can choose to pay interest as it accrues, or you can let it capitalize (add to your principal) and pay it all back later. Paying interest while you are in school costs more upfront but saves money overall because you avoid capitalized interest.
Discover offers standard 10-year repayment, but you can also choose a longer term — up to 20 years — which lowers your monthly payment but increases total interest paid. There is no income-driven repayment option like federal loans have, and there is no forgiveness program if you work in public service or a nonprofit.
Where to explore for a Discover student loan
You can explore through Chase's website by following their student loan referral link, or you can go directly to Discover's website. The process takes about 10 minutes and asks for your school, expected graduation date, annual income, and Social Security number (for the credit check).
Discover will give you a rate estimate within minutes — this is a soft inquiry and does not affect your credit score. If you want to move forward, you authorize a hard credit check, and Discover makes a final decision within one to three business days. Once approved, you sign the promissory note and Discover sends the funds directly to your school.
If you are denied or offered a rate you do not like, you can explore with other private lenders. Sallie Mae, Citizens Bank, Earnest, and others all offer private student loans. Each lender has different credit requirements and rates, so comparing offers makes sense before you commit.
Why you might not want a private loan from Discover
Private student loans lack the protections built into federal loans. If you become disabled, federal loans can be forgiven. If you face financial hardship, federal loans have income-driven repayment plans that can lower your payment to as little as $0 per month. Private loans have no such safety net.
Private loans also do not offer the same deferment and forbearance options. If you lose your job or face a temporary hardship, federal loans can be paused. Private loans may allow a brief pause, but the terms vary by lender and are much more restrictive.
If you are borrowing a small amount — under $5,000 or $10,000 — a private loan may not be worth the cost. The interest you pay over 10 or 20 years can exceed the original loan amount. Federal loans, even with higher interest rates, often cost less because they have more flexible repayment options.
Frequently Asked Questions
Can I get a better rate on a Discover student loan if I have a Chase account?
No. Having a Chase checking or savings account does not affect your interest rate, approval odds, or terms on a Discover student loan. The rate you receive depends on your credit score, income, and whether you have a cosigner. The partnership between Chase and Discover is a referral arrangement only.
What happens if I cannot pay back a Discover student loan?
Discover offers forbearance and deferment options, but they are more limited than federal loans. If you miss payments, the loan goes into default, and Discover can sue you or report the debt to credit agencies. Unlike federal loans, there is no income-driven repayment plan that can lower your payment to zero.
Can I use a Discover student loan for graduate school?
Yes. Discover offers loans for graduate and professional school students. The process is the same as for undergraduate loans, though graduate students may have higher borrowing limits because graduate school typically costs more.
Do I have to explore through Chase to get a Discover student loan?
No. You can explore directly to Discover's website without going through Chase. The terms and rates are identical whether you explore through Chase's referral link or directly to Discover.
What is the difference between a fixed and variable interest rate on a Discover student loan?
A fixed rate stays the same for the entire life of the loan. A variable rate starts lower but can increase if market interest rates rise. Variable rates are riskier because your payment could go up, but they cost less upfront. Fixed rates cost more initially but protect you from future increases.