You can apply for the Discover New Student Loan program if you have a credit score of at least 620 and a high school diploma or equivalent. It is an excellent opportunity for students because this loan provider offers to finance higher education with favourable terms. However, there are several factors to consider before applying. It is common to change your mind even after applying. Suppose you think taking out a Discover student loan is not in your best interests. In such a circumstance, you may withdraw your application before its initiation. How To Cancel Discover Student Loan Application?
How To Cancel Your Student Loan Application?
Cancelling your Discover student loan application is as easy as calling or emailing and letting the company know that you no longer wish to proceed with the application process or logging in to your account online.
If you are unsure about how to proceed, follow these steps:
1. Log in to the Discover website and click “My Account,” then select “View Payment History.”
2. Click on “Applying for a Loan” from the listing of loans on your account page.
3. Click “Cancel Loan Application.”
4. Provide your contact information and submit the form.
Other Options Besides Discover Student Loans
There are other options besides Discover Student Loans to fund your education. These include private student loans, federal student loans, and Parent PLUS loans. All of these are available at the Federal Direct Loan Program.
Federal Direct Loans are available for undergraduate students and parent borrowers with dependent children (under age 23) attending school full-time. You can borrow up to $20,500 per year in Perkins Loans for undergraduates with exceptional financial needs.
Federal loans have:
• More flexible repayment options.
• Better loan forgiveness programs.
• More attractive interest rates than private loans like Discover.
Private Student Loans
These are accessible if you attend college out of state or abroad and have a co-signer prepared to assume the risk associated with this form of a loan. If you do not have a co-signer, you can apply directly with a lender like Sallie Mae or Wells Fargo.
What Happens When You Cancel Your Discover Student Loan Application?
If you have decided to cancel your Discover Student Loan Application, there are a few things you need to know:
– First, when you cancel your application, the servicer has seven days to notify your loan holder and financial institution. The message will include information about why you cancel the application and what happens next.
– Second, cancel your application within 30 days (either by completing the application or hitting “cancel”), and you will not pay any fee. Waiting more than 30 days may result in a cancellation fee.
Reasons For Cancelling a Discover Student Loan Application.
- They mistakenly applied for a Discover loan.
- They may have discovered they are not eligible for a Discover student loan.
- They discover better student loan options elsewhere.
- The borrower does not want to pay the total amount of their loan as interest is accruing during the deferment period.
- They may be living pay check-to-pay check at this point in life and cannot afford any payments on their Discover student loan.
- They have fallen behind on their payments and cannot afford to pay them back.
- They do not want to continue the loan because it is too expensive.
- There is a lot of uncertainty about how long it will take and how much interest or late fees (if any) you will pay.
Should You Still Apply?
As you may know, the Discover Student Loans program allows students to apply for loans up to $10,000. The loans are paid back via direct deposit and are eligible for income-based repayment plans.
There are a few things that may make you want to consider reapplying after cancelling your application:
- You may want to reapply if you have had trouble making payments because of a recent change in your financial situation. If you were denied because of unemployment, you might want to reapply if you have another job lined up. Think about whether it is right for you.
- Some students do better with a fixed or variable rate plan. Others prefer the flexibility of an adjustable-rate schedule so they can manage their monthly payments easily by switching between fixed and variable rates.
Conclusion
When it comes to student loan financing, you must explore all your options to decide which loans you want. Discover Student Loans can be an excellent resource for financing your higher education. Still, ensuring you get the loan for the right reasons is essential.
FAQs
- Can one cancel an approved loan?
You will get the money you received back if you opt to cancel the amount disbursed. Your school will not charge you any interest or fees for disbursing your loan money.
- What is the processing time for a Discover student loan?
The average time it takes for a Discover student loan to be approved is 15 minutes. A consolidation loan could take anywhere from 30 to 45 days.
- Can one cancel a signed private loan?
It is tough to terminate a private loan. Private loan cancellation is not mandatory by law, and borrowers do not have as many alternatives as federal student loan holders.
