Discover Student Loans, a division of the financial services more widely known for its credit card, said today it is reducing its lowest eligible interest rate to 3.75 percent.
In a statement, Discover said it is lowering its minimum rate on student loans “to help families cope with the rising costs of higher education, cutbacks in available scholarships and increased competition for shrinking public funds.”
Discover Student Loans was launched in July 2007. Since then, the average published tuition and fees have increased by 13.5 percent at public four-year colleges and universities for in-state students – and are up 10.8 percent at private colleges, according to the College Board.
Moreover, the National Association of Student Financial Aid Administrators said that many states, charities and colleges have already cut or plan to cut their 2010 scholarship budgets.
“We are committed to providing students and families with a simple and affordable solution to help them pay for school,” says PK Parekh, director and general manager of Discover Student Loans. “We believe in responsible lending and encourage students and their families to first consider free financial aid, family assistance and personal savings, and then federal loans before turning to private loans.”
In its first three years, Discover Student Loans has assisted more than 200,000 students with $3 billion in loans.
For more information on Discover Student Loans, visit DiscoverStudentLoans.com.
