Discover Student Loan Complaint

Discover Student loan department,

Non-federal student loan Dealing with my lender or servicer Received bad information about my loan Virginia

I am a current customer with Discover Student Loans. My interest rate has increased from 6.5 % to 7.00 % in less than two years ; that includes - increases in the past six months. So, I called Discover Student Loans this morning. I asked for a reduction in my interest rate. I was informed by - agents that the federal regulators set the rates, and that Discover can not reduce my interest rate. That is incorrect. The federal regulators set the prime rates. Discover adds on to that rate to set my Discover Student Loan total interest rate. My first complaint is that Discover provided me incorrect information on how my student loan interest rate was calculated and blamed the regulators for the rate, not taking ownership for their calculation. Next, I was informed by a Discover Student Loan agent that the ONLY way to reduce my rate was to apply for a consolidated student loan. This would account for a hard inquiry on my credit. Upon hearing this was my ONLY option, I submitted my application over the telephone.


I informed the agent of this, who simply did not agree. Next, the agent obtained my information and imported my existing Discover Student Loan information ( i.e., the current balance ) into the application. Next, the agent informed me that I was not approved and that I would receive a letter in the mail informing me as to why I was not approved. The application I submitted and was ultimately declined for only included the existing Discover Student Loan. Ironically, I was declined for the same student loan product that I currently have with Discover. That 's my third complaint - that I was declined for the same product I have today. I informed the agent that I have obtained lower fixed and variable rates from a competitor. Discover 's competitor offered me the same lending terms ( variable, 15-year ) at 4.7 % interest. My current Discover student loan 's interest rate is 7.00 % ; that includes a .25 % reduction for direct debit. My fourth complaint is that Discover is taking 2.3 % more than its competitor ( s ) over the life of this loan. That amount excessive, and not working with me to reduce my rate to match industry standard is unconscionable.