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Recently, Discover Student Loans, a unit of Discover Financial Services (DFS - Analyst Report), introduced two new loan products for law students and for people beginning a health profession residency program or internship.

While The Discover Bar Exam Loan covers bar exam preparation classes and living expenses, The Discover Residency Loan covers residency, internship, relocation and board exam review expenses for students enrolled in a variety of courses.

The loans will offer low fixed and variable interest rates along with a 0.25% rate cut for people enrolled in automatic debit payments.

Moreover, the students will have to begin repayment after half-time, while enrolled in school, or 9 months after graduation. Moreover, Discover Financial provides round-the-clock customer service to students. The company also does not charge any late payment fees on new loans.

The new loans focus on offering student loans at reasonable rates to allow more students to achieve their dreams of professional education. As students cannot avail federal loans for post-graduate professional courses, Discover Financial’s loan product is expected to be popular.

Discover Financial plans to expand its market presence through product launches, extension of distribution channels and partnerships. In February this year, Discover Financial launched a new direct banking product – Discover Cashback Checking SM – a checking account offering cashback rewards.

Previously in Jan 2013, Discover Financial announced the launch of a new credit card – Discover it and announced an affiliation with Birmingham-based Cadence Bank to launch the new Cadence Bank Debit Card.

Discover Financial currently carries a Zacks Rank #2 (Buy). Other companies in the financial sector that are worth considering are Visa Inc. (V - Analyst Report), Total System Services, Inc. (TSS - Analyst Report) and Encore Capital Group, Inc. (ECPG - Snapshot Report). All these companies carry a Zacks Rank #2 (Buy).

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