Graduation Reward Terms and Conditions A
(For applications submitted between July 1, 2007 and October 9, 2007)
Graduation Reward Terms and Conditions B
(For applications submitted between October 10, 2007 and June 30, 2009)
If you have a Federal Stafford loan, Federal Grad PLUS loan, Federal
PLUS loan or a private education loan from Discover Bank, you may be
eligible for a Graduation Reward. These Terms and Conditions describe
the eligibility and redemption policy for the Graduation Reward and
apply to loans with applications submitted between July 1, 2007 and October 9, 2007.
“Student” refers to you if you are both the student and the
borrower, and refers to your child if you are both the parent and the
borrower. “We” refers to Discover Bank.
Graduation Reward Eligibility
You will be eligible to receive a Graduation Reward when:
- The student graduates from the degree program that the loan was used to fund, and
- The graduation date is less than six years after the date of the loan’s first disbursement, and
- The loan is not in default on the graduation date
Upon graduation, if you have more than one participating loan, you may be
eligible to receive a Graduation Reward on each loan. However, you will
not receive a Graduation Reward more than once for the same loan, even
if the student receives more than one degree. We may request proof of
the graduation date and degree from the student or the school, in order
to confirm eligibility for the Graduation Reward. If you default on
your loan or consolidate or refinance your loan with another lender
prior to redeeming the Graduation Reward, you will not be eligible
for a Graduation Reward.
Graduation Reward Amount
We will calculate the Graduation Reward by multiplying the outstanding
principal balance of your loan on the last day of the month of graduation
by 2% (0.02) and rounding to the nearest cent. The outstanding principal
balance used for the calculation will not include accrued and unpaid
interest, which may be capitalized when your loan enters its repayment phase.
If you consolidate or refinance your loan with another lender after you redeem
your Graduation Reward, we may add the amount you redeemed to the principal
balance of your loan that is reported to the consolidating or refinancing lender.
If there is an overpayment due to an error, we reserve the right to increase the
principal balance of your loan by the amount of the overpayment of the Graduation
Reward. It is your responsibility to notify us if there is an error in the Graduation
Reward calculation or if you do not receive an expected Graduation Reward redemption.
Graduation Reward Redemption
You may redeem the Graduation Reward by calling 1-877-728-3030,
Monday through Friday, 8am to 6pm EST.
If the Graduation Reward is less than $20, you may redeem it as a credit to the
balance of any of your Discover® Student Loans. If the Graduation Reward is greater
than $20, you may choose from one of the following three options:
- A credit to the balance of any of your Discover® Student Loans
- An electronic deposit into a bank account
- A check that is mailed to you
You must redeem your Graduation Reward in full in a single redemption transaction.
We will process your Graduation Reward within 90 days of your redemption request.
Changes to these Terms and Conditions
These Terms and Conditions are subject to change with notice. We may change them at
any time including, but not limited to, changing the redemption methods or imposing
additional conditions.
If you have a private education loan from Discover Bank, you may be
eligible for a Graduation Reward. These Terms and Conditions describe
the eligibility and redemption policy for the Graduation Reward and
apply to loans with applications submitted between October 10, 2007 and June
30, 2009. “You" refers to the student borrower. “We” refers to Discover Bank.
Graduation Reward Eligibility
You will be eligible to receive a Graduation Reward when:
- You graduate from the degree program that loan was used to fund, and
- Your graduation date is more than 90 days and is less than six years after the date of loan’s first disbursement, and
- Your loan is not in default on graduation date
Upon graduation, if you have more than one participating loan, you may be
eligible to receive a Graduation Reward on each loan. However, you will
not receive a Graduation Reward more than once for the same loan, even
if you receive more than one degree. We may request proof of
your graduation date and degree from you or your school, in order
to confirm eligibility for the Graduation Reward. If you default on
your loan or consolidate or refinance your loan with another lender
prior to redeeming the Graduation Reward, you will not be eligible
for a Graduation Reward.
Graduation Reward Amount
We will calculate the Graduation Reward by multiplying the outstanding
principal balance of your loan on the last day of the month of graduation
by 2% (0.02) and rounding to the nearest cent. The outstanding principal
balance used for the calculation will not include accrued and unpaid
interest, which may be capitalized when your loan enters its repayment phase.
If you consolidate or refinance your loan with another lender after you redeem
your Graduation Reward, we may add the amount you redeemed to the principal
balance of your loan that is reported to the consolidating or refinancing lender.
If there is an overpayment due to an error, we reserve the right to increase the
principal balance of your loan by the amount of the overpayment of the Graduation
Reward. It is your responsibility to notify us if there is an error in the Graduation
Reward calculation or if you do not receive an expected Graduation Reward redemption.
Graduation Reward Redemption
You may redeem the Graduation Reward by calling 1-877-728-3030,
Monday through Friday, 8am to 6pm EST.
If the Graduation Reward is less than $20, you may redeem it as a credit to the
balance of any of your Discover® Student Loans. If the Graduation Reward is greater
than $20, you may choose from one of the following options:
- A credit to the balance of any of your Discover® Student Loans
- An electronic deposit into a bank account
You must redeem your Graduation Reward in full in a single redemption transaction.
We will process your Graduation Reward within 90 days of your redemption request.
Changes to these Terms and Conditions
These Terms and Conditions are subject to change with notice. We may change them at
any time including, but not limited to, changing the redemption methods or imposing
additional conditions.