Auto Debit Reward Policy

Auto Debit Reward Terms and Conditions

These Terms and Conditions describe the eligibility and policies for the Auto Debit Reward. "You" refers to the borrower. "We" refers to Discover Bank.

Auto Debit Reward Eligibility

You will be eligible to receive the Auto Debit Reward if you meet all of the following conditions:

• You are the student borrower for a Federal Stafford Loan, Federal Grad PLUS Loan, or a Certified Private Loan (also called Private Education Loan) from Discover Bank; or you are the parent borrower for a Federal Parent PLUS Loan from Discover Bank
• Your loan is in the repayment phase (the Auto Debit Reward does not apply during the deferred phase when you may choose to prepay your loan)
• Your loan is not in default
• You do not have returned payments
• You are enrolled for recurring automatic payments from a bank account

Automatic Payment Enrollment

You must be enrolled for automatic payments to receive the Auto Debit Reward. You can enroll for automatic payments by following any one of the steps below:

1. Complete and mail back the Checkfree authorization form included in your payment coupon book from Great Lakes Educational Loan Services, Inc. (“Great Lakes”)
2. Call Great Lakes at 1-800-236-4300 to request a copy of the authorization form, complete it, and mail it back to Great Lakes
3. Log in to your account at DiscoverStudentLoans.com and complete the Automatic Payment Application

Enrollment usually begins 4 to 6 weeks after we receive your complete authorization form. If you have more than one loan, your single authorization will cover all loans. You should continue to send us monthly payments until you receive written confirmation from Great Lakes that your enrollment was successful. Great Lakes processes payments on our behalf.

If your loans are past due at the time you enroll, you must make separate arrangements to send the past due payments. You will earn the Auto Debit Reward only if you send in all past due payments and meet the Auto Debit Reward Eligibility requirements above.

Call Great Lakes at 1-800-236-4300 to:

• Increase the amount of your monthly automatic payment
• Unenroll from automatic payments (you will no longer receive the Auto Debit Reward)

Automatic Payment Cancellation

If you have three returned payments for non-sufficient funds, we will cancel your automatic payment enrollment and remove the Auto Debit Reward. You may re-enroll for automatic payments, but you will not receive the Auto Debit Reward.

Auto Debit Reward Amount

We will apply the Auto Debit Reward by reducing your repayment phase interest rate by 0.25% (0.0025). This will not affect the amount of your minimum monthly payments, but it may reduce the total number of payments necessary to pay off your loan and may reduce the amount of your last payment. It is your responsibility to notify us if you believe the Auto Debit Reward has not been applied correctly.

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 eligibility criteria or imposing additional conditions.