Sign up and receive a lower interest rate while enrolled
When you have your monthly payments automatically deducted from your checking or savings account, you receive a 0.25% interest rate reduction. To enroll, log in to your account or call us at 1-800-STUDENT.
Auto Debit Reward Terms and Conditions
These Terms and Conditions describe the eligibility and policies for the Auto Debit Reward. "You" refers to the customer. "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 borrower or cosigner of a student loan or the borrower of a parent loan originated or purchased by Discover Bank.
- All loans in the account must be current. You are not eligible for the Auto Debit Reward if you have loans in forbearance, delinquency and/or default or charge-off statuses. Existing Auto Debit enrollments will be cancelled if loans in the account enter those statuses.
- You may enroll in automatic payments for the following payment options:
- Full Principal and Interest Payments During the Repayment Period. You can request the Auto Debit Reward during the Repayment Period and ize automatic payments for at least the Minimum Payment Due amount. You also have the option of adding a fixed amount, above and beyond the Minimum Payment Due amount to be debited each month.
- In-school Interest-Only Repayment. You will be eligible for the Auto Debit Reward while you are enrolled in the Auto Debit payment program for at least the agreed in-school interest payment amount during any in-school and grace periods. Full principal and interest payments will be debited when the loan enters the Repayment Period.
- In-school Fixed Repayment. You will be eligible for the Auto Debit Reward while you are enrolled in the Auto Debit payment program for at least the agreed in-school $25 fixed payment amount during any in-school and grace periods. Full principal and interest payments will be debited when the loan enters the Repayment Period.
- Fixed Payments During the Deferment Period. You can retain or request the Auto Debit Reward during your deferment period and ize automatic payments for a fixed amount. When your deferment period ends, we will debit only full principal and interest payments, unless you ize a new fixed amount.
- Parent Loan: Fixed Payments During the Deferred Repayment Period. You can retain or request the Auto Debit Reward during your deferred repayment period and ize automatic payments for the Minimum Payment Due + fixed amount. When your deferred repayment period ends, we will debit full principal and interest payments and your stated fixed amount, unless you cancel your automatic payments.
- You are not eligible for the Auto Debit Reward, and it will be cancelled, if your monthly Auto Debit payment amount is $0.00.
Auto Debit Enrollment
To receive the Auto Debit Reward, you must be enrolled in the Auto Debit payment program for monthly automatic payments from a United States bank account.
To enroll loans:
- Call us at 1-800-STUDENT to enroll. Cosigners must enroll in the Auto Debit payment program via phone.
- Visit DiscoverStudentLoans.com to log in to your account.
Your enrollment will be at the account level and will include all loans on the statement. Any future Discover student or parent loans that are added to the account may also be covered by your enrollment.
You should continue to send us monthly payments until you receive written confirmation that your enrollment was successful.
We will take monthly automatic debits at the Auto Debit Amount and date indicated on your monthly statement.
You can cancel or modify future-scheduled Auto Debit payments until 5:00 PM ET on the day your payment is scheduled by calling us at 1-800-STUDENT. Cancelling your automatic payments will also cancel the Auto Debit Reward.
Auto Debit Reward Amount
We will apply the Auto Debit Reward by reducing your interest rate by 0.25%. This may change the amount of your minimum monthly payment, may change the total number of payments necessary to pay off your loan and may change the amount of your final payment. It is your responsibility to notify us if you believe the Auto Debit Reward has not been applied correctly. Your Auto Debit Reward cannot be doubled, even if the borrower and cosigner are both enrolled in the Auto Debit payment program.
Changes to These Terms and Conditions
These Terms and Conditions are subject to change without notice. We may change them at any time including, but not limited to, changing the eligibility criteria or imposing additional conditions.