Auto Debit Reward Terms and Conditions

Auto Debit Reward (ADR) Terms and Conditions

Sign up and receive a lower interest rate while enrolled

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 of a student loan originated or purchased by Discover Bank, or the cosigner for all such student loans of such a borrower.
  • You have at least one loan in Normal Repayment where full installment payments are due. For ADR purposes, Normal Repayment does not include loans in forbearance, delinquency and/or default or charge off statuses or loans in reduced repayment programs; existing Auto Debit and Auto Debit Reward enrollments will be cancelled for loans in those statuses and programs.

Limited exceptions apply as follows:

  1. In-school Repayment. You will be eligible for the Auto Debit Reward if you chose the in-school repayment loan option during the application process, and while you are enrolled in the Auto Debit payment program for the agreed in-school payment amount during the in-school and grace periods. Full principal and interest payments will be debited when the loan enters Normal Repayment.
  2. Fixed Payments During Deferment. You can retain or request the Auto Debit Reward during Deferment periods by calling 1-800-STUDENT and authorizing automatic payments for the installment + fixed amount. During deferment, the installment will be zero (no payment is due), but the fixed amount will be debited. The full installment and fixed amount will be debited when the loan enters Normal Repayment unless you cancel your automatic payments.
  • Your loan is not delinquent and/or in default. If your loans become past due after you enroll, we may cancel your enrollment and your Auto Debit Reward.

Auto Debit Enrollment

To receive the Auto Debit Reward, you must be enrolled in Auto Debit payment program for monthly automatic payments from a United States bank account.

To enroll loans:

  • Call us at to enroll. Cosigners must enroll in the Auto Debit payment program via phone.
  • Visit and click the link for the Auto Debit payment program.
  • Your enrollment will include all current and future eligible student loans serviced by Discover unless you request enrollment for individual accounts by calling 1-800-STUDENT. Account-level enrollment covers all loans on one statement.

Enrollment usually begins 3 to 5 weeks after we receive your completed enrollment form. You should continue to send us monthly payments until you receive written confirmation that your enrollment was successful.

You may be able to increase the amount of your monthly automatic payment by calling us at

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% (0.0025). 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.