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.
These Terms and Conditions describe the eligibility and policies for Automatic Payments. “You” refers to the customer. “We” refers to Discover Bank. “Automatic Payments” refers to ongoing monthly payments that are automatically withdrawn from your bank account.
To enroll in Automatic Payments:
Your enrollment will be at the account level and will include all loans on your monthly billing statement for that account. Any future Discover student or parent loans that are added to the account will also be covered by your enrollment.
You should continue to send monthly payments until you receive written confirmation (email or US Mail) that your enrollment was successful.
We will take monthly automatic payments, as you have authorized, at the Auto Debit Amount and Auto Debit Date stated on your monthly billing statement.
Automatic Payments will continue to be withdrawn each month, regardless if you make additional payments during the month.
If you are paying from an external bank account and your Auto Debit Date lands on a weekend day or bank holiday, it will be presented to your bank on the next business day. The transaction will be dated to be effective as of the Auto Debit Date.
If you are paying with an internal transfer from a Discover Bank account and your Auto Debit Date lands on a weekend day or bank holiday, your payment will be effective on the Auto Debit Date and will be processed as early as the Auto Debit Date, even if that day is not a business day.
You can cancel automatic payments until 5:00 PM ET on your Auto Debit Date. You can edit automatic payments until 5:00 PM ET on your Auto Debit Date if your Auto Debit Date is a processing day or until 5:00 PM ET on the prior processing day if your Auto Debit Date is a non-processing day. Processing days are Sunday through Friday and Saturdays (when it is the first or last day of the month). All other Saturdays are considered non-processing days. Cancel or edit your payments online or by calling us at 1-800-STUDENT.
For loans with In-school repayment options that are in Grace or Deferment and moving into Repayment, we will not withdraw the auto debit amount as stated on the billing statement if the loans move into repayment before the Auto Debit Date. The Auto Debit Amount will be reduced to exclude the monthly payment amounts for the loans that moved from Grace or Deferment into Repayment.
Cancelling your Automatic Payments will also cancel the Auto Debit Reward.
When enrolling in Automatic Payments, you can authorize the monthly payment to be equal to either the “Minimum Monthly Due” or the “Minimum Monthly Due plus a Fixed Amount”.
“Minimum Payment Due” is the minimum monthly installment amount and can be enrolled for In-school Repayment options (Fixed & Interest only) and during the standard Repayment period.
“Minimum Payment Due + Fixed Amount” is the minimum monthly installment amount plus a fixed amount and can be enrolled during Deferment, Grace, and Repayment periods. Only the fixed amount will be debited while in Deferment or Grace. When these periods end, only the Minimum Payment Due will be debited, unless a new fixed amount is selected.
Receive a lower interest rate while enrolled in Automatic Payments.
These Terms and Conditions describe the eligibility and policies for the Auto Debit Reward. “You” refers to the customer. “We” refers to Discover Bank. “Automatic Payments” refers to ongoing monthly payments that are automatically withdrawn from your bank account.
You will be eligible to receive the Auto Debit Reward if you meet all of the following conditions:
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 Automatic Payments.
The Terms and Conditions have been updated effective April 2021. 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.
We reserve the right to cancel your Automatic Payments or Auto Debit Rewards at any time.