Graduation Reward Terms and Conditions

(applicable for variable interest rate loan applications submitted prior to May 1, 2014)

The Graduation Reward Program retired permanently on February 18, 2024.

The Terms and Conditions have been updated effective February 2024.

These Terms and Conditions describe the eligibility and redemption policy for the Graduation Reward. "You" refers to the borrower. "We" refers to Discover® Bank.

Graduation Reward Eligibility

You were eligible to receive a Graduation Reward if:

• You requested redemption for your reward prior to February 18, 2024, 11:59 p.m. ET, and
• You graduated from the degree program (undergraduate program or graduate program) that the loan was used to fund, and
  
• Your graduation date was more than 90 days and less than 6 years after the date of the loan's first disbursement, and
  
• You had an outstanding principal balance on your loan on the last day of the month of your graduation, and
  
• Your loan was not refinanced or consolidated with another lender prior to redeeming the reward, and
  
• Your loan was not in default on the graduation date, and
• You are the student borrower who submitted an application prior to May 1, 2014 for a variable interest rate Undergraduate, Health Professions, Law, MBA or Graduate loan originated by Discover Bank.

Upon graduation, if you had more than one participating loan, you may have been 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 to confirm eligibility for the Graduation Reward. If you defaulted on your loan or consolidated or refinanced 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 on your loan on the last day of the month of your graduation, which may be capitalized when your loan enters its repayment period.

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.

This reward may have tax impacts. Rewards redeemed on or after January 1, 2018 will reduce the amount of interest we report on Form 1098-E (Student Loan Interest Statement) over the remaining life of your loan. In some instances, we may issue you a Form 1099-MISC for some or all of your reward amount, such as if you pay off the entirety of your loan before the end of your repayment term. We are not able to provide you with tax advice. If you have any questions, we encourage you to consult a tax advisor.

Graduation Reward Redemption

You must redeem your Graduation Reward in full in a single redemption transaction, and 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
  

We will process your Graduation Reward within 90 days of your redemption request. Once reward redemption is requested, you will have 30 days to provide any requested documents before your reward request is closed.

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 redemption methods or imposing additional conditions.

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