Undergraduate Health Professions & Residency Law & Bar Exam MBA Graduate

Transcription

1 Undergraduate Health Professions & Residency Law & Bar Exam MBA Graduate For Financial Aid Office Use Only Discover Student Loans are made by Discover Bank 2014 Discover Bank, Member FDIC

2 Table of Contents Who We Are and What We Stand For 2 Our Loans 7 Here for You and Your Students 13 Application and Servicing Processes 18 Financial Know-How for Your Students 21 How to Contact Us 28 Appendix A: Additional Loan Details 31 Appendix B: Additional Information 46 July 1,

3 Who We Are and What We Stand For July 1,

4 Discover Student Loans Overview Discover Student Loans is one of the largest providers of private student loans in the United States. We understand that determining how to pay for college and graduate school has changed, and for the past 29 years we have provided schools, students and their families with tools and resources to help them navigate these changes and help them make the dream of a college education into a reality. As part of Discover Bank, a leading direct bank, we pride ourselves on customer service excellence and financial stability. We fund, hold and manage the servicing of our student loans in-house and have knowledgeable, US-based Student Loan Specialists ready to help our customers 24/7 for the life of the loan. While Discover is widely known for credit cards, we also offer a variety of banking and lending products that also feature the same great service and benefits Discover customers have come to expect. Discover offers personal and home loans; personal, student and small business credit cards; and personal banking services, including savings accounts. July 1,

5 Our Mission and Vision Our Mission To help people spend smarter, manage debt better and save more so they achieve a brighter financial future. Our Vision To be the most rewarding relationship consumers and businesses have with a financial services company. Corporate Responsibility Discover believes in being a good corporate citizen. We seek to make a difference in the community by supporting the goals and activities of not-for-profit organizations and by rolling up our sleeves as volunteers. One of our proudest accomplishments is Pathway to Financial Success, which we created to help bring financial education into classrooms across the country. The program has been successful and we recently received the Excellence in Financial Literacy Education (EIFLE) Award and were named Organization of the Year by The Institute of Financial Literacy for our innovation, dedication and commitment to advance financial literacy education. For more information about Pathway to Financial Success, visit: pathwaytofinancialsuccess.org/about-pathway July 1,

6 Commitment to Responsible Borrowing We are committed to lend responsibly and encourage students and parents to maximize grants, scholarships and other free financial aid before taking student loans. We recommend students and parents compare the features of federal and private student loans and choose the loans that best fit their needs. We require school certification and disburse all undergraduate and graduate loans through your school so students won t borrow more than they need and tuition bills get paid on time. In addition, we send quarterly statements to students and cosigners during deferment, so they see how much interest is accruing and know how to make optional payments that reduce the overall cost of the loan. We believe in giving our customers choices no matter where they are in college, graduate school or during their post-graduate studies. Students can choose loans with fixed or variable interest rates, in-school or deferred repayment options and all loans have zero fees. July 1,

7 Scholarships Discover Student Loans makes it easier to find free money to help pay for college. As part of our promise to encourage responsible borrowing, we give students and parents access to a scholarship search engine: DiscoverStudentLoans.com/Scholarship Scholarship Search Search over 3 million scholarships worth more than $18 billion. No registration required. Scholarship Directory Looking for specific scholarships? Use the directory to sort scholarships by name and category. July 1,

8 Our Loans July 1,

9 Discover Student Loans At Discover Student Loans, we provide loans to students at over 2,200 colleges and graduate schools across the country to help them cover up to 100% of tuition, housing, books and more. We also provide post-graduate loans for law students who are preparing to take the bar exam and health professions students preparing for their internship or residency. Fixed or variable interest rates Zero fees (see page 9 for more information) Students can choose during the application process to make $25 fixed, monthly payments while in-school or defer payments while enrolled in school at least halftime Rewards for Good Grades (see page 10 for more information) 0.25% Auto Debit Reward 0.25% GMAT Test-Taker Reward (MBA loans) July 1,

10 Zero Fees Discover Student Loans understands that fees can add to the overall cost of a student s loan. Students will not pay any fees to Discover Student Loans for the life of their loan. Zero fees include, but are not limited to: Zero Loan Fee Zero Origination Fee Zero Up-Front Fee Zero Guarantee Fee Zero Insurance Fee Zero Disbursement Fee Zero Supplemental Fee Zero Repayment Fee Zero Deferment Fee Zero Forbearance Fee Zero Late Payment Fee Zero Returned Payment Fee July 1,

11 Rewards In addition to zero fees, Discover Student Loans offers money-saving benefits throughout the life of the loan: 1% Cash Rewards for Good Grades Doing homework has it rewards. Now when students get at least a 3.0 GPA (or equivalent), they get a one-time cash reward of 1% of the loan amount of each new Discover student loan. Reward redemption period is limited. 0.25% Auto Debit Reward Borrowers can save time, money and 0.25% on their interest rate when they enroll in automatic debit payments during repayment. 0.25% GMAT Test-Taker Reward Graduate business students who have taken the GMAT Test within the last five years will receive a 0.25% interest rate reduction on Discover MBA Loans to help reduce their cost of borrowing. We honor the benefits we advertised for existing loans, even if we change our benefit policies for new loans. Please visit DiscoverStudentLoans.com for benefit terms and conditions. July 1,

12 General Terms for Undergraduate and Graduate Loans Student Eligibility At least 18 years old (16 if applying with a cosigner) Enrolled at least half-time and making satisfactory academic progress in an undergraduate, graduate health, law, MBA or other business degree or graduate degree program US citizen, permanent resident or international student (International students require a Social Security number and a cosigner) Must pass a credit check Cosigner Eligibility At least 18 years old US citizen or permanent resident Must pass a credit check Loan Amount Up to 100% of the cost of attendance minus other financial aid Loan amounts are certified and disbursed through the school Interest Rates Fees Deferment and Forbearance Periods Grace Period Fixed or variable interest rates Zero Optional in-school deferment while enrolled at least half-time Up to 3 years of deferment during the life of the loan for Active Military Duty Up to 3 years of deferment during the life of the loan for Public Service Up to 5 years of deferment during the life of the loan for Residency Up to 12 months of forbearance during the life of the loan 6 months for undergraduate loans; 9 months for graduate loans Repayment Options 15 years for undergraduate loans; 20 years for graduate loans Students can elect, during the application process, to make $25 fixed, monthly payments while in-school and during grace period to lower overall loan cost Students can choose to have payments deferred, which means no payments are due until enrollment drops below half-time. Loan Forgiveness Rewards for Good Grades Auto Debit Reward In the event of the primary borrower s death or permanent disability At least a 3.0 GPA (or equivalent) qualifies for a one-time cash reward of 1% of the loan amount of each new Discover student loan. Reward redemption period is limited. 0.25% interest rate reduction when enrolled in automatic debit payments during repayment GMAT Test-Taker Reward 0.25% interest rate reduction is applied immediately after loan disbursement for the life of the loan Eligible borrowers must have taken the GMAT within five years of submitting their loan application July 1,

13 General Terms for Post-Graduate Loans Student Eligibility At least 18 years old (16 if applying with a cosigner) Bar Exam Loan: Graduated within the past 6 months, or enrolled in the final year in a graduate law degree program Residency Loan: Graduated within the past 12 months, or enrolled at least half-time in the final year in one of the following graduate health professions programs: Allopathy, Dentistry, Occupational Therapy, Optometry, Osteopathy, Pharmacy, Physical Therapy, Physician Assistant, Podiatry, Nursing or Veterinary Medicine US citizen, permanent resident or international student (International students require a Social Security number and a cosigner) Must pass a credit check Cosigner Eligibility At least 18 years old US citizen or permanent resident Must pass a credit check Loan Amount Bar Exam Loan: Up to $16,000 Residency Loan: Up to $18,000 for Allopathy, Dentistry, Optometry, Osteopathy, Pharmacy, Podiatry or Veterinary Medicine Residency Loan: Up to $5,000 for Nursing, Occupational Therapy, Physician Assistant or Physical Therapy Loan amounts are disbursed to the borrower via check or direct deposit Interest Rates Fees Deferment and Forbearance Periods Grace Period Fixed or variable interest rates Zero Optional in-school deferment with no payments required while enrolled at least half-time Up to 3 years of deferment during the life of the loan for Active Military Duty Up to 3 years of deferment during the life of the loan for Public Service Up to 5 years of deferment during the life of the loan for Residency Up to 12 months of forbearance during the life of the loan Ends 9 months after graduation Repayment Options 20 years Students can elect, during the application process, to make $25 fixed, monthly payments while in-school and during grace period to lower overall loan cost Students can choose to have payments deferred, which means no payments are due until enrollment drops below halftime. Loan Forgiveness Auto Debit Reward In the event of the primary borrower s death or permanent disability 0.25% interest rate reduction when enrolled in automatic debit payments during repayment July 1,

14 Here for You and Your Students July 1,

15 Online Support Is Always Available For schools, we provide secure online access to view loan status, check reports and certify loans. We can customize your school s setup to provide a variety of reports on applications in process and disbursed loans via or our website, DiscoverStudentLoans.com. July 1,

16 A Dedicated Team for You We are committed to providing excellent service to you and your staff. Dedicated school support is available 8:00 a.m. 9:00 p.m. ET, Monday through Friday. Your Priority Services team can be reached at or ed at to answer questions about operations, individual applications and specific accounts. Billye Jean Stroud is the Relationship Manager dedicated to your school and can be reached at and Billye Jean can answer a variety of questions related to the Discover Student Loans program and facilitate resolution of any servicing issues. July 1,

17 24/7 US-Based Customer Service Our knowledgeable US-based Student Loan Specialists are available anytime 24 hours a day, 7 days a week at STUDENT. When students and parents call us, they reach a live person who helps them with: General inquiries Applications by phone Student or parent inquiries on applications in process or existing loans Our customer service call centers are located in Phoenix, Arizona and West Valley, Utah. Hearing impaired customers can call our TDD number at Service Standards We answer 90% of customer calls within 60 seconds, and our average speed of answer is under 20 seconds. We manage our abandon rate to less than 3%. Customers may also contact us via and mail, and we reply within two business days. July 1,

18 Convenient Online Support DiscoverStudentLoans.com has tips and tools to assist students as they explore financial aid, apply for private student loans and prepare for repayment. We feature Live Chat and secure on our website as an added convenience for customers to get the answers they need. From their online account, students and cosigners can: Apply for a loan and get an immediate credit response Electronically sign or download the Promissory Note, Self-Certification Form and Cosigner Addendum View loan balances and interest rates Update personal information (phone, address, , password) Print forms for deferment and automatic payment enrollment More information and resources to help educate students and parents about paying for college is available at: StudentLoan.com July 1,

19 Application and Servicing Processes July 1,

20 The Application Process, Step-by-Step Students can apply anytime online at DiscoverStudentLoans.com and by phone. To help expedite the application process, we offer electronic signature capability for the Promissory Note, Self-Certification Form and Cosigner Addendum. Throughout the process, we follow up with applicants via mail, and phone to review required steps for application and loan approval and help ensure they get their student loan on time. Step 1 Apply online or by phone. We review credit history and give an immediate credit response and let the applicant know if he/she qualifies for the loan. Step 2 Sign loan documents online or send by mail. We contact your school to request certification for undergraduate and graduate loans; verification for postgraduate loans for enrolled students. Step 3 Accept the loan terms. We send funds directly to your school for undergraduate and graduate loans; to the borrower via check or direct deposit for postgraduate loans. July 1,

21 Certification and Disbursement Options to Meet Your Needs We provide a variety of processing options to support your school s certification and disbursement preferences. Certification Methods ELMNet Great Lakes ScholarNet ilink SM OpenNet SBS with Commonline 4 Online via our website Fax Disbursement Methods ELM National Disbursement Network Great Lakes CDS ilink CDS EFT to your school s bank account Individual Paper Check For Bar Exam Loans and Residency Loans: May require school verification for enrolled students. Disbursed to the borrower via check or direct deposit. July 1,

22 Financial Know-How for Your Students July 1,

23 Financial Know-How for Students We take a multi-level approach to helping customers with financial literacy, debt management and default prevention: Online educational tools and resources Underwriting and borrowing responsibly Proactive default-prevention initiatives July 1,

24 Financial Literacy Tools at Your Fingertips We understand that students and parents have a lot on their mind when it comes to figuring out how to pay for college. Content and resources on DiscoverStudentLoans.com is organized so information is simple and easy to understand. The Pay for College section on our website includes financial literacy content dedicated to educating students and parents about financial aid and student loans. Students and parents can find information about: Free money options, including how to search and apply for grants and scholarships Tips for comparing federal and private student loans and understanding student loan interest rates In addition to financial aid and student loans, there is also practical advice about preparing for on-campus visits and choosing between in-state and out-of-state schools. July 1,

25 StudentLoan.com for Students and Parents We also have more information and resources for both students and parents at StudentLoan.com our educational website about paying for college. Plan for College has information about preparing and paying for college. Learn About Loans has overviews of federal and private student loans and tools to help you understand how to borrow responsibly. For Parents provides information and tips to help parents decide how to help pay for their child s education. Calculators help students and parents understand what they may need to borrow and estimate their monthly payments. July 1,

26 Underwriting and Borrowing Responsibly We utilize proprietary underwriting criteria that considers credit history and other factors. This and the industry-standard, FICO-based decisioning, factor into our credit decisions. Applying with a Creditworthy Cosigner We evaluate all student loan applications for individual eligibility first. Many students don t have an established credit history or income and therefore will need a cosigner. Students who qualify for the loan as an individual have the option to apply with a cosigner. As part of our process, we inform students of the option to add a creditworthy cosigner, which may improve their likelihood for loan approval and a lower interest rate. Borrowing Responsibly and Establishing Good Credit We understand that for many students, the first time they take out a loan is when they borrow for college. The Pay Your Loans section on our website includes ways to reduce student loans costs, debt management advice and tips about building and maintaining a good credit history. Students can also get information about repayment and details about their deferment options. July 1,

27 Proactive Efforts to Limit Default Discover Student Loans is committed to helping our student loan customers avoid the negative consequences of delinquency and default. Our Repayment Assistance department contacts customers before and during repayment to deliver support and identify solutions for successful repayment. While the loan is in deferment or forbearance, we send quarterly statements to students and cosigners so they can see how much interest is accruing and know how to make optional payments that reduce the overall cost of their loan. While the loan is in repayment, students can manage their account online 24/7. Students are encouraged to call our Student Loan Specialists if they have questions regarding repayment or are having difficulty making a payment. If students miss a payment, we contact them to discuss available options and help them get back on track. July 1,

28 Repayment Assistance Options Deferment Forbearance Grace Extension Reduced Payment Payment Extension A temporary postponement of payments. Payments are postponed for a cumulative total of 12-months for the life of the loan. (Once students make 6 months of on-time payments, following the original 9-month forbearance period, they may become eligible for an additional 3-months of forbearance for a cumulative maximum of 12 months.) A 3-month extension of the grace period. The minimum monthly payment is reduced to an estimated monthly interest amount ($50.00 minimum) for 6 months. Allows students to bring their loan current by making 3 minimum monthly payments (or the equivalent amount of 3 minimum monthly payments) within a 90-day period. Students must be enrolled in school at least half-time, on active military duty, serving in a public service organization or in a medical residency. Students must be experiencing hardship due to unemployment, economic hardship, excessive student loan burden or medical disability. Students must be within the first 6 months of their repayment period and their student loan(s) are less than 60 days delinquent. Student loan(s) must be less than 60 days delinquent and the student did not previously participate in a similar repayment option. Students must be within the first 6 months of their repayment period, and their student loans are more than 60 days delinquent and have not been in forbearance for the past 6 months. Full chart details available here: July 1,

29 How to Contact Us July 1,

30 School Information Priority Services :00 a.m. 9:00 p.m. ET Monday Friday Fax: Special Delivery Regular Mail Lender ID / Servicer Code Discover Student Loans Customer Service 5420 W 1730 S Salt Lake City, UT Discover Student Loans Customer Service PO Box Salt Lake City, UT July 1,

31 Borrower Information Customer Service for Students and Cosigners Special Delivery Regular Mail Borrower Payments STUDENT 24 hours a day, 7 days a week TDD: Service@DiscoverStudentLoans.com Discover Student Loans Customer Service 5420 W 1730 S Salt Lake City, UT Discover Student Loans Customer Service PO Box Salt Lake City, UT Great Lakes PO Box 3059 Milwaukee, WI July 1,

32 Appendix A: Additional Loan Details July 1,

33 Undergraduate Loans Loan Name Discover Undergraduate Loan Product/Guarantor Code 320/310 Student Eligibility At least 18 years old (16 if applying with a cosigner) Enrolled at least half-time and making satisfactory academic progress in a 4- or 5-year undergraduate degree program US citizen, permanent resident or international student (International students require a Social Security number and a cosigner) Must pass a credit check Cosigner Eligibility At least 18 years old US citizen or permanent resident Must pass a credit check Loan Amount Up to 100% of the cost of attendance minus other financial aid $150,000 aggregate borrowing limit $1,000 minimum on each loan Loan amounts are certified and disbursed through the school Interest Rates Fixed interest rates ranging from 5.99% APR to 11.24% APR Variable interest rates ranging from 3-Month LIBOR Index % to 3-Month LIBOR Index % (starting rates currently range from 2.99% APR to 8.49% APR) The Annual Percentage Rate (APR) for a variable rate loan may increase during the life of the loan if the 3-Month LIBOR Index increases. This may result in higher monthly payments, an increase in the number of scheduled payments or both. Fees Zero We will adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the interest rate change date ), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or ). July 1,

34 Undergraduate Loans Deferment and Forbearance Periods Grace Period Optional in-school deferment with no payments required while enrolled at least half-time Up to 3 years of deferment during the life of the loan for Active Military Duty Up to 3 years of deferment during the life of the loan for Public Service with the National Oceanic and Atmospheric Administration, Peace Corps, Red Cross, US Public Health Service Commissioned Corps or US Department of State (Fulbright Program) Up to 5 years of deferment during the life of the loan for Residency Up to 12 months of forbearance during the life of the loan 6 months Repayment Options 15 years Students can elect, during the application process, to make $25 fixed, monthly payments while in-school and during grace period to lower overall loan cost Students can choose to have payments deferred, which means no payments are due until 6 months after graduation or enrollment drops below half-time Payments can be made anytime to help reduce the overall cost of the loan and there is never a penalty for prepaying Loan Forgiveness Rewards for Good Grades In the event of the primary borrower s death or permanent disability At least a 3.0 GPA (or equivalent) qualifies for a one-time cash reward of 1% of the loan amount of each new Discover student loan. Reward redemption period is limited. 0.25% Auto Debit Reward 0.25% interest rate reduction while enrolled in automatic debit payments during repayment Application Methods Online at DiscoverStudentLoans.com Phone at STUDENT July 1,

35 Health Professions Loans Loan Name Product/Guarantor Code 322/310 Discover Health Professions Loan Student Eligibility At least 18 years old (16 if applying with a cosigner) Enrolled at least half-time and making satisfactory academic progress in one of the following graduate health professions programs: Allopathy, Dentistry, Nursing, Occupational Therapy, Optometry, Osteopathy, Pharmacy, Physical Therapy, Physician Assistant, Podiatry or Veterinary Medicine US citizen, permanent resident or international student (International students require a Social Security number and a cosigner) Must pass a credit check Cosigner Eligibility At least 18 years old US citizen or permanent resident Must pass a credit check Loan Amount Up to 100% of the cost of attendance minus other financial aid $275,000 aggregate borrowing limit for Allopathy, Dentistry, Optometry, Osteopathy, Pharmacy, Podiatry and Veterinary Medicine $180,000 aggregate borrowing limit for Nursing, Occupational Therapy, Physical Therapy and Physician Assistant $1,000 minimum on each loan Loan amounts are certified and disbursed through the school Interest Rates Fixed interest rates ranging from 5.99% APR to 9.74% APR Variable interest rates ranging from 3-Month LIBOR Index % to 3-Month LIBOR Index % (starting rates currently range from 2.99% APR to 6.99% APR) The Annual Percentage Rate (APR) for a variable rate loan may increase during the life of the loan if the 3-Month LIBOR Index increases. This may result in higher monthly payments, an increase in the number of scheduled payments or both. We will adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the interest rate change date ), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or ). July 1,

36 Health Professions Loans Fees Zero Deferment and Forbearance Periods Grace Period Automatic in-school deferment with no payments required while enrolled at least half-time Up to 3 years of deferment during the life of the loan for Active Military Duty Up to 3 years of deferment during the life of the loan for Public Service with the National Oceanic and Atmospheric Administration, Peace Corps, Red Cross, US Public Health Service Commissioned Corps or US Department of State (Fulbright Program) Up to 5 years of deferment during the life of the loan for Residency Up to 12 months of forbearance during the life of the loan 9 months Repayment Options 20 years Students can elect, during the application process, to make $25 fixed, monthly payments while in-school and during grace period to lower overall loan cost Students can choose to have payments deferred, which means no payments are due until 9 months after graduation or enrollment drops below half-time Payments can be made anytime to help reduce the overall cost of the loan and there is never a penalty for prepaying Loan Forgiveness Rewards for Good Grades In the event of the primary borrower s death or permanent disability At least a 3.0 GPA (or equivalent) qualifies for a one-time cash reward of 1% of the loan amount of each new Discover student loan. Reward redemption period is limited. 0.25% Auto Debit Reward 0.25% interest rate reduction while enrolled in automatic debit payments during repayment Application Methods Online at DiscoverStudentLoans.com Phone at STUDENT July 1,

37 Residency Loans Loan Name Discover Residency Loan Student Eligibility At least 18 years old Graduated within the past 12 months, or enrolled at least half-time and making satisfactory academic progress in the final year of study in a graduate health professions program US citizen, permanent resident or international student (International students require a Social Security number and a cosigner) Must pass a credit check Cosigner Eligibility At least 18 years old US citizen or permanent resident Must pass a credit check Loan Amount Up to $18,000 for Allopathy, Dentistry, Optometry, Osteopathy, Pharmacy, Podiatry and Veterinary Medicine ($275,000 aggregate borrowing limit) Up to $5,000 for Nursing, Occupational Therapy, Physical Therapy and Physician Assistant ($180,000 aggregate borrowing limit) $1,000 minimum on each loan Loan amounts are disbursed to the borrower via check or direct deposit For residency, internship, relocation and board exam review expenses Interest Rates Fixed interest rates ranging from 5.99% APR to 9.99% APR Variable interest rates ranging from 3-Month LIBOR Index % to 3-Month LIBOR Index % (starting rates currently range from 2.99% APR to 7.24% APR) The Annual Percentage Rate (APR) for a variable rate loan may increase during the life of the loan if the 3-Month LIBOR Index increases. This may result in higher monthly payments, an increase in the number of scheduled payments or both. We will adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the interest rate change date ), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or ). July 1,

38 Residency Loans Fees Deferment and Forbearance Periods Grace Period Repayment Options Loan Forgiveness Zero Automatic in-school deferment with no payments required while enrolled at least half-time Up to 3 years of deferment during the life of the loan for Active Military Duty Up to 3 years of deferment during the life of the loan for Public Service with the National Oceanic and Atmospheric Administration, Peace Corps, Red Cross, US Public Health Service Commissioned Corps or US Department of State (Fulbright Program) Up to 5 years of deferment during the life of the loan for Residency Up to 12 months of forbearance during the life of the loan Ends 9 months after graduation 20 years Students can elect, during the application process, to make $25 fixed, monthly payments while in-school and during grace period to lower overall loan cost Students can choose to have payments deferred, which means no payments are due until 9 months after graduation or enrollment drops below half-time Payments can be made anytime to help reduce the overall cost of the loan and there is never a penalty for prepaying In the event of the primary borrower s death or permanent disability 0.25% Auto Debit Reward 0.25% interest rate reduction while enrolled in automatic debit payments during repayment Application Methods Online at DiscoverStudentLoans.com Phone at STUDENT July 1,

39 Law Loans Loan Name Discover Law Loan Product/Guarantor Code 323/310 Student Eligibility At least 18 years old (16 if applying with a cosigner) Enrolled at least half-time and making satisfactory academic progress in a graduate law degree program US citizen, permanent resident or international student (International students require a Social Security number and a cosigner) Must pass a credit check Cosigner Eligibility At least 18 years old US citizen or permanent resident Must pass a credit check Loan Amount Up to 100% of the cost of attendance minus other financial aid $180,000 aggregate borrowing limit $1,000 minimum on each loan Loan amounts are certified and disbursed through the school Interest Rates Fixed interest rates ranging from 5.99% APR to 9.74% APR Variable interest rates ranging from 3-Month LIBOR Index % to 3-Month LIBOR Index % (starting rates currently range from 2.99% APR to 6.99% APR) The Annual Percentage Rate (APR) for a variable rate loan may increase during the life of the loan if the 3-Month LIBOR Index increases. This may result in higher monthly payments, an increase in the number of scheduled payments or both. Fees Zero We will adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the interest rate change date ), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or ). July 1,

40 Law Loans Deferment and Forbearance Periods Grace Period Repayment Options Loan Forgiveness Automatic in-school deferment with no payments required while enrolled at least half-time Up to 3 years of deferment during the life of the loan for Active Military Duty Up to 3 years of deferment during the life of the loan for Public Service with the National Oceanic and Atmospheric Administration, Peace Corps, Red Cross, US Public Health Service Commissioned Corps or US Department of State (Fulbright Program) Up to 5 years of deferment during the life of the loan for Residency Up to 12 months of forbearance during the life of the loan 9 months 20 years Students can elect, during the application process, to make $25 fixed, monthly payments while in-school and during grace period to lower overall loan cost Students can choose to have payments deferred, which means no payments are due until 9 months after graduation or enrollment drops below half-time Payments can be made anytime to help reduce the overall cost of the loan and there is never a penalty for prepaying In the event of the primary borrower s death or permanent disability Rewards for Good Grades At least a 3.0 GPA (or equivalent) qualifies for a one-time cash reward of 1% of the loan amount of each new Discover student loan. Reward redemption period is limited. 0.25% Auto Debit Reward 0.25% interest rate reduction while enrolled in automatic debit payments during repayment Application Methods Online at DiscoverStudentLoans.com Phone at STUDENT July 1,

41 Bar Exam Loans Loan Name Discover Bar Exam Loan Student Eligibility At least 18 years old Graduated within the past 6 months, or enrolled at least half-time and making satisfactory academic progress in the final year of study in a graduate law degree program US citizen, permanent resident or international student (International students require a Social Security number and a cosigner) Must pass a credit check Cosigner Eligibility At least 18 years old US citizen or permanent resident Must pass a credit check Loan Amount Up to $16,000 $180,000 aggregate borrowing limit $1,000 minimum on each loan Loan amounts are disbursed to the borrower via check or direct deposit Interest Rates Fixed interest rates ranging from 5.99% APR to 11.24% APR Variable interest rates ranging from 3-Month LIBOR Index % to 3-Month LIBOR Index % (starting rates currently range from 2.99% APR to 8.49% APR) The Annual Percentage Rate (APR) for a variable rate loan may increase during the life of the loan if the 3-Month LIBOR Index increases. This may result in higher monthly payments, an increase in the number of scheduled payments or both. Fees Zero We will adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the interest rate change date ), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or ). July 1,

42 Bar Exam Loans Deferment and Forbearance Periods Grace Period Repayment Options Loan Forgiveness Automatic in-school deferment with no payments required while enrolled at least half-time Up to 3 years of deferment during the life of the loan for Active Military Duty Up to 3 years of deferment during the life of the loan for Public Service with the National Oceanic and Atmospheric Administration, Peace Corps, Red Cross, US Public Health Service Commissioned Corps or US Department of State (Fulbright Program) Up to 5 years of deferment during the life of the loan for Residency Up to 12 months of forbearance during the life of the loan Ends 9 months after graduation 20 years Students can elect, during the application process, to make $25 fixed, monthly payments while in-school and during grace period to lower overall loan cost Students can choose to have payments deferred, which means no payments are due until 9 months after graduation or enrollment drops below half-time Payments can be made anytime to help reduce the overall cost of the loan and there is never a penalty for prepaying In the event of the primary borrower s death or permanent disability 0.25% Auto Debit Reward 0.25% interest rate reduction while enrolled in automatic debit payments during repayment Application Methods Online at DiscoverStudentLoans.com Phone at STUDENT July 1,

43 MBA Loans Loan Name Discover MBA Loan Product/Guarantor Code 324/310 Student Eligibility At least 18 years old (16 if applying with a cosigner) Enrolled at least half-time and making satisfactory academic progress in a graduate business degree program US citizen, permanent resident or international student (International students require a Social Security number and a cosigner) Must pass a credit check Cosigner Eligibility At least 18 years old US citizen or permanent resident Must pass a credit check Loan Amount Up to 100% of the cost of attendance minus other financial aid $180,000 aggregate borrowing limit $1,000 minimum on each loan Loan amounts are certified and disbursed through the school Interest Rates Fixed interest rates ranging from 5.99% APR to 9.74% APR Variable interest rates ranging from 3-Month LIBOR Index % to 3-Month LIBOR Index % (starting rates currently range from 2.99% APR to 6.99% APR) The Annual Percentage Rate (APR) for a variable rate loan may increase during the life of the loan if the 3-Month LIBOR Index increases. This may result in higher monthly payments, an increase in the number of scheduled payments or both. Fees Zero We will adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the interest rate change date ), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or ). July 1,

44 MBA Loans Deferment and Forbearance Periods Grace Period Repayment Options Loan Forgiveness Automatic in-school deferment with no payments required while enrolled at least half-time Up to 3 years of deferment during the life of the loan for Active Military Duty Up to 3 years of deferment during the life of the loan for Public Service with the National Oceanic and Atmospheric Administration, Peace Corps, Red Cross, US Public Health Service Commissioned Corps or US Department of State (Fulbright Program) Up to 5 years of deferment during the life of the loan for Residency Up to 12 months of forbearance during the life of the loan 9 months 20 years Students can elect, during the application process, to make $25 fixed, monthly payments while in-school and during grace period to lower overall loan cost Students can choose to have payments deferred, which means no payments are due until 9 months after graduation or enrollment drops below half-time Payments can be made anytime to help reduce the overall cost of the loan and there is never a penalty for prepaying In the event of the primary borrower s death or permanent disability Rewards for Good Grades At least a 3.0 GPA (or equivalent) qualifies for a one-time cash reward of 1% of the loan amount of each new Discover student loan. Reward redemption period is limited. 0.25% Auto Debit Reward 0.25% interest rate reduction while enrolled in automatic debit payments during repayment GMAT Test-Taker Reward 0.25% interest rate reduction is applied immediately after loan disbursement for the life of the loan Eligible borrowers must have taken the GMAT within five years of submitting their loan application Application Methods Online at DiscoverStudentLoans.com Phone at STUDENT July 1,

45 Graduate Loans Loan Name Discover Graduate Loan Product/Guarantor Code 321/310 Student Eligibility At least 18 years old (16 if applying with a cosigner) Enrolled at least half-time and making satisfactory academic progress in a 4- or 5-year graduate degree program US citizen, permanent resident or international student (International students require a Social Security number and a cosigner) Must pass a credit check Cosigner Eligibility At least 18 years old US citizen or permanent resident Must pass a credit check Loan Amount Up to 100% of the cost of attendance minus other financial aid $150,000 aggregate borrowing limit $1,000 minimum on each loan Loan amounts are certified and disbursed through the school Interest Rates Fixed interest rates ranging from 5.99% APR to 10.74% APR Variable interest rates ranging from 3-Month LIBOR Index % to 3-Month LIBOR Index % (starting rates currently range from 2.99% APR to 7.99% APR) The Annual Percentage Rate (APR) for a variable rate loan may increase during the life of the loan if the 3-Month LIBOR Index increases. This may result in higher monthly payments, an increase in the number of scheduled payments or both. Fees Zero We will adjust the rate quarterly on each January 1, April 1, July 1 and October 1 (the interest rate change date ), based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or ). July 1,

46 Graduate Loans Deferment and Forbearance Periods Grace Period Repayment Options Loan Forgiveness Automatic in-school deferment with no payments required while enrolled at least half-time Up to 3 years of deferment during the life of the loan for Active Military Duty Up to 3 years of deferment during the life of the loan for Public Service with the National Oceanic and Atmospheric Administration, Peace Corps, Red Cross, US Public Health Service Commissioned Corps or US Department of State (Fulbright Program) Up to 5 years of deferment during the life of the loan for Residency Up to 12 months of forbearance during the life of the loan 9 months 20 years Students can elect, during the application process, to make $25 fixed, monthly payments while in-school and during grace period to lower overall loan cost Students can choose to have payments deferred, which means no payments are due until 9 months after graduation or enrollment drops below half-time Payments can be made anytime to help reduce the overall cost of the loan and there is never a penalty for prepaying In the event of the primary borrower s death or permanent disability Rewards for Good Grades At least a 3.0 GPA (or equivalent) qualifies for a one-time cash reward of 1% of the loan amount of each new Discover student loan. Reward redemption period is limited. 0.25% Auto Debit Reward 0.25% interest rate reduction while enrolled in automatic debit payments during repayment Application Methods Online at DiscoverStudentLoans.com Phone at STUDENT July 1,

47 Appendix B: Additional Information July 1,

48 General Information Length of time in student loan industry Source of funds Student loan provider affiliations Loan servicing Selling loans Business continuity/disaster plan Cross-sell products and services Membership/banking relationship Discover Student Loans launched in 2007 and is supported by the financial strength and experience of Discover Bank. In addition, Discover acquired The Student Loan Corporation from Citibank, N.A. in December 2010, which brought over 29 years of student loan experience to Discover Student Loans. We are a large, stable lender with $75 billion in assets one of the highest capital ratios in the industry. Our primary source for new student loan funding is deposits, which does not rely on short-term, credit-sensitive funding sources. Discover Bank is not affiliated with any other student loan providers. We fund, hold and provide most of the servicing of our student loans in-house and have knowledgeable, US-based Student Loan Specialists ready to help our customers 24/7 for the life of the loan. We use third party servicers for some servicing activities. Discover has not sold and does not plan to sell our private loans. Discover has developed and instituted business continuity and disaster recovery plans. Documented recovery strategies and address storage and backup requirements, dependencies, hardware and software requirements, recovery time objectives and recovery point objectives. Discover is a leading provider of credit cards. We do not share our list of customers for credit marketing purposes while students are in school. We may market non-card products that are relevant to our student loan customers and their financial needs. Borrowers can always opt out of any marketing solicitations. There are no memberships or banking relationships required for loan or loan benefits. July 1,

49 General Information Federal loan eligibility We recommend students compare federal and private student loans if they need to borrow and choose the loans that best fit their needs. Direct-to-consumer loans Private loan consolidation Past-due balances Cosigner release Aggregate loan limits Minimum monthly payment Guarantors All of our undergraduate and graduate Discover Student Loans are school certified to confirm enrollment and ensure borrowing is consistent with the cost of attendance less other sources of aid. The Bar Exam and Residency Loans are disbursed to the borrower and may require school verification for enrolled students. We launched our private consolidation loan as part of a pilot program. We hope to make it available to the general public sometime in the future. Discover Student Loans are not available for past-due balances. Borrowers must apply before the enrollment period end date to be eligible for Discover Student Loans. Bar Exam Loans do not require school certification and are available to students who have graduated within the past 6 months. We do not offer a cosigner release. Keeping a cosigner for the loan duration reduces default risk. Aggregate loan limits include all education borrowing. In-School Repayment: Fixed payments ($25 per loan) are due immediately following the first disbursement and continue until 6 or 9 months after separation date (fixed payment period). Full principal and interest payments ($50.00 per month) will be due for 180 or 240 months following the fixed in-school payment period. Deferred Repayment: No payments are due during school and grace periods. The minimum amount due in repayment is $50 per month. Discover Student Loans does not use a guarantor. July 1,

50 Interest Rates and Fees Interest rate or fee reduction for adding a cosigner Variable interest rate adjustments Current 3-Month LIBOR Index In some cases, students applying with a creditworthy cosigner will receive a lower interest rate. We do not charge any fees for any of our Discover Student Loans. Variable interest rates are based on the 3-Month LIBOR Index and adjust quarterly on each January 1, April 1, July 1 and October 1. The interest rate change date, based on the 3-Month LIBOR Index, published in the Money Rates section of the Wall Street Journal 15 days prior to the interest rate change date, rounded up to the nearest one-eighth of one percent (0.125% or ). Visit for APR examples and current rates. Interest rate cap The variable interest rate will never be higher than 18% per year, regardless of the 3- Month LIBOR index. There is no interest rate floor. Capitalizing interest Accruing interest Fees We will capitalize any and all unpaid interest at the beginning of the Repayment Period (the period of the loan when full payment of principal and interest is required) and at the conclusion of any subsequent deferment or forbearance period. At that time, we send a new repayment schedule to the customer that discloses the capitalized interest and minimum monthly payment amount. Unpaid interest is capitalized at the conclusion of any grace, deferment or forbearance periods. We have zero fees, including zero: origination fees, prepayment fees, late payment charges, returned payment charges and deferment or forbearance fees. July 1,

51 Deferment, Forbearance and Repayment In-school deferment Students who are enrolled in school at least half-time can choose unlimited deferment. The student always has the option to make payments ahead of schedule without penalty. Fees for deferment and forbearance We have zero fees for loan deferments or forbearances. Interest will continue to accrue during any deferment or forbearance period. We will capitalize any and all unpaid interest at the beginning of the Repayment Period (the period of the loan when full payment of principal and interest is required) and at the conclusion of any subsequent deferment or forbearance period. At that time, we send a new repayment schedule to the customer that discloses the capitalized interest and minimum monthly payment amount. Repayment options Students can elect, during the application process, to make $25 fixed, monthly payments while in-school and during grace period to lower overall loan cost. Students can choose to have payments deferred, which means no payments are due until 6 or 9 months after graduation or enrollment drops below half-time. Payments can be made anytime to help reduce the overall cost of the loan and there is never a penalty for prepaying. Repayment assistance options are available for students experiencing difficulty repaying. Loan forgiveness policy We forgive loans in the event of the primary borrower s death or permanent disability. July 1,