request for proposal · • scholarship search – search over 3 million scholarships worth more...

Request for Proposal

STUDENT LOANS

Undergraduate

Graduate

MBA

Health Professions & Residency

Law & Bar Exam

We Help Make Education Happen

Discover Student Loans are made by Discover Bank Confidential and Proprietary©2020 Discover Bank, Member FDIC For Financial Aid Office Use Only 2

STUDENT LOANS

Table of Contents

Who We Are and What We Stand For 4

Here for You and Your Students 8

Borrower Information 13

Loan Details 23

Appendix: Additional Information 40

3Discover Student Loans are made by Discover Bank Confidential and Proprietary©2020 Discover Bank, Member FDIC For Financial Aid Office Use Only

STUDENT LOANS

Who We Are and What We Stand For


STUDENT LOANS

Vision and Mission

• Help people spend smarter, manage debt better and save more to achieve a brighter future

• Be the leading consumer bank and payments provider

One of leading consumer banks in the US

• Top 25 domestic Bank Holding Company based on assets1

• Strong brand, leadership position in card cashback rewards, superior customer experience

and strong credit risk management capabilities

• Large, loyal customer base who give Discover Student Loans very strong customer reviews:

4.5 out of 5 star rating on 1,020 customer reviews2

One of largest global payments networks

• One of two US credit card issuers with a proprietary branded network

• Discover Global Network is accepted at 44M+ global merchant locations

1 Based on S&P Comparative Statistics: US Banks (April 2019)2 Source: DiscoverStudentLoans.com as of 11/13/2019

Discover Financial Services


STUDENT LOANS

The second largest lender in private student loans.1 We pride ourselves on excellent customer

service and rock-solid financial stability. We have knowledgeable, US-based Student Loan Specialists ready to help our customers 24/7.

We understand that determining how to pay for college and graduate school is evolving, and we provide schools, students and their families with tools and resources to help them navigate these changes and make the dream of a college education a reality.

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 require school certification and disburse loans through the school so students won’t borrow more than they need and tuition bills get paid on time.

1 Source: MeasureOne Quarterly Originations Report as of June 2019, excludes consolidation loans; 2018-2019 Academic Year

Discover Student Loans


STUDENT LOANS

We provide loans to students at over 2,400 colleges and graduate schools across the country to help them cover up to 100% of school-certified costs. We also provide post-graduate loans for law students who are preparing to take the bar exam and health professions students during their internship or residency.

We offer these benefits throughout the life of the loan:

• Zero Fees – No loan application fees, no origination fees and no late fees.

• Reward for Good Grades – Students who get at least a 3.0 GPA (or equivalent) qualify for a one-time cash reward on each new Discover undergraduate and graduate student loan. Reward redemption period is limited.

• Auto Debit Reward – Borrowers get a 0.25% interest rate reduction while enrolled in automatic payments.

• Multi-Year Option – Eligible applicants may pre-qualify now for future loans toward their undergraduate degree. See slide 41 for additional details.

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.

Student Loans With Great Features and Benefits


STUDENT LOANS

Here for You and Your Students


STUDENT LOANS

Lender Name Discover Bank

Brand Name for Lender List Discover Student Loans

Lender ID / Servicer Code 831312

Priority Services 1-877-321-50188:00 a.m. – 9:00 p.m. ETMonday – FridayFax: 1- 224-813-5208 [email protected]

Special Delivery Discover Student LoansCustomer Service5420 W 1730 SSalt Lake City, UT 84104

Regular Mail Discover Student LoansCustomer ServicePO Box 30947Salt Lake City, UT 84130-0947

Return Of Funds First Class mail to:Discover Student Loans c/o JP Morgan ATTN: Lockbox #24298131 S. Dearborn – 6th FloorChicago, IL 60603

School Services


STUDENT LOANS

Contact Information Type of Service

Priority Services [email protected]

• Account inquiries• School certifications• Loan adjustments• Facilitate resolution of any servicing issues • Registering users on

DiscoverStudentLoans.com

• Answer questions regarding online access

School Relationship Manager • Answer a variety of product questions • Facilitate complex situations that may need

escalation

We are committed to providing excellent service to you and your staff

A Dedicated Team


STUDENT LOANS

Certification Methods Disbursement Methods

ELMNet ELM National Disbursement Network

Great Lakes ScholarNet Great Lakes CDS

iLink iLink CDS

SBS with Commonline 4 EFT to your schools bank account

Online via our website Individual Paper Check

Fax

We provide a variety of processing options to support your schools certification and disbursement preferences

Certification and Disbursement Options


STUDENT LOANS

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 email or our website, DiscoverStudentLoans.com.

Online Support Available 24/7


STUDENT LOANS

Borrower Information


STUDENT LOANS

Customer Service for Students and Cosigners Phone:• 1-800-STUDENT(1-800-788-3368) 24 hours a day, 7 days a week• Military Service members 1-844-DFS-4MIL (1-844-337-4645)

TDD: 1-800-223-5614

Borrowers living outside of the US can call at 1-801-619-2551

Email:For specific questions about borrower account or application, log in at DiscoverStudentLoans.com and send us a secure message

Online Document Upload: Upload documents securely anywhere, anytime • Log in at DiscoverStudentLoans.com

• Use Access Code for applications in progress

Regular Mail Special Delivery (FedEx, UPS, etc.): Regular Mail:Discover Student Loans Discover Student LoansCustomer Service Customer Service5420 W 1730 S PO Box 30948Salt Lake City, UT 84104 Salt Lake City, UT 841300948

Borrower Payments Online: Mail:DiscoverStudentLoans.com Discover Student Loans

PO Box 6107Carol Stream, IL 60197-6107

Borrower Information


STUDENT LOANS

Sign and accept loan.

• Borrower and cosigner (if applicable) sign loan documents.

• We verify degree/enrollment for bar exam and residency loans.

• Borrower accepts the loan.• We support a school cert

last process. After the applicant accepts the loan, we send undergraduate and graduate loans for school certification.

Apply online or by phone.

• We review credit history and let the student know if he/she qualifies for the loan.

• The cosigner (if applicable) submits a cosigner application. We will review cosigner’s credit history and notify the cosigner and student of our credit decision.

• If eligible, students will find out if they are pre-qualified for future loans during the application process.

Final disclosure and disbursement.

• For undergraduate and graduate loans, we send funds directly to the school after we receive school certification.

• For bar exam and residency loans, we send funds to the borrower via check or direct deposit.

Step 01 Step 02 Step 03

Students can apply anytime online at DiscoverStudentLoans.com or 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, email, text messages (when opted in) and phone to review required steps for application and loan approval and help ensure they get their student loan on time.

The Application Process


STUDENT LOANS

DiscoverStudentLoans.com has tips and tools to assist students as they learn aboutfinancial aid, apply for private student loans and prepare for repayment.

We feature Live Chat and secure email on our website as an added convenience for customers to get the answers they need.

On DiscoverStudentLoans.com, students and cosigners can access their accountand:

• Apply for a loan from desktop or mobile devices• Electronically sign or download the promissory note, Self-Certification Form and

Cosigner Addendum• Upload documents electronically• View loan balances and interest rates• Update personal information (phone, address, email, password)• Print forms for deferment and automatic payment enrollment• View loan due date, payment history and make payments

Convenient Online Support


STUDENT LOANS

Discover Student Loans makes it easy 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 these tools at DiscoverStudentLoans.com/Scholarship.

• Scholarship Search – Search over 3 million scholarships worth more than $18 billion. No registration required.

• Scholarship Award – Students and parents can enter to win a $5,000 Discover® Student Loans Scholarship Award through January 31, 2020. We are giving away a total of $60,000 in scholarships to 12 individuals to help cover college expenses. No purchase or student loan necessary to win. For official rules visitscholarship.collegecovered.com/rules.html.

Scholarships


STUDENT LOANS

We understand that students and parents have a lot on their minds when it comes to figuring out how to pay for college. Find content and resources organized in a way that is simple and easy to understand at DiscoverStudentLoans.com.

The College Planning 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 practical advice about preparing for on-campus visits and choosing between in-state and out-of-state schools.

Financial Literacy Tools at Your Fingertips


STUDENT LOANS

CollegeCovered.com was created to provide students, parents and high school counselors with the know-how to plan and pay for college and offers a variety of resources and tips for each step of the college planning process.

This website includes content and tools including:• Our FAFSA® assistant• College Planning Calendar• Award Letter Comparison Tool• College Planning Videos• Free Scholarship Search Engine• Resources for Counselors

FAFSA is a registered trademark of the US Department of Education and is not affiliated with Discover Student Loans

College Planning Resources


STUDENT LOANS

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 CosignerWe evaluate all student loan applications for individual eligibility first. Students with no credit history or a low credit score may find it difficult to qualify for a private student loan on their own. Students may have the option to apply for a Discover student loan with a creditworthy cosigner. Students who qualify for the loan as an individual may 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 CreditWe understand that for many students, the first time they take out a loan is when they borrow for college. The Repayment Help section on our website includes tips for reducing student loans costs and building and maintaining a good credit history, as well as debt management advice. Students can also get information about loan repayment and details about their deferment options.

Underwriting and Borrowing Responsibly


STUDENT LOANS

In compliance with the Title X of the Higher Education Opportunity Act, lenders are required to provide schools with whom they have a Preferred Lender Arrangement information that is contained on their Private Loan Application and Solicitation Disclosure forms.

In addition, the Department of Education has indicated that Application/Solicitation disclosures need to be provided for a comprehensive-neutral list. We are providing this information so that you will have it available should your school choose to have a Preferred Lender Arrangement or a comprehensive-neutral list for which disclosure is required.

If you have a preferred lender arrangement or a comprehensive list, our Application and Solicitation Disclosure forms can be found at DiscoverStudentLoans.com/Forms.

A Preferred Lender Arrangement is not required, but having an arrangement can assist your students by eliminating confusion, and helping them to narrow their choices to those lenders that provide the best loan programs and services for them.

For more information regarding Preferred Lender Arrangements, please feel free to contact your School Relationship Manager.

Application and Solicitation Disclosure Forms


STUDENT LOANS

Discover Student Loans is committed to helping our student loan customers avoid the negative consequences of delinquency and default. Our RepaymentAssistance department contacts customers before and during repayment todeliver support and identify solutions for successful repayment.

• While the loan is in deferment or forbearance, we send quarterly statements to students so they can see how much interest is accruing and know how to make optional payments that may reduce the overall cost of their loan.

• Customers can manage their account online 24/7. Customers 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.

• Repayment assistance options are available for students experiencing difficulty repaying (See page 42 for details).

Proactive Efforts to Limit Default


STUDENT LOANS

Loan Details


STUDENT LOANS

Loan Type Lowest Rate APR Highest Rate APR

Undergraduate Loan 2.80% 11.37%

Graduate Loan 3.74% 11.37%

MBA Loan 3.74% 11.24%

Health Professions Loan 3.74% 9.37%

Residency Loan 5.97% 8.37%

Law Loan 3.74% 9.37%

Bar Exam Loan 6.37% 11.37%

Private Consolidation Loan 3.99% 7.24%

Loan Type Lowest Rate APR Highest Rate APR

Undergraduate Loan 4.74% 12.49%

Graduate Loan 4.99% 12.24%

MBA Loan 4.99% 11.49%

Health Professions Loan 4.99% 9.74%

Residency Loan 7.34% 9.74%

Law Loan 4.99% 10.24%

Bar Exam Loan 7.74% 12.74%

Private Consolidation Loan 3.99% 6.99%

Variable Interest Rates (Based on 3-Month LIBOR + Margin)

Fixed Interest Rates

Lowest rates shown on our in-school undergraduate and graduate school loans include a 0.35% interest-only repayment discount for making interest payments while in school and during the grace period and a 0.25% interest rate reduction while enrolled in automatic payments. See Interest-only repayment discount Terms and Conditions at: https://www.discover.com/student-loans/interestonly. Lowest rates shown on our Bar Exam, Residency and Private Consolidation loans include a 0.25% Auto Debit Reward. If the student is applying for a Bar Exam or Residency loan, they may receive an interest rate discount (0.35%) if, during the application process, they selected the interest-only repayment option and make interest-only payments during the in-school and grace periods. Students applying for a Bar Exam or Residency Loan must be enrolled in school at least half-time at the time they submit their application to be eligible for the interest-only repayment option and discount.

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 may adjust the variable 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 0.00125).

Interest Rates


APRs reflect interest rates as of January 1, 2020

STUDENT LOANS

Loan Name Discover Undergraduate Loans

Product/Guarantor Code 320/310

Student Eligibility • At least 16 years old at the time of loan application. Cosigner required if under 18.• Enrolled at least half-time and making satisfactory academic progress in a Bachelor’s or Associate’s degree

program at an eligible school.• Students who are enrolled less than half-time during the summer term or during the final term of their degree

program may be eligible if they were enrolled at least half-time in the calendar year. Schools have the option to certify applications as half-time or full-time for borrowers who meet the above criteria.

• US citizen, permanent resident or international student (International students require a creditworthy cosigner who is a US Citizen or Permanent Resident).

• Must pass a credit check

Cosigner Eligibility • At least 18 years old• US citizen or permanent resident• Must pass a credit check

Multi-Year Option • Applicants may be eligible to pre-qualify now for future undergraduate loans.• When it comes time for students to apply for their next loan, they must apply with the same cosigner, at the

same school, and for the same undergraduate degree.• Borrowers and cosigners will both need to pass a credit review for each new loan. Approval of future loans and

interest rates offered will be based on our credit criteria and interest rates in effect at the time the student applies.

• Applications for future academic periods under the Multi-Year Option won’t impact the students’ or cosigners’ credit scores.

• When it is time to apply for another loan, paperwork will be pre-filled with information from the initial application.

Loan Amount • Up to 100% of the cost of attendance minus other financial aid• Aggregate loan limits apply• $1,000 minimum on each loan• Loan amounts are certified and disbursed through the school

Undergraduate Loans


STUDENT LOANS

Fees Zero

Deferment Type and Duration • Students automatically qualify for an in-school deferment while enrolled at least half-time in a degree program at an eligible school, unless the student elected, during the application process, to make either interest-only or $25 fixed, monthly payments while in school and during the grace period.

• 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 Medical Residency.

Forbearance Type and Duration Students may be eligible for a cumulative maximum of 12 months of forbearance due to the following temporary hardships:• A lack of sufficient income• Excessive student loan burden• A temporary increase in monthly expensesPlease see DiscoverStudentLoans.com/RepayAssistance for more information.

Grace Period 6 months

Undergraduate Loans (continued)


STUDENT LOANS

Repayment Options • 15-Year repayment term• In-School Interest-Only – Students can elect, during the application process, to make interest-only monthly

payments while in school and during the grace period to lower overall loan cost and receive a 0.35% interest rate discount.

• In-School Fixed – Students can elect, during the application process, to make $25 fixed, monthly payments while in school and during the grace period to lower overall loan cost.

• Deferred – 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.

Reward for Good Grades At least a 3.0 GPA (or equivalent) qualifies for a one-time cash reward on each new Discover undergraduate and graduate student loan. Reward redemption period is limited.

Auto Debit Reward 0.25% interest rate reduction while enrolled in automatic payments

Application Methods Online at DiscoverStudentLoans.com or by phone at 1-800-STUDENT

Undergraduate Loans (continued)


STUDENT LOANS

Loan Name Discover Graduate Loans


Student Eligibility • At least 16 years old at the time of loan application. Cosigner required if under 18.• Enrolled at least half-time and making satisfactory academic progress in a graduate degree program.• Students who are enrolled less than half-time during the summer term or during the final term of their degree






Fees Zero





Graduate Loans


STUDENT LOANS











Graduate Loans (continued)


STUDENT LOANS

Loan Name Discover MBA Loans


Student Eligibility • At least 16 years old at the time of loan application. Cosigner required if under 18• Enrolled at least half-time and making satisfactory academic progress in a graduate business degree program• Students who are enrolled less than half-time during the summer term or during the final term of their degree






Fees Zero

Deferment Type and Duration • Students automatically qualify for an in-school deferment while enrolled at least half-time in a degree program at an eligible school, unless the student elected, during the application process to make either interest-only or $25 fixed, monthly payments while in school and during the grace period.




MBA Loans


STUDENT LOANS











MBA Loans (continued)


STUDENT LOANS

Loan Name Discover Health Professions Loans


Student Eligibility • At least 16 years old at the time of loan application. Cosigner required if under 18.• 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.

• Students who are enrolled less than half-time during the summer term or during the final term of their degree program may be eligible if they were enrolled at least half-time in the calendar year. Schools have the option to certify applications as half-time or full-time for borrowers who meet the above criteria.





Fees Zero





Health Professions Loans


STUDENT LOANS











Health Professions Loans (continued)


STUDENT LOANS

Loan Name Discover Residency Loans

Student Eligibility • At least 16 years old at the time of loan application. Cosigner required if under 18.• Graduated within the past 12 months, or be enrolled 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 creditworthy cosigner

who is a 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 • Up to $5,000 for Nursing, Occupational Therapy, Physical Therapy and Physician Assistant• Aggregate loan limits apply• $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

Fees Zero

Deferment Type and Duration • Students qualify for an in-school deferment while enrolled at least half-time in a degree program at an eligible school, unless the student elected, during the application process, to make either interest-only or $25 fixed, monthly payments while in school and during the grace period.




Residency Loans


STUDENT LOANS

Forbearance Type and Duration Students may be eligible for a cumulative maximum of 12 months of forbearance due to the following temporary hardships:• A lack of sufficient income• Excessive student loan burden• A temporary increase in monthly expensesPlease see DiscoverStudentLoans.com/RepayAssistance for more information

Grace Period For students who defer payments while in school, ends 9 months after graduation or after enrollment drops below half-time.


payments while in school and during the grace period to lower overall loan cost and receive a 0.35% interest rate discount. You must be enrolled in school at least half-time at the time you submit your application to be eligible for the interest-only repayment option and discount.

• In-School Fixed – Students can elect, during the application process, to make $25 fixed, monthly payments while in school and during the grace period to lower overall loan cost. You must still be attending school at least half-time at the time you submit your application to be eligible for the fixed monthly repayment option.





Residency Loans (continued)


STUDENT LOANS

Loan Name Discover Law Loans


Student Eligibility • At least 16 years old at the time of loan application. Cosigner required if under 18.• Enrolled at least half-time and making satisfactory academic progress in a graduate law degree program• Students who are enrolled less than half-time during the summer term or during the final term of their degree






Fees Zero





Law Loans


STUDENT LOANS











Law Loans (continued)


STUDENT LOANS

Loan Name Discover Bar Exam Loans

Student Eligibility • At least 16 years old at the time of loan application. Cosigner required if under 18.• Graduated within the past 6 months, or be enrolled and making satisfactory academic progress in the final year

of study in a graduate law degree program.• US citizen, permanent resident or international (International students require a creditworthy cosigner who is a

US Citizen or Permanent Resident).• Must pass a credit check


Loan Amount • Up to $16,000• Aggregate loan limits apply• $1,000 minimum on each loan• Loan amounts are disbursed to the borrower via check or direct deposit

Fees Zero

Deferment Type and Duration • Students qualify for an in-school deferment while enrolled at least half-time in a degree program at an eligible school, unless the student elected, during the application process, to make either interest-only or $25 fixed, monthly payments while in school and during the grace period.




Bar Exam Loans


STUDENT LOANS


Grace Period For students who defer payments while in school, ends 9 months after graduation or after enrollment drops below half-time.


payments while in school and during the grace period to lower overall loan cost and receive a 0.35% interest rate discount. You must be enrolled in school at least half-time at the time you submit your application to be eligible for the interest-only repayment option and discount.

• In-School Fixed – Students can elect, during the application process, to make $25 fixed, monthly payments while in school and during the grace period to lower overall loan cost. You must still be attending school at least half-time at the time you submit your application to be eligible for the fixed monthly repayment option.





Bar Exam Loans (continued)


STUDENT LOANS

Appendix

Multi-Year Option

Repayment Assistance Options

Application Solicitation Disclosure

Forms

Additional Information


STUDENT LOANS

• Eligible applicants may pre-qualify now for future loans toward their

undergraduate degree

Student Loans with Multi-Year Option


STUDENT LOANS

Deferment A temporary postponement of payments. Students must be enrolled in school at least half-time, on active military duty, serving in a qualified public service organization or in a medical residency.

Forbearance A forbearance postpones loan payments for up to 12 months during the entire term of the loan. Customers cannot receive 12 months of forbearance consecutively. Customers are required to make a certain number of on-time payments to be eligible for additional months of forbearance for a cumulative maximum of 12 months.

Students must be experiencing hardship due to a lack of sufficient income, excessive student loan burden, or a temporary increase in monthly expenses.

Early Repayment Assistance Program

A 3-month postponement of payments. Students must be within the first 3 months of their repayment period.

Reduced Payment The Minimum Monthly Payment is reduced to an amount greater than or equal to the monthly interest amount, subject to a $50.00 minimum, for an initial period of six months.

Student loan(s) must be less than 60 days delinquent.

Payment Extension 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 have been in repayment for more than six months, their student loan(s) are more than 60 or more days delinquent and their loans have not been in forbearance for the past six months.

Hardship The interest rate is temporarily reduced for up to 12 months to lower Minimum Monthly Payment amount, subject to a $50.00 minimum.

Certain loans may be eligible if students are experiencing extreme economic hardship or excessive student loan burden.

For borrowers having difficulty making their monthly loan payments

Certain options may be renewed or recommenced if eligibility requirements are met. Participation in one program may affect eligibility for another program. Students can call our Repayment Assistance team at 1-800-STUDENT to determine what option is right for them.

Repayment Assistance Options


STUDENT LOANS

Length of time in student loan industry

Discover Student Loans launched in July 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.

Student loan provider affiliations Discover Bank is not affiliated with any other student loan providers.

Loan servicing We fund, hold and service our student loans in-house and have knowledgeable, US-based Student Loan Specialistsready to help our customers anytime 24/7 for the life of the loan.

Source of Funds We are a large, stable lender with over $109 billion in assets as of 6/30/19. Our primary source for new student loan funding is deposits, which does not rely on short-term, credit-sensitive funding sources.

Call Center Locations Our customer service call centers are located in Phoenix, Arizona and West Valley, Utah.

Servicing 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 email and mail, and we reply within two business days.

Selling loans Discover has not sold and does not plan to sell our private loans.

Business continuity/disaster plan Discover has documented business continuity and disaster recover plans. These include address storage, backup requirements, dependencies, hardware and software requirements, recovery time objectives and recovery point objectives.

Cross-sell products and services Discover is one of the largest direct banks in the United States, seeking to help customers meet their financial needs and achieve brighter financial futures. We offer a broad variety of products, including credit cards, personal loans, student loans, deposit products and home equity loans. In addition to offering direct banking products, Discover provides financial insight and educational resources to help customers better manage their debt. For example: Discover’s Credit Scorecard offers anyone, even if they are not a cardmember, access to their FICO® Credit Score for free.

Discover may offer these relevant products and services to our customers. Borrowers can contact us at any time to limit our marketing offers. For more information please refer to our Privacy Policy at DiscoverStudentLoans.com.

Additional Information


STUDENT LOANS

44

Additional Information (continued)

Membership/banking relationship There are no memberships or banking relationships required for loan or loan benefits.

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.

Credit check A positive credit check is valid on the application it was pulled for, up to 150 days. If the applicant submits an additional loan application within 30 days of the first credit report inquiry, we will use the same credit report inquiry forboth applications. Otherwise, we will pull another credit report.

Second look for student loan borrowers

We have an appeals process for applicants who want to have their applications reviewed a second time. If an application is declined, we send an adverse action letter to the applicant with instructions to initiate an appeal.

Self-certification follow-up We call customers and send out reminders via mail and email.

School certification and verification

All of our undergraduate and graduate student loans are school certified and disbursed to your school 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.

School certification request Once the applicant passes our credit criteria, clears borrower identity verification, submits the signed promissory note, Self-Certification Form and Cosigner Addendum (if applicable), selects a rate and accepts the loan, we will request school certification.

The bar exam and residency loans are disbursed to the borrower and may require school verification for enrolled students. We will not request school verification for students who have a Discover Health Professions or Discover Law Loan for the current academic year.

Rescission period Three business days to cancel the loan after it is received by applicant. Lenders are prohibited by law from making any disbursements during that time.

Aggregate loan limits Aggregate loan limits include all school-certified education borrowing.

Discover Student Loans are made by Discover Bank Confidential and Proprietary©2020 Discover Bank, Member FDIC For Financial Aid Office Use Only

STUDENT LOANS

Changes to loan records Changes to loan records can be made both pre-and post-disbursement. Loan increases can be made up to the credit approved amount and up until the first disbursement has begun processing. After funding has started borrowers must begin a new application for the additional amount.

Loan decreases can be made after the borrower has accepted the terms of the loan.

Borrowers can call us at 1-800-STUDENT to make changes to loan records both pre- and post-disbursement. We will then either approve the request, work with the school to accommodate the request or work with the borrower to complete a new application.

Schools also have the ability to make changes to loan records both pre- and post-disbursement by calling Priority Services at 1-877-321-5018 or online at DiscoverStudentLoans.com.

Reports available for schools We provide detailed reports with borrower information and loan statuses, including: Loan Approvals and Denials Withdrawn Loans Loans Awaiting Promissory Note Loans Awaiting School Certification Loans Pending Disbursement

Schools can download a variety of forms and loan documents online, including promissory notes, privacy and borrower benefit policies and deferment request forms. We can also provide ad hoc reports upon request.

Non-matriculating or certificate students

We do not offer a loan for these situations.

Less than half-time enrollment Discover student loans are available for students enrolled less than half-time in the summer semester or in the last semester before graduation if they were enrolled at least half-time during the same calendar year.

Past-due balances 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. Residency loans do not require school certification and are available to students who have graduated within the past 12 months.



STUDENT LOANS

Cosigner release We do not offer a cosigner release. Keeping a cosigner for the loan duration reduces default risk.

Loan Forgiveness In the event of the primary borrower’s death or permanent disability.

Private loan consolidation Discover Student Loans offers Private Consolidation Loans.

Minimum monthly payment In-School Interest-Only: Required to make interest-only monthly payments while in school and during the grace period to lower overall loan cost. Full principal and interest payments ($50 per month minimum) will be due for 180 or 240 months following the in-school payment period. You must be enrolled in school at least half-time at the time you submit your application to be eligible for in-school repayment options.

In-School Fixed Repayment: Required to make $25 fixed, monthly payments while in school and during the grace period to lower overall loan cost. Full principal and interest payments ($50 per month minimum) will be due for 180 or 240 months following the fixed in-school payment period.

Deferred Repayment: No payments are due while in school and during the grace period. The minimum amount due in repayment is $50 per month.

Fees Zero Fees: That means borrowers will not be required to pay any fees, including no loan fee, origination fee, up-front fee, guarantee fee, disbursement fee, supplemental fee, repayment fee, deferment fee, forbearance fee, late payment fee and returned payment fee.

Current 3-Month LIBOR Index Visit DiscoverStudentLoans.com/Rates

Notifications of product changes We notify students and schools by email and/or mail prior to any changes in loan terms or processes. Applicable information is also updated on our website.

Your School Relationship Manager is the main point of contact for communication on any such changes.

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.



STUDENT LOANS

Accruing interest Interest accrues from 1st disbursement date until the loan is paid in full. Unpaid interest is capitalized at the conclusion of any grace, deferment or forbearance periods.

Capitalizing interest We will capitalize any and all accrued and unpaid interest at the beginning of the repayment period. During a deferment or forbearance period, interest will continue to accrue on the loan. The student can choose to pay the interest as it accrues, or we will add any unpaid interest to principal balance at the end of deferment or forbearance period.

Loan default If a student does not make their required payments by the end of the calendar month in which the loan becomes 120 days past due, then the loan is in default

Principal and interest deferment while in school

Students who are enrolled in school at least half-time automatically qualify for in-school deferment of payments of principal and interest unless they elected, during the application process, to make interest-only or $25 fixed, monthly payments while in school and during the grace period. Interest continues to accrue while in-school. Unpaid interest is added to the principal balance at the end of deferment.

Proactive outreach to collect Rewards

Discover Student Loans will reach out to students to remind them to collect their Rewards for Good Grades after the loan period ends. Students will also be reminded about the Auto Debit Reward prior to entering repayment.

Losing / regaining Auto Debit Reward

Customers will receive Auto Debit Reward while enrolled in automatic payments. If an account is more than 60 days past due we will cancel the enrollment in automatic payments. We will also cancel the enrollment (and reward) when there are two returned payments in a row. The customer may re-enroll in automatic payments and receive Auto Debit Reward even if they previously lost the reward.

Download Forms Students can download a variety of forms including Application & Solicitation Disclosures, Promissory Notes and Self Certification Form at DiscoverStudentLoans.com/Forms.

Code of Conduct The Discover Financial Services Code of Ethics and Business Conduct can be found athttp://www.discoverfinancial.com/company/codeOfEthics.shtml.



Thank You

request for proposal · • scholarship search – search over 3 million scholarships worth more...

Documents