Terms and Conditions for Student Loan Rewards Based on Good Grades
The Terms and Conditions have been recently updated and will be in effect starting from April 2023.
These specific Terms and Conditions outline the criteria for eligibility and the process for redeeming a 1% cash reward for achieving high grades. In this context, “You” refers to the borrower, while “We” pertains to Discover Bank.
Kindly note that if you qualify for both the Discover Student Loans Rewards for Good Grades and Discover it® credit cards for students, you must apply separately for each respective reward.
Eligibility for Rewards
If you meet the requirements, you are entitled to one cash reward in each of the following categories.
Category 1: Freshman Students in Undergraduate Programs
You will be eligible for a 1% cash reward on the amount certified by your school if:
- Your cumulative Grade Point Average (GPA) from high school is at least 3.0.
- You hold either US citizenship or permanent residency status.
- Between May 1, 2020, and May 20, 2023, you submitted an application for the Discover Undergraduate Loan for your freshman year, were approved, and accepted the loan.
- This loan represents your initial transaction with Discover Student Loans. If you have previously refunded a loan, you will not be eligible for the high school reward. Please be advised that if you apply for and are approved for multiple loans, you will only qualify for the reward on your first accepted loan.
- Your eligible student loan has had its first disbursement sent to your school.
- You redeem your reward after accepting your loan and within 6 months of the initial disbursement. If eligible for Category 2, you may also redeem an additional reward.
Please note that this reward is considered taxable income and may be subjected to reporting on IRS Form 1099-MISC. We strongly recommend seeking advice from a tax professional for guidance.
Category 2: Undergraduate and Graduate Students
You will be eligible for a 1% cash reward on the disbursed loan balance if:
- Your Grade Point Average (GPA) for any academic term covered by the loan is at least 3.0 (or the equivalent). To determine your grade eligibility by school and program, please log in to your account.
- You submitted an application for the Discover Undergraduate, Health Professions, Law, MBA, or Graduate Loan on or after May 1, 2014, and received the loan.
- There are no pending disbursements remaining on your eligible student loan.
- You redeem your reward within 6 months after the end of the academic term covered by the loan or within 6 months after the final disbursement; whichever occurs later. Please be aware that if the loan spans multiple academic terms, you are only eligible to redeem your reward after the conclusion of the final academic term covered by the loan.
Receiving this reward may have tax implications. If reward checks are mailed on or after January 1, 2018, they will reduce the amount of interest reported on Forms 1098-E (Student Loan Interest Statement) over the remaining life of your loan. In certain situations, a Form 1099-MISC may be issued for some or all of the reward amount, such as in the event of complete loan repayment prior to the end of the repayment term. Please note that we are unable to provide tax advice, and we encourage you to consult a tax advisor with any questions.
It is your responsibility to notify us if you do not receive an expected 1% cash reward, once you complete and submit the redemption form.
