Application & Solicitation Disclosure for ... - Discover

1 Loan Interest Rate & FeesApplication & Solicitation Disclosure for Variable RateUndergraduate LoanLoan Fees and ChargesApplication Fee:ZeroLate Charge:ZeroOrigination Fee:ZeroReturned Check Charge:ZeroRepayment Fee:ZeroLoan Cost ExamplesThe total amount you will pay for this loan will vary depending upon when you start to repay it. This example provides estimatesbased upon four (4) different repayment options available to you while enrolled in Option(While enrolled in school)Amount Provided(Directly to your school)Interest Rate(Highest possiblestarting rate)Loan Term(How long youhave to pay offthe loan)Total Paid over15 years(Includes associatedfees)1.

2 DEFER PAYMENTS Make no payments during the deferment period(automatic in-school deferment). Interest will becharged and added to your loan.$10, yearsstartingafter thedeferment period$32, PAY ONLY THE INTERESTS elect the interest-only in-school paymentoption during the Application process and makeinterest payments but defer payments on theprincipal amount during the deferement period.$10, yearsstartingafter thedeferment period$26, MAKE FIXED IN-SCHOOL PAYMENTSS elect the in-school payment option during theapplication process and make fixed paymentsof $25 each month during the defermentperiod.

3 Unpaid interest will be added to yourloan.$10, yearsstartingafter thedeferment period$31, MAKE FULL PAYMENTSPay both the principal and interest amounts(required while enrolled in school less thanhalf-time)$10, yearsstartingafter your firstpayment$21, this exampleRepayment examples 1-3 assume that you remain in school for4 years and have a6-month grace period (together, thedeferment period) before the loan term begins. Repayment example 4 assumes full payments begin immediately. All examplesare based onthe highest rate currently charged and associated fees.

4 You always have the option to make payments ahead ofschedule without penalty. By making payments ahead of schedule, you can reduce the total cost of your Starting Interest Rate (upon approval)The starting interest rate you pay will be determined after you apply. It willbe equal to the 3-Month LIBOR Index plus a Margin. The value of the3-Month LIBOR Index varies with the market each quarter. The Margin is afixed value that is set at the time of your Application , based on your credithistory, which repayment option you choose and other factors includingyour cosigner's credit history (if applicable).

5 If approved, we will notify youof the rate you qualify for within the stated Interest Rate during the Life of the LoanYour rate is variable. This means that your rate could move lower orhigher than the rates on this form. The variable rate is based upon the3-Month LIBOR Index (as published in theWall Street Journal). Also, if youelect to make interest-only payments while in school and during the graceperiod, and you stop making the required payments, your interest rate willgo up. For more information on this rate, see the reference the interest rate will vary after you are approved, the interestrate willnever exceed (the maximum allowable for this loan).

6 Discover STUDENT LOANSPO BOX 30947 SALT LAKE CITY, UT 84130-09471-800-STUDENTV201807V-Vers -SV06 Yourstartinginterest rate will be the starting rate is set, your rate will then varywith the of7 Federal Loan AlternativesYou may qualify for Federaleducation additional information, contactyour school's financial aid office orthe Department of Education Out about Other Loan OptionsSome schools have school-specific student loan benefits and terms not detailed on this Form. Contact your school's financial aid office or visit theDepartment of Education's website at: for more information about other These Steps to Apply for This LoanA)Complete the Application and consider adding a cosigner.

7 A cosigner may improve your chances for approval and may lower your )Sign your Promissory Note. Access your account at to sign it electronically, or mail your Promissory Note to uswith your original )Verify your cosigner (if you have a cosigner) has completed and signed the Cosigner Addendum. Your cosigner can access their account to sign it electronically or mail it to us with their original )Complete and sign the Self-Certification Form. Access your account at to sign it electronically, or mail yourSelf-Certification Form to us with your original signature.

8 You may get the Self-Certification Form from your school's financial aid )Obtain school certification. In most cases, we will contact your school and request school certification on your behalf. Your loan amount willbe the lesser of: the amount you request, the amount certified by your school, or the amount we you are approved for this loan, the loan terms will be available for 30 days (terms will not change during this period, except as permitted bylaw and the variable interest rate may change based on the market).

9 Next StepsREFERENCE NOTESV ariable Interest Rate Your loan has a variable interest rate that is based on the 3-MonthLondon Interbank Offered Rate (LIBOR), a publicly available index. Wewill adjust your rate quarterly on each Jan 1, Apr 1, July 1 and Oct 1 (the"interest rate change date"), based on the 3-Month LIBOR Index,published in the Money Rates section of theWall Street Journal 15 daysprior to the interest rate change date, rounded up to the nearestone-eighth of one percent ( or ). Your rate will becalculated each quarter by adding a Margin to the 3-Month LIBOR Index.

10 For more information and the most recent value on the 3-Month LIBORI ndex, visit The rate will not increase more than once a quarter, but there is no limiton the amount that the rate could increase at one time. Rates are typically higher without a cosigner. If you select the interest-only payment option and do not make therequired payments while in school and during the grace period, you willlose the interest rate discount associated with your interest-only Disbursement Your school will receive the funds, credit your school account, andforward any remaining amount to Eligibility Criteria Be enrolled at least half-time in a Bachelor's or Associate's degreeprogram at an eligible school.