When you were in elementary school, junior high, or otherwise, did your parents or someone else ever offer to reward you for good grades? Maybe it was as simple as buying the toy you wanted, increasing your allowance, or buying your first car.
Many kids were rewarded for their success in school, and Discover is offering a similar incentive. The company allows students to qualify for a one-time cash reward of one percent of the loan amount on a Discover student loan for getting good grades.
How to Qualify for the Discover Good Grades Reward
You can qualify for a one-time cash reward on each new Discover student loan if you get at least a 3.0 Grade Point Average (GPA) or equivalent in a community college or a graduate school. Eligible students may receive one cash reward in each of the following groupings:
- Undergraduate Freshman Student
- Undergraduate and Graduate Students
Group 1: Undergraduate Freshman Student
You may be eligible to receive a 1% cash reward on the school-certified amount if you are a US citizen or permanent resident and your cumulative high school GPA is at least 3.0 or equivalent.
You also need to have applied for a Discover undergraduate loan for your Freshman year during the regularly updated period specified on the Discover website. Once approved, you need to have accepted the student loan, and the first disbursement needs to have been sent to your school.
If you previously refunded a Discover student loan, you will not be eligible for the high school reward. If you apply for multiple Discover student loans and are approved, you will be eligible to receive a cash reward on only the first loan you accept.
Cash Reward Redemption
To redeem the reward for your cumulative high school GPA you must log in to Discover.com and submit the redemption form after accepting your first undergraduate loan as a freshman. This must be done within six months of the first disbursement of the loan. A check will be mailed 120 days after your first loan disbursement. If your loan is canceled, refunded, or withdrawn during this timeframe, you will not be eligible for the reward.
If also eligible for Group 2, you may be able to redeem an additional one percent cash reward.
Group 2: Undergraduate and Graduate Students
You will be eligible to receive a 1% cash reward on the disbursed loan balance if you submitted an application for a Discover Undergraduate, Health Professions, Law, MBA, or Graduate loan on or after May 1st of 2014 and received the funds. Your GPA for any academic term covered by the loan will also need to be at least 3.0, or equivalent.
If the loan covers multiple academic terms, you may only redeem your reward after the end of the final academic term covered by the loan. Also, there can’t be any pending disbursements on your eligible Discover student loan.
Cash Reward Redemption
To redeem the reward for the academic term GPA you must submit your grade point average using the redemption form within six months after the academic term covered by the loan has ended or six months after the final disbursement of the loan, whichever is later.
If an academic term accounts for multiple semesters, you can provide your GPA for any semester during the academic term covered by the loan or the combined grade point average for the academic term.
Also, you must redeem your reward in full in a single redemption transaction. A check will be mailed to the address Discover has on file within two to three weeks following the completion and submission of the redemption form.
There may also be additional conditions for each eligibility group, and the criteria may change. Be sure to visit Discover’s website for a fully updated list of requirements.
How Much Cash Reward Will You Receive
A one percent cash reward might not seem like the most money in the world. However, it’s nice to have that extra incentive to do well in school or be rewarded for something you’re already doing. Here is a breakdown of what a 1% cash back reward equals for common student loan amounts.
- $100,000 x 1% = $1,000 cash reward
- $50,000 x 1% = $500 cash reward
- $25,000 x 1% = $250 cash reward
- $15,000 x 1% = $150 cash reward
- $10,000 x 1% = $100 cash reward
- $5,000 x 1% = $50 cash reward
Additional Discover Student Loan Benefits
In addition to the 1% cash reward for good grades, there are many other reasons to choose a Discover student loan:
- Can be used to cover 100% of any school-certified undergraduate and graduate education costs, including tuition, housing, books, and other expenses.
- Discover student loans have zero application, origination, and late fees.
- Multiple repayment options, including deferring student loan payments until after graduation.
- There are both fixed and variable APR loan types available.
- Competitive interest rates.
- 25% interest rate reduction with the interest-only repayment option or automatic payment enrollment.
- All Discover’s student loan specialists are US-based and are available anytime, day or night, to help you.
How to Apply for a Discover Student Loan
If you don’t already have a student loan with Discover, you can apply for one online. You may also contact Discover by phone at 1-800-student (788-3368) to discuss borrowing options, the application process, or get help with rewards for good grades. Applying with a creditworthy cosigner can improve the likelihood of loan approval and may lower the interest rate.
Get Rewarded for Refinancing
If you are looking to refinance your current student loans, you might be able to lower your interest rates and receive a bonus of up to $300 by refinancing with SoFi. The minimum loan amount needed to refinance your student loans with SoFi is $5,000.
Final Thoughts on the 1% Cash Reward for Good Grades Offer From Discover
When going to college, it is generally recommended that you take advantage of as many federal student loan programs as possible before utilizing private student loans such as those offered by Discover. However, there are plenty of circumstances where private funding is necessary.
Finding a trusted lender like Discover that offers numerous lending options and provides incentives to do well in school can be the perfect way to start a school year on the right foot.
Discover cash rewards may be treated as taxable income and be reported to the government on IRS Form 1099-MISC. When tax time comes, it is best to consult a professional to discuss what needs to be reported as income on your taxes. And remember to deduct the interest paid on your loans!
