Discover Certified Private Loans Disclosure 2010 _08-34_ by MarijanStefanovic


Profile            Discover Financial Services (NYSE: DFS) is a Direct Banking and Payment Services
                   company with one of the most recognized brands in U.S. financial services. Since its
                   inception in 1986, the company has become one of the largest card issuers in the
                   United States. The company operates the Discover card, America's cash rewards
                   pioneer, and offers personal and student loans, online savings accounts, certificates of
                   deposit and money market accounts through its Discover Bank subsidiary. Its payment
                   businesses consist of Discover Network, with millions of merchant and cash access
                   locations; PULSE, one of the nation's leading ATM/debit networks; and Diners Club
                   International, a global payments network with acceptance in more than 185 countries
                   and territories.

Web site 

Headquarters       Riverwoods, Illinois

Employees          Approximately 10,500

Leadership         David W. Nelms, Chairman and Chief Executive Officer
                   Roger C. Hochschild, President and Chief Operating Officer

Direct Banking     The Direct Banking business operates a number of consumer and business credit
                   cards, which are founded on a commitment to help cardmembers earn more meaningful
                   rewards, quickly and easily, while giving them more choices and control over their
                   credit. DFS is one of the largest card issuers in the United States. (

                   Offerings include
                   Discover® MoreSM Card               Discover® Business Card
                   Discover® Motiva        Card        Discover® Business Miles Card
                   Discover® Open Road           Card Discover® Gift Cards
                   Miles by Discover® Card             Escape by Discover® Card

Discover Bank      As part of its Direct Banking sector, DFS has two banking affiliates in the United States:
                   Discover Bank and Bank of New Castle. The company issues U.S. Discover cards
                   through Discover Bank, which is a Delaware corporation. Bank of New Castle activities
                   are primarily limited to credit card operations. Discover Bank offers certificates of
                   deposit, money market deposit accounts, personal and student loans, online savings
                   accounts, and other consumer financial products and services.

Payment Services   Discover’s Payment Services includes Discover Network, a comprehensive payments
                   network that supports multiple card products, issuers and processors
                   (; PULSE, one of the leading ATM/debit networks
                   (; and Diners Club International, with acceptance in 185
                   countries and territories worldwide ( Together, these three
                   networks support billions of financial transactions each year.

Page 1 of 3                                                                                   February 2010 c
Business Locations     Arizona:                   Ohio:                         Utah:
                       Phoenix                    New Albany                    Salt Lake City, West
                       Delaware:                  Tennessee:
                       New Castle, Greenwood      Memphis                       China:
                       Illinois:                  Texas:
                       Riverwoods                 Houston
                       (Corporate Headquarters)

Awards & Recognition

                                                   #1 in Customer Loyalty: Discover Card ranked #1
                                                   in customer loyalty among leading credit card
                                                   brands, according to the 2010 Brand Keys
                                                   Customer Loyalty Engagement Index report.
                                                   Discover Card has won the credit card category 13
                                                   years in a row.

                                                   World Class Customer Satisfaction Award:
                                                   Discover Financial Services received the 2008
                                                   World Class Customer Satisfaction Award for call
                                                   center satisfaction as measured by Service Quality
                                                   Measurement Group, Inc.

                                                    A Leader in Identity Safety: Discover was ranked
                                                    best in identity fraud detection among the top 25 U.S.
                                                    credit card issuers in a June 2009 report by Javelin
                                                    Strategy & Research, a leading financial services
                                                    research and analysis firm. Discover finished second
                                                    overall in Javelin’s yearly assessment of identity
                                                    safety in the credit card industry.

                                                    Great Place to Work: In 2009, IDG’s Computerworld
                                                    rated Discover Financial Services as one of the best
                                                    places for information technology professionals to
                                                    work. Discover has achieved the rating for 6 years in
                                                    a row.

Page 2 of 3                                                                                February 2010 c
                                                 Excellence in Technology: Discover Financial
                                                 Services has been recognized by CIO magazine with
                                                 a 2009 CIO100 Award as one of the top 100
                                                 organizations that exemplify operational and
                                                 strategic excellence in information technology. The
                                                 CIO 100 award is presented annually by the
                                                 magazine to recognize outstanding innovation and
                                                 measurable business impact.

                                                 2008 Best New Product Award: Based on
                                                 innovation and the ability to make peoples’ lives
                                                 easier and simpler, Discover Motiva Card received a
                                                 “2008 Best New Product Award” from Quick &
                                                 Simple magazine.

                                                 Technology Innovation: Discover's technology
                                                 department ranked as one of America's most
                                                 innovative companies on the 2009 InformationWeek
                                                 500 list. For more than 20 years, InformationWeek
                                                 has tracked technology practices by documenting the
                                                 business-technology strategies, investments and
                                                 administrative practices of America's best-known

Media Relations   Phone: 1-224-405-1747

Page 3 of 3                                                                            February 2010 c
                                                Visit                                             Lender ID 831312
                                                Call        1-877-728-3030                                                     Revised 08/24/2009

                    Alternative / Private Loans                Undergraduate                      Graduate

                                                                    Private                        Private 1
                                                                 Prime plus 1.00%               Prime plus 1.00%
                    Interest Rate                              to Prime plus 7.75%            to Prime plus 7.75%

                    Origination Fee                                    Zero                           Zero

                    Default Fee                                   not applicable                 not applicable

                                                              No payments due until          No payments due until

                                                            6 months after graduation      9 months after graduation
                    In School Deferment                      or enrollment in school      or enrollment in school less
                                                               less than half-time               than half-time
                                                                   Please see                      Please see
                    Repayment Term                                our web site                    our web site

                    Prepayment Fee                                     Zero                           Zero

                                                               Cost of attendance              Cost of attendance
                    Annual Loan Limit                           minus other aid                 minus other aid

                    FAFSA?                                        not applicable                 not applicable

                                                           No, but adding a cosigner      No, but adding a cosigner

                                                           may improve your chances       may improve your chances
                    Cosigner?                              for loan approval and may      for loan approval and may
                                                             lower your interest rate       lower your interest rate

                    Credit Check?

                    School Certification?

                    School Disbursement?

                    0.25% Auto Debit Reward 2

                    2% Graduation Reward 3

    The private loan interest rate is equal to the Prime Index plus Margin; the Prime Index adjusts quarterly on each Jan 1, Apr 1, Jul 1 and
    Oct 1, and is the highest "prime rate" listed in the Money Rates section of the Wall Street Journal on the first Friday of the last month
    of the preceding quarter; the Margin is a fixed value between +1.00% and +7.75% that is set based on credit evaluation at the time of
    0.25% interest rate reduction during repayment, when payments are set up for automatic debit from a bank account (available on
    all loans)
    2% cash reward on the outstanding principal balance at graduation (private loans only)

    Please see our web site for complete and up-to-date terms and conditions

THIS PROMISSORY NOTE CONTAINS AN                          D. CONSUMER CREDIT REPORTS:                             by law, including attorney fees, court costs, and the
ARBITRATION PROVISION. UNLESS YOU ACT                     We may request your consumer credit report at any       costs of outside collection agencies. You promise
PROMPTLY TO REJECT THE ARBITRATION                        time before you repay your loan in full. If you         to make each payment on or before the date that it
PROVISION, IT WILL HAVE A SUBSTANTIAL                     request, we will tell you whether or not we             is due. You promise to make the payments at the
IMPACT ON YOUR RIGHTS, INCLUDING YOUR                     requested a consumer credit report and furnish the      place or to mail the payments to the address
RIGHT TO A JURY TRIAL AND YOUR RIGHT TO                   name and address of the consumer credit reporting       specified by us. Your failure to receive either a
PURSUE OR PARTICIPATE IN A CLASS                          agency that was used. We may also report                coupon book or a statement shall not excuse your
ACTION. YOU MAY REJECT THE ARBITRATION                    information about your loan to consumer credit          obligation to make payments according to this
PROVISION    AS   EXPLAINED    IN   THE                   reporting agencies. Late payments, missed               Note. On the date that the last installment of
“ARBITRATION   OF   DISPUTES”   SECTION                   payments or other defaults on your loan may be          principal becomes due under the terms of this
BELOW.                                                    reflected in your consumer credit report. If you        Note, you promise to pay any other accrued and
                                                          believe that information about your loan that we        unpaid amounts. We can accept late payments,
A. PARTIES:                                               have reported to a consumer credit reporting            partial payments, or checks and money orders
The words “Lender”, “we”, “our” and “us” mean             agency is inaccurate, or if you believe that you        marked “payment in full” or with any other
Discover Bank. The words “Borrower”, “you” and            have been the victim of identity theft in connection    restrictive endorsement without losing any of our
“your” refer to the Student and any Cosigner. The         with this or any other loan made by us, write to us     rights under this Note.
"Student" is the student whose education this loan        at Discover Student Loans, PO Box 30947, Salt
is used to finance. The “Cosigner” is another             Lake City, UT 84130-0947. In your letter, 1)            I. INTEREST:
person, other than the Student, who agrees to be          provide your name and the loan or account               You agree to pay interest on the principal amount
bound by all of the terms and conditions of this          number, 2) identify the specific information that is    of the loan from the time the proceeds are
application and promissory note. Upon agreement           being disputed, 3) explain the basis for the dispute,   disbursed until the principal balance is paid in full.
to the terms of this loan, both the Student and any       and 4) provide any supporting documentation that        Interest will be calculated as described in this
Cosigner will be liable, individually and together, for   you have that substantiates the basis of the            section.
the full amount of the loan, plus interest and other      dispute.                                                1) Interest Calculated Daily: Interest will be
charges. The "School" is the college or university                                                                calculated on a daily basis according to the
that is approved by us and that the Student attends       E. PRIVACY:                                             outstanding principal balance each day of the loan
or will attend.                                           Our Privacy Policy includes a summary of the            term. The daily interest rate is equal to the annual
                                                          personal information we collect, when it may be         interest rate in effect on that day, divided by the
B. OTHER DEFINITIONS:                                     shared with others (including when it may be            number of days in that calendar year. Because
“Principal” is the amount disbursed to you or on          shared with our affiliates for marketing purposes),     interest is calculated on a daily basis, you
your behalf.                                              how we safeguard the confidentiality and security       understand that the amount of interest you pay will
“Capitalization” is the adding of accrued and             of information, and the steps you may take to limit     vary based on the number of days between your
unpaid interest to the outstanding principal balance      our sharing of such information with others. Our        previous payment and your current payment.
of this loan. Thereafter, interest will accrue on the     personnel may listen to or record telephone calls       2) Variable Interest Rate: The interest rate for this
new principal balance including the capitalized           between you and our representatives without             loan will change quarterly on each January 1st,
interest.                                                 notice to you as permitted by law. You consent that     April 1st, July 1st, and October 1st (i.e., interest
“Deferred Phase” is the phase of the loan during          we may contact you about your loan by e-mail,           rate change date) if the Prime Index changes. We
which no payment of principal or interest is              using any e-mail address you have provided to us        will notify you of any changes in the interest rate if
required. The Deferred Phase will begin on the            or that you provide to us in the future, by             required by law.
date the loan is first disbursed and will end as          telephone, via text message or using automated          3) Prime Index: The Prime Index is the highest
described in the Disclosure Statement we will send        telephone equipment and prerecorded telephone           rate of interest listed as the “prime rate” in the
to you.                                                   calls to call you, by using any telephone number        Money Rates section of The Wall Street Journal on
“Disclosure Statement” is a Truth-in-Lending              you have provided to us or that you provide to us in    the first Friday of the calendar month preceding the
Disclosure Statement that we will send to you as          the future, even if that number is a cellular           interest rate change date. If The Wall Street
required by federal law.                                  telephone number.                                       Journal is not published or the prime rate is not
“Note” is this application and promissory note.                                                                   listed on the first Friday, then we will use the next
“Program” is the Discover Student Loans                   F. HOW YOU AGREE TO THE TERMS OF THIS                   published value of the prime rate as the Prime
program.                                                  LOAN:                                                   Index. The Prime Index is merely a pricing index
“Repayment Phase” is the phase of the loan                With respect to each disbursement of loan               and does not represent the lowest or best interest
during which repayment is required. The                   proceeds, you agree to all the terms and promises       rate available to a borrower at any bank at any
Repayment Phase will begin on the day after the           in this Note when you consummate the loan by            given time.
Deferred Phase ends and will continue for 180             either: 1) endorsing a check which disburses such       4) Interest Rate Calculation: The interest rate
months if you are an undergraduate student or 240         proceeds; or 2) by, without objection within 60         during the Deferred Phase and the Repayment
months if you are a graduate student, provided that       days, permitting the proceeds to be used by you or      Phase is calculated as the Prime Index plus the
the term may be shortened or extended as                  on your behalf. You are not bound to the terms and      "Margin" percentage identified on your Disclosure
described in the “INTEREST” and “REPAYMENT                promises in this Note until the loan is                 Statement (which is incorporated into this Note),
TERMS AND CAPITALIZATION OF INTEREST”                     consummated.                                            rounded up to the nearest one-one hundredth of
sections below. If you have previously borrowed                                                                   one percent (0.01% or 0.0001). If the Prime Index
under the Program, you consent and agree that the         G. DISBURSEMENT OF LOAN PROCEEDS:                       is no longer available, we will substitute an index
Repayment Phase of your previous loans will be            The loan proceeds will be disbursed as determined       which is comparable, in our sole opinion, and we
the same as the Repayment Phase of this loan.             by us. Disbursements may be made by one or              may adjust the Margin so that the resulting interest
The length of the Repayment Phase is subject to           more checks payable jointly to you and to the           rate is comparable to the rate described in this
limitations on the period of repayment under              School, or by one or more checks payable only to        paragraph. The interest rate will never be higher
applicable law.                                           the School, or by electronically transmitting funds     than 18% per year. The interest rate that will
                                                          directly to the School. You authorize the School to     initially be applicable to this loan will be calculated
C. IDENTITY VERIFICATION:                                 apply the proceeds to your student account at the       the same way as subsequent changes. A change
To help the government fight the funding of               School and to return any portion of proceeds that       in the interest rate may cause the amount of the
terrorism and money-laundering activities, federal        exceeds the amount necessary to pay the actual          final payment to change, may cause the amount of
law requires all financial institutions to obtain,        costs of attendance (less other financial aid)          the monthly payments to increase, or may cause
verify, and record information that identifies each       directly to us as a partial prepayment of this loan.    the number of payments to change.
person who applies for a loan. What, this means to                                                                5) Interest after Maturity and Judgment: Unless
you: when you apply for a loan, we will ask for your      H. YOUR PROMISE TO PAY:                                 prohibited by applicable law, interest at the rate
name, address, date of birth, Social Security             You promise to pay to the order of the Lender the       provided in this Note shall continue to accrue on
number, and other information that will allow us to       Principal amount, interest accrued or capitalized on    the unpaid balance until it is paid in full, even after
identify you. We may also ask to see your driver’s        the Principal amount, late charges, returned            maturity (whether by acceleration or otherwise)
license or other identifying documents.                   payment charges, and all other amounts that may         and/or judgment, if the judgment is entered against
                                                          become due under this Note. You also promise to         you for the amount due. If at any time the rate of
                                                          pay all reasonable costs of collection, as permitted    interest as provided in this paragraph is not
DSL CPL A200902
permitted by applicable law, interest shall, in that    amounts due under this Note are paid. If you have          of this Note. You further waive any right to require
event and at that time, accrue at the highest rate      more than one Note outstanding under the                   due diligence in collection by us.
allowed by applicable law.                              Program,    unless   you     otherwise    specify,         Q. ASSIGNMENT:
                                                        prepayments will be applied to loans in any order          You may not assign or otherwise transfer your
J. REPAYMENT TERMS AND CAPITALIZATION                   we determine.                                              rights under this Note to anyone else. We may sell,
OF INTEREST:                                                                                                       transfer, or assign this Note and your rights and
1) Deferred Phase: Interest will accrue but you are     M. RETURNED PAYMENT CHARGES:                               obligations under this Note will continue
not required to make payments during the Deferred       If a payment or any portion of a payment is                unchanged.
Phase. We will capitalize the accrued and unpaid        returned by your financial institution, including a
interest at the beginning of the Repayment Phase.       debit transaction to a deposit account from which          R. DELAY IN ENFORCEMENT:
2) Repayment Phase: You are required to make            you authorized us to periodically deduct payments,         We can delay enforcing any rights under this Note
payments during the Repayment Phase in                  you agree to pay us a returned payment charge of           without losing any rights. Our failure to enforce any
consecutive, monthly installments until you pay the     ten dollars ($10.00).                                      right under this Note will not act as a waiver of that
principal, interest, and all other charges owed                                                                    right or preclude the exercise of that right in the
under this Note.                                        N. LATE CHARGES:                                           event of a future occurrence of the same event. We
3) Payment Due Dates: Payments will be due              If a payment or any portion of a payment is not paid       can also extend or defer the time allowed for
monthly on the same day of each month as                within fifteen (15) days of its due date, you agree to     making payments at your request, and such
determined by us and as contained in the                pay, as a late charge the greater of five dollars          extension will not affect your obligations, whether
Disclosure Statement which you will receive prior to    ($5.00) or five percent (5%) of the entire payment         or not you are given notice of the extension.
the start of the Repayment Phase. The first             that was not paid in full. However, no late charges
payment in the Repayment Phase will be due              will be due if the reason for the late payment is          S. NOTICES AND ADDRESSES:
approximately thirty (30) days, but not more than       either: 1) attributable to a late charge assessed on       1) You agree to send a written notice to us within
sixty (60) days, after the start of the Repayment       a prior payment; or 2) because, after default by           ten (10) days after any change in your name,
Phase.                                                  you, the entire outstanding balance on this Note is        address, or School enrollment status.
4) Calculation of Initial Payment Amount: At the        due. No more than one (1) late charge will be              2) Any notice or communication with us required or
start of the Repayment Phase, we will calculate the     imposed for any single scheduled payment.                  permitted under the Federal Bankruptcy Code must
payment amount necessary to amortize the                                                                           be in writing, must include your loan number and
outstanding loan balance, including capitalized         O. DEFAULT – WHOLE LOAN DUE:                               must be sent to Discover Student Loans, PO Box
interest, at the current interest rate in equal         If you are in default, the entire outstanding balance      30947, Salt Lake City, UT 84130-0947.
installments over the number of months in the           on this Note will be due immediately at our option.        3) Prior to initiating, joining or participating in any
Repayment Phase. This scheduled monthly                 This will happen without any prior notice to you or        judicial or arbitration proceeding, whether
payment will not be less than fifty dollars ($50.00).   right to cure, except where required by law. A             individually, as a class representative or participant
5) Changes in Payment Amount: The amount of             default on this Note is a default on every other           or otherwise, regarding any Claim, the party
the scheduled monthly payment will not decrease,        note, loan, or agreement of yours with us. Further,        asserting the Claim (the “Claimant”) shall give the
but it may increase once per year in order to           if you are in default and we file suit or take other       other party written notice of the Claim (a “Claim
amortize the new outstanding loan balance at the        action to collect this loan, you agree to pay the          Notice”) and a reasonable opportunity, not less
then current interest rate in equal monthly             costs of suit and the costs of collection (including       than 30 days, to resolve the Claim. Any Claim
installments by the end of the Repayment Phase.         the costs of outside collection agencies) and, if          Notice you send must include your name, address,
We will inform you in advance of any change in          permitted by law, reasonable attorneys’ fees. You          telephone number and account number. Any Claim
scheduled monthly payment.                              will be in default for any of the following reasons:       Notice must explain the nature of the Claim and the
6) Application of Payments: Payments will be            1) if you do not make any payment before or on the         relief that is demanded. You may only submit a
applied first to late charges and returned payment      date it is due;                                            Claim Notice on your own behalf and not on behalf
charges, then to accrued interest, and then to          2) if you default on any promise made in this Note         of any other party. The Claimant must reasonably
principal. Under some circumstances, the payment        or any other note, loan, or agreement with us;             cooperate in providing any information about the
amount may not cover the interest that accrues and      3) if you have made any untrue statement or                Claim that the other party reasonably requests.
the unpaid interest will be added to the principal      misrepresentation in this application or any other         This provision includes any claims involving our
balance of the loan.                                    certificate or document given or made for this loan;       parent      corporation,      subsidiaries,    affiliates
7) Amounts Owing at the End of the Repayment            4) upon the death of the Student;                          (including, without limitation, Discover Financial
Phase: Since interest accrues daily upon the            5) upon the death of any Cosigner, if the Student is       Services and DFS Services LLC), predecessors,
outstanding principal balance of the loan, if the       unable to provide another Cosigner acceptable to           successors, assigns, as well as the officers,
interest rate changes or if you make payments after     us;                                                        directors, and employees of each of these entities
the payment due dates, you may owe principal,           6) if in good faith we believe that the prospect of        (our “Related Parties”). You will send any Claim
interest, and/or other charges at the end of the        you paying this Note is impaired;                          Notice to us at Discover Student Loans, PO Box
Repayment Phase. In this case, we will increase         7) if you fail to provide, at our request, adequate        30947, Salt Lake City, UT 84130-0947 or such
the amount of the last monthly payment by the           verification of enrollment status;                         other address that we subsequently provide to
amount necessary to repay the loan in full.             8) if you fail to use the proceeds of the loan solely      you (the “Claim Notice Address”). We will send
However, the amount of the final payment will not       for your educational expenses;                             any Claim Notice to you at your address appearing
be more than twice the amount of the previous           9) if you become insolvent and/or cannot pay your          in our records or, if you are represented by
payment. If necessary, we will increase the number      debts as they become due;                                  counsel, to your attorney at your attorney’s office.
of payments.                                            10) if any other creditor tries by legal process to        4) Any other notice, which you send to us, will be
8) Combination: At our option, all outstanding          take any of your money or property in our                  sent to the address that we have most recently
loans that are made under the Program and that          possession;                                                provided to you for that purpose. If we have not
are in the Repayment Phase may be combined for          11) if you file a bankruptcy petition or if anyone files   provided any other address, you will send notices
the purposes of repayment.                              an involuntary bankruptcy petition against you;            to us at the address as set forth on the Disclosure
                                                        12) if you make an assignment for the benefit of           Statement or the billing statements.
K. BILLING STATEMENTS:                                  creditors, or if any insolvency, reorganization,           5) Except as otherwise provided by applicable law,
If we choose to send periodic billing statements or     arrangement, debt adjustment, receivership,                any notice that we are required to give to you will
other periodic statements of the loan, you agree        trusteeship, liquidation, or other legal or equitable      be effective when mailed by first class U.S. Mail to
that the information contained on the statement will    proceedings are instituted by or against you; or           your latest address in our records.
be considered as accepted by you and true unless        13) if any judgment, tax lien, municipal charge or
you notify us to the contrary within sixty (60) days    tax levy is filed or a writ of execution is issued         T. ARBITRATION OF DISPUTES:
after receipt.                                          against you.                                               1) Agreement to Arbitrate: In the event of any
                                                                                                                   past, present or future claim or dispute (whether
L. PREPAYMENT:                                          P. GENERAL WAIVER PROVISIONS:                              based upon contract, tort, statute, common law or
You may prepay, in full or in part, the amount owed     You waive presentment for payment, demand,                 equity) between you and us arising from or relating
on this Note at any time without penalty. If you        protest, notice of protest, dishonor, and all other        to your loan, any prior loan you have had with us,
prepay the loan in part, you agree to continue to       notices or demands in connection with the delivery,        your application, the relationships which result from
make regularly scheduled payments until all             acceptance, performance, default, or enforcement           your loan, or the enforceability or scope of this
DSL CPL A200902
arbitration provision, of the Agreement or of any        proceeding       where     such     a    payment      or   becomes unenforceable, it will not make any other
prior agreement, you or we may elect to resolve the      reimbursement is prohibited by applicable law.             part unenforceable, except that if the Class Action
claim or dispute by binding arbitration. IF EITHER       4) Arbitration Hearings and Decisions: Any                 Waiver set forth above in the “ARBITRATION OF
YOU OR WE ELECT ARBITRATION, NEITHER                     arbitration hearing will take place in the federal         DISPUTES” section is invalidated in any
YOU NOR WE SHALL HAVE THE RIGHT TO                       judicial district where you reside. The arbitrator         proceeding in which you and we are involved, then
LITIGATE THAT CLAIM IN COURT OR TO HAVE                  shall follow applicable substantive law to the extent      the “ARBITRATION OF DISPUTES” section will be
A JURY TRIAL ON THAT CLAIM. PRE¬HEARING                  consistent with the FAA and applicable statutes of         void with respect to that proceeding.
DISCOVERY RIGHTS AND POST-HEARING                        limitations and shall honor claims of privilege
APPEAL RIGHTS WILL BE LIMITED. NEITHER                   recognized at law and shall be authorized to award         U. GOVERNING LAW:
YOU NOR WE SHALL BE ENTITLED TO JOIN OR                  all remedies permitted by the substantive laws that        This Note and any claim or dispute arising out of
CONSOLIDATE CLAIMS IN ARBITRATION BY                     would apply if the action were pending in court. If        this Note will be governed by applicable federal law
OR AGAINST OTHER CUSTOMERS WITH                          requested by any party, the arbitrator shall write an      and, to the extent state law applies, Delaware law,
RESPECT TO OTHER ACCOUNTS, OR                            opinion containing the reasons for the award. The          without regard to its conflict of law rules.
LITIGATE IN COURT OR ARBITRATE ANY                       arbitrator’s decision will be final and binding except
CLAIMS AS A REPRESENTATIVE OR MEMBER                     for any appeal rights under the FAA and except             V. RESIDENTS OF CALIFORNIA, OHIO, OR
OF A CLASS OR IN A PRIVATE ATTORNEY                      that if the amount in controversy exceeds                  WISCONSIN:
GENERAL CAPACITY (“Class Action Waiver”).                $100,000.00, any party may appeal the award                1) California Residents: A married applicant may
Notwithstanding anything else to the contrary in         within 30 days to a three-arbitrator panel, which          apply for a separate account.
this arbitration provision, only a court, and not an     shall review the award de novo. Unless applicable          2) Ohio Residents: The Ohio laws against
arbitrator, shall determine the validity and effect of   law provides otherwise, the appealing party will pay       discrimination require that all creditors make credit
the Class Action Waiver. Even if all parties have        the cost of the appeal, regardless of its outcome.         equally available to all credit-worthy customers and
opted to litigate a claim in court, you or we may        However, we will consider in good faith any                that credit reporting agencies maintain separate
elect arbitration with respect to any claim made by      reasonable request for us to bear the fees charged         credit histories on each individual upon request.
a new party or any new claims later asserted in that     by the arbitration administrator and the arbitrators       The Ohio Civil Rights Commission administers
lawsuit, and nothing undertaken therein shall            in connection with the appeal. Judgment upon any           compliance with this law.
constitute a waiver of any rights under this             award by the arbitrator may be enforced in any             3) Wisconsin Residents: If you are a married
arbitration provision. We will not invoke our right to   court having jurisdiction.                                 Wisconsin resident, your signature confirms that
arbitrate an individual claim you bring in small         5) Other Beneficiaries of This Arbitration                 this loan obligation is being incurred in the interest
claims court or your state’s equivalent court, if any,   Provision: Our rights and obligations under this           of your marriage or family. No provision of any
unless such action is transferred, removed or            arbitration provision shall inure to the benefit of and    marital property agreement (i.e., premarital
appealed to a different court.                           be binding upon our parent corporations,                   agreement), unilateral statement under Section
2) Governing Law and Rules for Arbitration:              subsidiaries, affiliates (including, without limitation,   766.59 of the Wisconsin Statutes, or court decree
Your loan involves interstate commerce and this          Discover Financial Services and DFS Services               under Section 766.70 of the Wisconsin Statutes
provision shall be governed by the Federal               LLC), predecessors, successors, assigns, as well           adversely affects the interest of the Lender unless
Arbitration Act (“FAA”). The arbitration shall be        as the officers, directors, and employees of each of       the Lender, prior to the time that the loan is
conducted, at the option of whoever files the            these entities, and will also inure to the benefit of      approved, is furnished with a copy of the marital
arbitration claim, by either the American Arbitration    any third party named as a co-defendant with us or         property agreement, a statement, a decree, or has
Association (“AAA”) or the National Arbitration          with any of the foregoing in a claim which is subject      actual knowledge of the adverse provision. If the
Forum (“NAF”) in accordance with their procedures        to this arbitration provision. Your rights and             loan for which you are applying is granted, you will
in effect when the claim is filed. For a copy of their   obligations under this arbitration provision shall         notify us if you have a spouse who needs to
procedures, to file a claim or for other information,    inure to the benefit of and be binding upon all            receive notification that credit has been extended
contact AAA at 335 Madison Avenue, Floor 10,             persons contractually liable under this Agreement.         to you.
New York, NY 10017-5905, (phone 1-           6) Survival of This Arbitration Provision: This
800-778-7879) or NAF at PO Box 50191,                    arbitration provision shall survive termination of         W. EFFECT OF PARTIAL INVALIDITY:
Minneapolis, MN 55405 (phone 1-800-474-2371).            your loan as well as voluntary payment in full by          If any of the provisions of this Note are rendered
No other arbitration forum will be permitted, except     you, any legal proceedings by us to collect a debt         invalid by any change in applicable law or
as agreed to pursuant to a writing signed by both        owed by you, any bankruptcy by you, and any sale           regulations, or are declared invalid by order,
parties. Unless consented to by all parties, no          by us of your loan.                                        decree, or judgment of a court or government
arbitration may be administered by any                   7) Right to Reject Arbitration: You may reject the         agency of competent jurisdiction, the remaining
administrator that has any formal or informal policy,    “ARBITRATION OF DISPUTES” section by                       provisions of this Note will not be affected, and this
rule or procedure that is inconsistent with or           providing us a notice of rejection within 30 days          Note will be construed as if such invalid provisions
purports to override the terms of this section. If we    after consummation of your loan at the following           had not been inserted into this Note.
elect to resolve a claim or dispute by binding           address: Discover Student Loans, PO Box
arbitration and the arbitrator issues an award in        30947, Salt Lake City, UT 84130-0947. If you
your favor on a claim or claims with respect to          were previously subject to arbitration with respect
which you would not otherwise be entitled to             to any loan with us, this right to reject arbitration
recover your arbitration filing, administrative and      will not apply to you. Your rejection notice must
hearing fees, reasonable attorneys’ fees and/or          include your name, address, telephone number,
other arbitration costs, we will be responsible for      loan number and signature and must not be sent
paying or reimbursing such costs and fees if             with any other correspondence. Calling us to
awarded by the arbitrator.                               indicate that you reject the “ARBITRATION OF
3) Fees and Costs for Arbitration: At your written       DISPUTES” section or sending a rejection notice in
request, we will advance any arbitration filing,         a manner or format that does not comply with all
administrative and hearing fees which you would          applicable requirements is insufficient notice. In
be required to pay to pursue a claim or dispute as a     order to process your notice, we require that the
result of our electing to arbitrate that claim or        notice be provided by you directly and not through
dispute. Send requests to Discover Student               a third party. Rejection of arbitration will not affect
Loans, PO Box 30947, Salt Lake City, UT 84130-           your other rights or responsibilities under this Note
0947. The arbitrator will decide who will ultimately     or your obligation to arbitrate disputes under any
be responsible for paying those fees. You will only      other loan as to which you and we have agreed to
be responsible for paying or reimbursing our             arbitrate disputes. If you do not send a rejection
arbitration filing, administrative or hearing fees to    notice, you will be obligated by the “ARBITRATION
the extent you would have been responsible for           OF DISPUTES” section with respect to this and
paying “attorneys' fees and court or other collection    any prior loan you have had with us, even if you
costs” had the action proceeded in court. In no          have previously sent a rejection notice with respect
event will you be required to pay any fees or costs      to that prior loan.
incurred by us in connection with an arbitration         8) Legal Interpretation of This Agreement
                                                         Severability: If any part of this arbitration provision
DSL CPL A200902
                 Private Education Loan                                                     Complete and mail form to:
                                                                                            Discover Student Loans
                                                                                                                                                      OMB No. 1845-0101
                                                                                                                                                      Form Approved
                                                                                                                                                      Exp. Date 02-28-2013
                 Applicant Self-Certification                                               PO Box 30947
                                                                                            Salt Lake City, UT 84130-0947
Important: Pursuant to Section 155 of the Higher Education Act of 1965, as amended, (HEA) and to satisfy the requirements of Section 128(e)(3) of the Truth in
Lending Act, a lender must obtain a self-certification signed by the applicant before disbursing a private education loan. The school is required on request to provide
this form or the required information only for students admitted or enrolled at the school. Throughout this Applicant Self-Certification, “you” and “your” refer to the
applicant who is applying for the loan. The applicant and the student may be the same person.

Instructions: Before signing, carefully read the entire form, including the definitions and other information on the following page. Submit the signed form
to your lender.
     Free or lower-cost Title IV federal, state, or school student financial aid may be available in place of, or in addition to, a private
      education loan. To apply for Title IV federal grants, loans and work-study, submit a Free Application for Federal Student Aid
      (FAFSA) available at, or by calling 1-800-4-FED-AID, or from the school’s financial aid office.
     A private education loan may reduce eligibility for free or lower-cost federal, state, or school student financial aid.
     You are strongly encouraged to pursue the availability of free or lower-cost financial aid with the school’s financial aid office.
     The financial information required to complete this form can be obtained from the school’s financial aid office. If the lender has
      provided this information, you should contact your school’s financial aid office to verify this information and to discuss your
      financing options.
If information is not already entered below, obtain the needed information from the school’s financial aid office and enter it on the appropriate line. Sign
and date where indicated.

       A. Student’s cost of attendance for the period of enrollment covered by the loan                  $____________________
       B. Estimated financial assistance for the period of enrollment covered by the loan                $____________________
       C. Difference between amounts A and B                                                             $____________________
           WARNING: If you borrow more than the amount on line C, you risk reducing your eligibility for
          free or lower-cost federal, state, or school financial aid.
Enter or correct the information below.

Full Name and Address of School ________________________________________________________________________________________________________

Applicant Name (last, first, MI) ___________________________________________________                  Date of Birth (mm/dd/yyyy) _____/_____/__________

Permanent Street Address __________________________________________________________________

City, State, Zip Code __________________________________________________________________ ____________________

Area Code / Telephone Number Home (             ) ____________________________              Other (      ) ____________________________
E-mail Address________________________________________________________________________________________
Period of Enrollment Covered by the Loan (mm/dd/yyyy)         From _____ / _____ / _______ to _____ / _____ / _______

If the student is not the applicant, provide the student’s name and date of birth.

Student Name (last, first, MI) ____________________________________________________                   Student Date of Birth (mm/dd/yyyy) _____/_____/__________


I certify that I have read and understood the notices in Section 1 and, that to the best of my knowledge, the information provided on this form is true and correct.

Signature of Applicant ____________________________________________________________________ Date (mm/dd/yyyy) _______________________


Cost of attendance is an estimate of tuition and fees, room and board, transportation, and other costs for the period of enrollment covered by the loan, as
determined by the school. A student’s cost of attendance may be obtained from the school’s financial aid office.

Estimated financial assistance is all federal, state, institutional (school), private, and other sources of assistance used in determining eligibility for most Title IV
student financial aid, including amounts of financial assistance used to replace the expected family contribution. The student’s estimated financial assistance is
determined by the school and may be obtained from the school’s financial aid office.

A lender is a private education lender as defined in Section 140 of the Truth in Lending Act and any other person engaged in the business of securing, making, or
extending private education loans on behalf of the lender.

A period of enrollment is the academic year, academic term (such as semester, trimester, or quarter), or the number of weeks of instructional time for which the
applicant is requesting the loan.

A private education loan is a loan provided by a private education lender that is not a Title IV loan and that is issued expressly for postsecondary education
expenses, regardless of whether the loan is provided through the school that the student attends or directly to the borrower from the private education lender. A
private education loan does not include (1) An extension of credit under an open-end consumer credit plan, a reverse mortgage transaction, a residential mortgage
transaction, or any other loan that is secured by real property or a dwelling; or (2) An extension of credit in which the school is the lender if the term of the extension
of credit is 90 days or less or an interest rate will not be applied to the credit balance and the term of the extension of credit is one year or less, even if the credit is
payable in more than four installments.

Title IV student financial aid includes the Federal Pell Grant Program, the Academic Competitiveness Grant (ACG) Program, the Federal Supplemental Educational
Opportunity Grant (FSEOG) Program, the Leveraging Educational Assistance Partnership (LEAP) Program, the Federal Family Education Loan Program (FFELP),
the Federal Work-Study (FWS) Program, the William D. Ford Federal Direct Loan (Direct Loan) Program, the Federal Perkins Loan Program, the National Science
and Mathematics Access to Retain Talent Grant (National SMART Grant) Program, and the Teacher Education Assistance for College and Higher Education
(TEACH) Grant Program. To apply for Title IV federal grants, loans, and work-study, submit a Free Application for Federal Student Aid (FAFSA), which is available at, by calling 1-800-4-FED-AID, or from the school’s financial aid office.


Paperwork Reduction Notice: According to the Paperwork Reduction Act of 1995, no persons are required to respond to a collection of information
unless it displays a currently valid OMB control number. The valid OMB control number for this information collection is 1845-0101. The time required to
complete this information collection is estimated to average 0.25 hours (15 minutes) per response, including the time to review instructions, search
existing data resources, gather and maintain the data needed and complete and review the information collection.

If you have any comments concerning the accuracy of the time estimate(s) or suggestions for improving this form, please write to: U.S.
Department of Education, Washington, DC 20202-4651.

If you have any comments or concerns regarding the status of your individual submission of this form, contact your lender.


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