17 Aug It Pays to Get Good Grades With Discover
Students heading off to college in the next few weeks have plenty of motivation to get good grades. There is the sense of accomplishment you feel when mastering new information. Good grades increase the opportunity for a better job in your future. And it keeps mom and dad off your back about working harder!
As if those weren’t enough reasons, students who have taken out a private student loan from Discover® Student Loans have even more reason to study harder now. They can actually receive a cash reward for getting good grades! It sounds too good to be true, but it is. Students who earn at least a 3.0 GPA (or equivalent) will be able to qualify for a one-time cash reward on each new Discover student loan. Here’s how the Rewards for Good Grades program works:
• Apply for a Discover Student Loan: To be eligible for cash rewards you must submit an application for a Discover Undergraduate, Health Professions, Law, MBA or Graduate Loan on or after May 1, 2014. You must have been approved for, and received, the loan. You will be eligible for only one reward for each new Discover Student Loan.
• Study Hard: You must earn at least a 3.0 GPA or its equivalent. Visit the Discover Student Loans website to find the exact Grade/GPA requirement for Rewards for Good Grades at your school. Discover may request additional documentation to verify your GPA.
• Request Your Reward: You will need to complete and sign a Redemption Request Form within six months after the academic term covered by the loan has ended. If your loan covers several academic terms, you will have to wait until the end of the final academic term covered by the loan to submit the Redemption Form.
• Receive Your Reward: Within six to eight weeks after your request is submitted you will receive a 1% cash reward of the disbursed principal balance on your loan.
It is your responsibility to notify Discover if you do not receive your expected cash reward. You can call 1-800-STUDENT at any time, 24/7, if you have any questions about Discover’s Rewards for Good Grades program.
A Lifetime of Benefits
Although some people are able to achieve success with lower grades, or even after dropping out of college, most find that there is a direct correlation between grades and their income. For example, WallStreetOasis.com conducted a study of 3,401 employees of both large and small investment banking firms. They found that a first-year associate who had a GPA between 2.9 and 3.1 made an average total compensation of $79,700. If the GPA was between 3.2 and 3.4 the compensation was $99,700, and with a GPA between 3.5 and 3.7 compensation would increase to $137,400.
If you need more information about the college financial aid process, or would like to learn more about federal and private student loans, contact College Financial Aid Advisors (CFAA) or visit my About.com website, Paying for College.