Consumer complaint received 2016-10-07
Company: DISCOVER BANK
State: GA
Product: Student loan
Sub-product: Non-federal student loan
Issue: Dealing with my lender or servicer
Sub-issue: Trouble with how payments are handled

Complaint:
I will be graduating from XXXX University XXXX XXXX XXXX on XXXX XXXX, XXXX. As grades will be posted XXXX XXXX, XXXX the XXXX XXXX date is what is reported to the XXXX and my student loan companies. Discover Student Loans services a large portion of my private loans and is advising me I will receive a bill sometime after XXXX XXXX that is due XXXX XXXX. Considering Discover 's billing cycle is 23 days I have inquired why that is and they are stating if they can get a bill generated within 14 days they find this period to be reasonable. As such if my reported graduation date was the date of the actual ceremony ( a mere 6 days ) I would not have a bill due until XXXX XXXX, XXXX. This seems like a direct admission that discover is using a 3 day window to unfairly demand payment. I find it unreasonable to send someone a bill and expect payment within two weeks which for most Americans is XXXX pay period. Excusing the fact that this will also be due 3 days after XXXX, the only solution Discover is offering is that they have no late fees and I will have until XXXX XXXX, XXXX before my payment is considered late. This is not a viable solution as once my loans are in repayment I will have to use XXXX checks that I receive in one month to meet the payment due. If I pay the loan the way Discover is suggesting I will continue being near the " late date '' every month. Furthermore, for a lender that does not consider or factor your income ( {$42000.00} ) and simply requires payment based on their calculations Discover should not suggest to ANYONE how to pay their student loans based on when they are receiving paycheck considering Discover does not offer income based repayment. 

I have tried on several attempts to circumvent defaulting on my loans with Discover and have been successful thus far, however Discover advising me two weeks before a payment is due is not only inappropriate it is an unacceptable practice that should not be allowed. I am not requesting a month of forbearance or anything of the such I am requesting an appropriate billing cycle like everyone else is allowed so that I can budget between Ramen noodles, rent, and not defaulting on loans that offer little if any repayment options. 

Please also consider that I receive my current student loan statement on the XXXX of each month. As such I would receive a statement on XXXX XXXX, XXXX showing my loans are in deferment and no payment is due, to then receive a statement a week after the XXXX telling me I have 10 days to pay my loan? This is the very definition of unreasonable. 

I am looking simply to have my student loan payment due XXXX XXXX, XXXX instead of XXXX XXXX, XXXX less than two weeks after I even receive my diploma. This means my next loan statement on XXXX XXXX, XXXX would allow ample time to budget and pay the sizable amount due. 

I am not sure that this practice is illegal or discriminatory, however I am absolutely certain that is it unfair to expect graduates to make payments 17 days after their degrees are conferred which is less than the company 's billing cycle. I wonder how many other students Discover may have put in a similar situation-who then felt they had no choice but to default? 

I appreciate any assistance in this matter and look forward to your reply. 

XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation