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NELNET and TPD student loan discharge

New Member

NELNET and TPD student loan discharge

There have been quite a few questions in relation to what happens:  on your credit report after the loans have been approved for discharge but you are still in the three year monitoring period.  I am confused myself about this and the sequence of events.  Could anyone that has been successful with the TPD and NELNET explain the process one more time.  I have been approved for the TPD due to permanent disability and want to know-- how long does the process take for the credit bureaus to get the updated information?  Also, if the loans have shown as closed and in collection status-- will that information stay on the credit file under the comments section-- or will the status change to "PAID AS AGREED."  Thank you for your feedback.  Heather

Message 1 of 6
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Established Contributor

Re: NELNET and TPD student loan discharge

Hi Heather:

 

Welcome to the forums.  Unfortunately I do not have much experience with the TPD process.  I was trying to do some reading up on it through the below link which you may find helpful.

 

https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/disability-discharge#approval

 

Have you already been approved for a TPD discharge?  Was the date of your TPD prior to them sending your student loans to collections?  If you were current prior to the date of your TPD, then I think you may have a good chance of having the bad history reversed and removed from your credit reports.  This of course is only my opinion at the time based on what it sounds like is done during this process.  For example, part of the process requires the loan servicing provider to return any payments that you've made since the TPD date, so I think that we could losely interpret that in your favor if your account was current prior to TPD.

 

Otherwise, I think what would likely happen is any negative history after the TPD date can be removed.  The history prior to the TPD date will probably remain.  Please let us know what else you find out, as I'm interested to better understand this process as well so that we can help others in the future.


Starting Score: Eq: 662 Tu: 532 (03/02/2011) CH7BK 01/12/2009 Discharge
Current Score: Eq: 712 (02/03/2017) Tu: 717 (04/03/2013)
Goal Score: Eq: 760 Tu: 760

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Message 2 of 6
New Member

Re: NELNET and TPD student loan discharge

Thank you. I will keep you posted on this process.
Best,
Heather
Message 3 of 6
New Contributor

Re: NELNET and TPD student loan discharge

How long did it take for your status to get approved? I'm in that process now and it has been close to 3 weeks.

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Message 4 of 6
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New Member

Re: NELNET and TPD student loan discharge

About 30 days.
Message 5 of 6
New Contributor

Re: NELNET and TPD student loan discharge

I'm so anxious since my mortgage approval depends on this being approved Smiley Sad

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