Credit Cards Center Credit cards from our partners
Reply
New Member
Posts: 2
Registered: ‎12-15-2016
0

Re: Student Loan Disability Discharge

My sitatution is this been disabled for a while now ..... Finally awarded SSDI Mar 15 and filed for discharge in Arp. 15 was granted approval on 12/09/16 all my student loans on TU, say they have a zero balance & state TRANSFERED/SOLD in CR, and EQ CR still shows some with a balance. My question is where do I go from this point. All my loan dates are 2010 and back .

Member
Posts: 12
Registered: ‎03-03-2015
0

Re: Student Loan Disability Discharge

Whoever can read this, and is having difficulty with understanding the process, please feel free to contact me off of this forum at Michelle@enchantedmusicspa.com (the email is connected to an online business that I've not actually worked with yet, that combines my wellness coaching with my husband's music for relaxation) just in case you were wondering about the odd name.

 

With my TPD, I'm coming up on year three in August 2017. I was told by NelNet just yesterday when I called them to inquire about the exact date the my monitoring will end. that there will be NO MORE reporting after the initial reporting as that IS the final reporting. So, you will want to get any discrepencies cleared up right in the beginning. 

 

If you have excellent credit (800's was where mine was before it tanked, I made phone calls and then it was restored) then you will more easily be able to tell if there is something off with the coding/reporting. It's a bit more difficult for folks who already have less than stellar credit. The reason why I was able to successfully resolve my credit issue was because my credit was tight (only 5 credit card accounts) and it was fairly obvious.

 

Again, if anyone has any questions I'd be happy to help any way that I can. I can also give detailed step by step instructions or speak with any of you by phone if that is helpful for you all.

 

Be well and don't hesitate to contact me. I'd hate to see any of you further stressed when you've already got health issues Smiley Happy 

 

My Best,

 

Michelle

New Contributor
Posts: 116
Registered: ‎03-25-2008
0

Re: Student Loan Disability Discharge

One problem with either a partial or full discharge of a student (or any other) loan is your income tax.  If, say, $50,000 in loans are discharged, you just picked up an extra $50,000 in income for the year it happened.  Lenders will send you an IRS form Form 1099-C, "Cancellation Of Debt", which shows the total amount of debt cancelled. That amount is added to your gross income for that year, almost always resulting in taxes owed, often quite a lot of taxes.  And the form also goes to the IRS, so if you ignore it and don't report it when you file they can charge you with tax fraud.  Unless you have enough money to pay the extra tax, you should immediately cotact the IRS and explain the situation.  They do have programs to help taxpayers who can't pay right away, such as payment plans and such.  If you do not make arrangements right away, you'll face added interest, penalties, collections, seizure of assets (including your home, any money in the bank, etc.) and, in some cases, even criminal charges.  If you end up with extra "income" because of debt cancellation, DO NOT ignore it.  It will catch up to you and will cost you more in the end, badly hurt your credit, and sometimes even screw up your life.

Highlighted
New Contributor
Posts: 116
Registered: ‎03-25-2008
0

Re: Student Loan Disability Discharge

Right now,I haven't had any student loan payments even due.  But I withdrew from the Spring 2016 semester, having health problems, planning on startrng again in September.  GIven the Spring and Summer, the grace period gets used up, and I have a September due date for my first payments.  Now, returning in September doesn't seem too likely.  Turns out I have Stage IV lung cancer, which becomes automatically service connected because of exposure to Agent Orange, and now I'm a Totally and Permanently disabled vet, as per the VA.  Which all by itself is all it takes for a total TPD discharge.  So if I file now, all the student loans ought to just drop off the reports, before there are any late payments or anything.  Am I right?

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.