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Student Loan Disability Discharge

New Member

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 .

Message 121 of 125
Member

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

Message 122 of 125
Contributor

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.

Message 123 of 125
Contributor

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?

Message 124 of 125
New Visitor

Re: Student Loan Disability Discharge

Which two forms are you talking about? Any videos or material you suggest on how to fill this out?
Message 125 of 125