topic Re: Student Loan Disability Discharge in Student Loans

Student Loan Disability Discharge

Anonymous — Thu, 12 Sep 2013 19:04:27 GMT

I have a question.

I am eligible to apply for Student Loan Disability Discharge, and my question is that if I get approved, and all of my student loans are forgiven, will that have a positive or negative affect on my credit score?

Also, what if there is a school balance that's gone into collection, but that is also forgiven if approved, will that remain on my credit history?

Thank You!

Re: Student Loan Disability Discharge

Anonymous — Sat, 21 Dec 2013 16:43:13 GMT

Same question. (bump)

Submitted Total and Permanent Disability (TPD) paperwork to Nelnet 11/30/13

Received letter of acknowledgement dated 12/09/2013 from Nelnet that

they received and are currently reviewing my paperwork before passing

it to the Dept. of Ed.

Thanks in advance.

Re: Student Loan Disability Discharge

Anonymous — Tue, 04 Mar 2014 23:18:17 GMT

Hey coolturtle,

Did some digging and found this positive answer from:

http://budgeting.thenest.com/student-loan-discharge-affect-credit-23158.html

Approved Discharges

Even if the lender grants a full cancellation, some negative information can still slip into your credit report. If the loan was previously in default, any late payment history and default status will usually be removed. You may also be eligible for a full or partial refund of your loan payments. Credit bureaus can sometimes make mistakes, so request copies of your report from all three agencies as part of your follow-up. If the lender does not report the loan as discharged, you have the right to file a dispute to correct the information.

Re: Student Loan Disability Discharge

Anonymous — Thu, 02 Jan 2014 06:25:48 GMT

Approved for the New Year!!!

Same to all those who read this post and hope my last post helps you get one step closer to your answers.

Good Luck.

Re: Student Loan Disability Discharge

Anonymous — Wed, 19 Mar 2014 06:17:31 GMT

Hey guys.

Just passing along some information after some inquiries regarding my credit report after my student loan forgiveness.

According to a Nelnet customer service rep:

-Loans do take up to two months to be received by Nelnet from the loan distributors to be

marked as "paid in full" on your credit reports.

-Nelnet reports to the credit bureaus on the 3rd Sunday of every month.

-Any change in loan status would take at least 30 days after the Nelnet report to reflect on your credit report.

-There will be a positive change in your credit score but that can take at least 30 days to take

effect on your credit report. (that's for you coolturtle)

-Regarding negative remarks on your credit report [derogatory, late payments, defaults, etc]......

Nelnet claims those remarks would remain, similar to a credit card debt BUT according to

various credible sources and others' personal attestments, once student loans are

forgiven/discharged, those negative remarks are supposed to be removed as well.

I guess I'll have to play the waiting game to see what happens after my forgiven loans are reported.

I'll post the relevant outcomes after they happen to give you guys a clear sense as to what to expect during the process.

Until then.....stay hopeful and stay tuned, I know I will....

Re: Student Loan Disability Discharge

Anonymous — Fri, 03 Jan 2014 17:23:49 GMT

Thank you so much for all the information. It's very helpful. I'll be keeping up with your posts.

Re: Student Loan Disability Discharge

Anonymous — Tue, 04 Mar 2014 23:25:49 GMT

Hey guys,

Just a minor update from my past posts.

I've been keeping up with the loan forgiveness and the CR negative remarks wipe situation

mentioned in my last posts.

Just spoke to another Nelnet CSR to get any updates on my forgiven loans

According to the CSR:

-My loans were received by Nelnet on 01/15/2014

-Unfortunately, Nelnet customer service reps don't have the capability to see whether or not my

forgiven loans have been reported by the monthly deadline and if they were reported at all for that

matter. (The same answers were concurrent with all past inquiries with Nelnet CSR's)

With that in mind, along with all previous information concerning my quest to get a complete wipe

of all my past defaulted student loans after the TPD discharge from my CR, I realize that Nelnet

has provided as much info as they can for now. All that remains to be done for the time being is wait

a full month (plus a week for unforeseen delays) from Nelnet's report deadline to the credit bureaus and

and see if any positive changes took place. Hopefully, that would the desired case.

I pulled up my CR yesterday from one of those free CR sites (CreditKarma, Creditsesame, Quizzle) and as

expected...no change. Was checking to see if any miracles took place similar to the speed and approval of

the TPD decision from December. Until the timeframe comes to re-check my CR, I'm biding my time and

researching info on credit rebuilding and seemingly, the MyFico ScoreWatch system is something I'm

looking at to use in the future on my path to a positive credit-related future.

Be on the lookout for an update for results and consequent actions on my part.

Luck to all of you on your own related quests.

Re: Student Loan Disability Discharge

Anonymous — Wed, 12 Feb 2014 14:30:07 GMT

Hey guys,

**Major Update**

I was doing some research today regarding "Operation: Clean Slate" and I came across a multitude of forums regarding the use of 'goodwill letters'.

Unbeknownst to me, student loan GW letters can be used to appeal to lenders and collection agencies alike for the removal of derogatory statements from CR "out of the kindness of their hearts". According to testimonies from former and active GW letter users, this method is based on pure luck, meaning if whomever reads the letter is having a good or bad day, optimistic/pessimistic, just found a $20 on the sidewalk, just spilled coffee on themselves, etc. These minor factors can have a major effect as to whether if you'll get the remarks removed or have the letter fed to the shredder. If denied, the loan holder must send a letter or e-mail back stating why the request was denied....But that doesn't mean you can't try again. You might find that with persistence, eventually someone with the power to make the gears turn in your favor will do so and your unwillingness to quit trying will grant you your personal victory over the system but I digress. On to my update....

With knowledge in mind, I decided to take the GW letter up a notch and actually make a GW phone call. A safe trial and error would be to call good ol' Nelnet with the request in mind. This started a chain of events that would lead me to surprisingly positive conclusion. I'll go step-by-step and leave the fluff out for crystal clarity of the unfolded events.....

_ _ _ _ _ _ _

-Called Nelnet, asked for GW removal of statements. No dice (as expected) but the CSR did put in some footwork and said that the Dept.of ED. would be the ones to make my request to. The CSR even went as far as to give me the direct number to the DoE....

-Called the DoE's main office in Washington, D.C. and made the request but the CSR there said that the DoE doesn't actually disperse student loans, only second and third-party lenders associated with DoE. No private lenders. I was asked if I knew who my lenders were but according to my CR, all my loans came from the DoE! I mentioned this and was told to pay close attention to the lender details,(phone numbers, addresses, types of loans borrowed) and cross-reference what info I had to find my mystery lender(s). No further info from the main office.

-Checked my recently pulled CR from the the credit bureaus and after some assessment, I did find my lenders; ACS and Federal Direct Loans (aka simply Direct Loan program). I Googled both for their numbers.

-Proceeded to call Direct Loans first and again made my request....wait for it....No record of my loan or late payments in their system! Only that it has been transferred to Nelnet. I asked for advice concerning my request since Nelnet as my loan holder had no access to change the remarks. I was put on hold, then the supervisor picked up and concurred with the CSR's statement and strongly advised me to dispute all of my DL loans to all three CBs because since I had no record with DL, disputing the loans with the CBs would cause them to call DL to confirm that I had no account with them whatsoever and that would be the case so since DL doesn't have a record of me, the CBs would have no other option but to pull the tradeline of those accounts off of my CR completely as if they never were......awesome! On to the next one....

-Called ACS (based in Greenville,TX) and all I got was a message that they, and numerous other loan lender companies, were in the process of merging with another loan lender called "ECSI Federal Perkins Loan Program" and was given their phone number.

-Called ECSI and again made my request....lightning strikes twice! The same scenario happened as the DL situation almost in the exact manner but didn't include a supervisor as I reached the customer service department on my own. When I asked for advice as they also didn't have me in their system, without hesitation I was told to do the exact same process of disputing with all three CBs.

-I requested the names of all parties involved and case/confirmation numbers in the remote chance that this goes south on me. So after 2-3 hours from research to phone calls, I went to Equifax, Experian, and TransUnion, and disputed all loans involved. The process is pretty simple except where they ask why was I disputing....I simply put, "no longer liable for the account" and/or "not my account" on each and every one. Keeping it short and concise to avoid confusion or delayed results. All three CBs have up to 30 days to respond or the disputed accounts in question are deleted by default.

_ _ _ _ _ _ _

So in conclusion, I'm happy with the preceding results and I hope this expansive testimony helps those who can use it in any way possible.

March 14 is on my calendar, phone reminder, and a sticky note on my fridge for good measure.

Until then,

Luck to all of you on your own related quests.

"You miss 100% of the shots you don't take." -Wayne Gretzky

Re: Student Loan Disability Discharge

Anonymous — Wed, 12 Feb 2014 14:23:10 GMT

Woke up this morning to an email from TransUnion....

ALL disputed accounts have been removed, and I just submitted the dispute last night. The process is working!

One CB down, two to go.....

Re: Student Loan Disability Discharge

Anonymous — Tue, 04 Mar 2014 23:27:50 GMT

Hey guys,

Received an email from Equifax.....

Again, ALL disputed accounts have been removed.

Also, I checked my credit scores using CreditKarma.com to see if the reflected any of the recent changes in my CR....and they have:

TransUnion from 551 to 640

VantageScore (ver 3.0) from 528 to 660

(ver 2.0) from 591 to 732

FICO Score (estimate) from 530 to 662

I've yet to furnish a FICO credit score report so in the meantime, I'll wait about two weeks after the pending results from my Experian dispute to do so to get a more accurate reflection of all scores relevant. Even so, I'm nothing but satisfied that my diligence and hard work has paid off and I will continue this upward trend of building up my credit scores.

I'll continue to update this discussion with new information as I'm updated.

Re: Student Loan Disability Discharge

Anonymous — Fri, 21 Feb 2014 04:29:32 GMT

I have been keeping up with your posts. Thank you, you have been very helpful! =D

Re: Student Loan Disability Discharge

Anonymous — Sat, 22 Feb 2014 00:45:25 GMT

No problem coolturtle and thanks to you as well.

Over a period of about six months, I've been scouring the internet for answers to the questions that I first posted. Considering our situations are a minority in the credit universe, I figured I'd start the trend by posting the events of my situation and sharing it with anyone that's been in my shoes. I didn't know what to expect when I started posting and dealing with the previous issues but fortunately, it's been a positive experience.

It's good to hear that you're progressing as well.

Re: Student Loan Disability Discharge

Anonymous — Wed, 19 Mar 2014 06:32:50 GMT

Hey guys,

Well it's finally done. Experian took their sweet time but nonetheless, it's over. Got those pesky derogatory remarks and those deadweight tradelines off of all my credit reports. It's been a journey but I'm glad it has come to an end in that chapter. All that's left are the positive "Paid as agreed" Nelnet loans and the one thorn in my CR's side... a Midland Funding "paid collection" that was originally derived from T-Mobile in 1/2010. I'll leave that matter to another forum. So for all those that have followed my blogs, I hope it has pointed you in some direction to credit-stability and possibly give you ideas on new ways of solving any related matters to mine. If you have any info to share, no matter how seemingly insignificant, please do share. All I had was a single sliver of light in the darkness to help me get to where I am now. Taking the road less traveled in my minor situation within the world of those looking for credit resolution has opened a door that hasn't been available to me before (I do give great amounts of credit to the similarly created blogs and the insight they've given me).

At this point, I've acquired all my updated CRs with the most updated information plus my credit scores. I've gone to my local bank (Capital One) on 3/13 and with faith in mind and the numbers in the "system", I applied for my first credit card.....ever. I have a good rapport with my bank representative and proceeded with the process. She already had my information since I was a long time patron there and we discussed the options of what CC would suit me best while remaining within my credit/financial boundaries. The "QuicksilverOne" card was the first to be pre-qualified for me along with two others, "Platinum" and "Classic Platinum". I opted for the "Platinum" because of the low annual fee but sacrificing the lower APR of the "Classic Platinum". Plus, I just wanted an in to the credit system, not attempting to go straight to the V.I.P. section while barely getting by the two-drink minimum, so I kept my sights at mid-range. So she entered me into the bank system and asked those words that made the hairs on my neck stand up: "Do you give me permission to apply for the CC chosen?". I casually responded yes and waited for what seemed like the longest 30 seconds I've ever experienced in my life, all the while contemplating the possible credit-related plans that I would set in motion depending on the approval or denial of my application. As I was caught up with my thoughts in an ADHD moment, I caught her smile in my peripheral vision and she informed me that I was approved with a CL of $2500! I felt like I won the lottery for a few moments but realized the postion I was in at that moment. I thanked her like she gave me the golden ticket to the positive credit factory. From that day and the weekend that followed, I felt absolution from my seemingly financial hell that I've created for myself all those years, even though I was indirectly responsible for those occurances.

I now held the power to start the process of building my credit to optimum levels using methods I've researched at the same time I started posting to this blog. I'm now starting a new journey and being careful not to haphazardly fall into those financial pitfalls and sticking to the plan: Spend low, pay the balance in full a week before the due date, and keeping my will strong to not make impulse purchases. Six months later after resposible payments, ask for an increase. Also, the one thing to not do is acquire too many CCs over a short amount of time and the one thing to do is to call that number to opt-out of being contacted my mail or e-mail for the so-called "Pre-qualified" offers for other CCs. They should replace that deceiving phrase, "Pre-qualified" to "Your credit scores meet our standards but your CR might deny you our original offer solely on a single red flag....but please do try again a.s.a.p - we appreciate your business"

Well that's all folks. It's been a pleasure and Good Luck to all those who are fighting the good fight. Don't give up and make your own fate. Signing off for now.

Sincerely,

Steven

Re: Student Loan Disability Discharge

hope9798 — Wed, 19 Mar 2014 12:52:26 GMT

Thank you so much sandman for the great information. I am in the similar situation with Nelnet you were in. Discharged approved on 2/11/2014 and wiating for removel.

I have come a long way with the great informations in this forum from people like you. Good luck and thanks again

al.

Re: Student Loan Disability Discharge

Anonymous — Mon, 12 May 2014 19:00:03 GMT

Awesome! aw awesome! Unfortunately, those of us who had our TPD due to military disabilty, get the shaft. We don't have the three year monitoring period so our loans never get turned over to NELNET. So citizens bank, my original lender, is still able to report all my 30-60-90s. Aes removed theirs and just changed the status to closed, settlement accepted, which I am fine with.

Aes is the servicer of the loan. Now I just wish I could get citizens bank to remove the claim filed with government and the lates. They are all scheduled to fall off in may of 2015, but that doesn't help my mortgage search now. :-(

Re: Student Loan Disability Discharge

Anonymous — Wed, 30 Jul 2014 12:06:01 GMT

Hi Sandman , I'm so happy for you! I have a few questions.... We're your loans discharged due to VA (military )? I read all of your post and the hoops that you had to jump through but was the step that worked for you contacting the CB? Did you email, submit a form, call? Okay, let's just put it this way, with all that you have gone through, how would you do it if you had to do it again?

Thanks

Re: Student Loan Disability Discharge

Anonymous — Sun, 31 Aug 2014 09:14:33 GMT

I wish you had known that too. It's good for other veterans to know, so they can ask their doctor to fill out the TPD paperwork instead of sending in the 100% rating if they have negative entries in their CRs.

Re: Student Loan Disability Discharge

Anonymous — Wed, 24 Sep 2014 11:49:57 GMT

Hey mzalex,

Thanks for the posting.

To answer your questions, I'm not in the military or VA. I'm a civilian with a total and permanent disability. Regarding contacting the Credit Bureaus, I directly reached them through their websites (used Google to find their respective websites). I found that disputing directly online to be a fairly easy process and user-friendly.

Hope that info helps you some. Good luck.

Re: Student Loan Disability Discharge

2b2rich — Tue, 04 Nov 2014 09:53:58 GMT

I'm not sure having a TPD due to military disability means it has to continue to be reported to the bureaus after discharge. That sounds more like a lender's call. I applied for TPD the beginning of August based on my 100% P&T VA award and NELNET is currently handling it. On the other hand, my loans are with the Dept of Ed and not a private lender.

This is from the Dept of ED website:

What happens if my loan discharge is approved?

If you qualify for a complete discharge of your loan, you are no longer obligated to make loan payments. Depending on the type of loan discharge program for which you may be eligible, the U.S. Department of Education may be required to refund to you some or all of the payments you made on the loan. In addition, any adverse credit record related to a default might be deleted, and no tax refund offset or wage garnishment will take place to collect on the discharged loan. If the loan was in default, the discharge may erase the default status. If you have no other defaulted loans, you regain eligibility for federal student aid.

https://studentaid.ed.gov/repay-loans/forgiveness-cancellation

I'm still waiting on my to complete, but as soon as it's all done, I will update here on whether or not the statement above is accurate. (and thank you Steve for all of your valuable efforts and information)

Re: Student Loan Disability Discharge

Anonymous — Mon, 01 Dec 2014 23:45:33 GMT

interesting thread, i will definitely keep this in mind!