Chase Cancelled Student Loan Debt?

[Anonymous]

I had owned two Chase student loans from 2008. I defaulted on these loans in 2016. After the fact, I continued to make monthly payments to Chase. However, this evening, I received a letter in the mail from Chase. They returned both of my checks for $100.00/ea and stated the following: 

"We are returning the payment because we've closed the account(s) and canceled the debt(s). As a result, no amount is due. Please do not make any further payments."

Can someone please help me here? I feel like this is to good to be true. I can't find anything on the internet identifying why this has occurred - or if it's even real.

Please help!

[thornback]

---

@Anonymous wrote:

"We are returning the payment because we've closed the account(s) and canceled the debt(s). As a result, no amount is due. Please do not make any further payments."

---

Huh.  The use of the term 'canceled' is interesting;  I'd think if the debt was sold (which seems more likely) that they would've stated so. 

Found this article from May 2019: https://thecollegeinvestor.com/22394/chase-student-loans/

"Although Chase stopped issuing private student loans in 2013, it kept them on it’s books until 2017. In April 2017, Chase sold its remaining $6.9 billion dollar student loan portfolio to Navient.  Any student loan that Chase owned is now owned by Navient."

I would suggest first checking with Navient to see if they purchased your loans.  And, if that gets you nowhere, then search the NSLDS (National Student Loan Data System) database to see if any info exists for you/your loans there.

If neither of those provide any info, then perhaps your loans were canceled -- or you'll hear from another servicer down the road.  You can (should) also contact Chase and find out what, exactly, "canceled" means... 

[Anonymous]

Okay, so a little more background: My loans were sold to AES (American Education Services) around 2010ish (could be sooner/later). However, when I went into default, the loans reverted back to Chase - and their recovery department. 

[thornback]

Oh... so maybe they've decided to just take the loss & cancel them - given the age and all.  In that case, I'd say take it as a win... so, congrats? 

[Anonymous]

That just seems to good to be true. But.. I hope it's true!

---

@thornback wrote:

Oh... so maybe they've decided to just take the loss & cancel them - given the age and all.  In that case, I'd say take it as a win... so, congrats? 

---

[calyx]

I would still urge you to check the NSLDS database;  if these were federal student loans, you could still owe - if your NSLDS says you owe 0, then I'd breathe.    

Good luck!

[addision]

I would bet that the debt was not cancelled. What has likely happen is that they "wrote off" the debt which is just an accounting function to recognize the uncollectable balance. I would verify that the student loan database shows them as paid off or at a $0 balance. For a lender students ( parents etc.) are on the hook forever and these debts won't even be discharged in BK. I read that only 0.04% of people will succeed.

While they may not come after you for it, it could still show up when you go to finance a purchase  like a home.

[Anonymous]

+1 About @calyx 's suggestion to check the NSLDS.

In think the most accurate answer is the simplest. This seems to be a private loan? Call Chase.
Ask what the letter means. There's probably contact information on it.

I dread having to make those calls. But they will usually give you more detailed information than you can sometimes get in print or online.

[calyx]

My concern is that these are FFEL loans, because these loans were taken out pre-2010 when the program ended. 
My FFEL loans were through WellsFargo, so ones through Chase may not be private.

If the loans have been reassigned to another agency/guarantor for collections ("cancelled" by Chase, but not truly forgiven), then it should be in the NSLDS file.

[Anonymous]

UPDATE:

I spoke with Chase (at the number provided in the letter) on Monday. They stated it was a business decision by Chase to seperate themselves from student loans. The loans are forgiven as of the 13th of January and I will receive a 1099-C  Cancellation of Debt for the calendar year 2020. 

The loans do not appear in NSLDS. They have not appeared here ever, and have not shown up since. 

This feels like a minor miracle.