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Loan Discharge due to disability

Contributor

Loan Discharge due to disability

I was awarded Total and Permanent disability by Veterans Affairs on 4/1/2016. I applied for a student loan discharge on 7/12/2016 through NelNet. I checked the website yesterday, and it says status: Permanent Diacharge. Does anyone know if this loan will be completely deleted from my credit report or will it say closed. I don't want the previous late payments to keep my score low. Will I have to pay any taxes on the discharged amount? Total discharged is about $24,000.
TU: 650 EQ: 625. EX: 629
| FLAGSHIP $12.5K [ NFCU cashRewards $10k [ PIER 1 $500 [ NORDSTROM $2000 [ MATTRESS FIRM $1,200
3 years Post Ch.7






7 REPLIES
Valued Contributor

Re: Loan Discharge due to disability


SW30 wrote:
I was awarded Total and Permanent disability by Veterans Affairs on 4/1/2016. I applied for a student loan discharge on 7/12/2016 through NelNet. I checked the website yesterday, and it says status: Permanent Diacharge. Does anyone know if this loan will be completely deleted from my credit report or will it say closed. I don't want the previous late payments to keep my score low. Will I have to pay any taxes on the discharged amount? Total discharged is about $24,000.

My research brought up this

 

http://blog.credit.com/2015/05/will-student-loan-forgiveness-hurt-my-credit-116443/





TU fico08=810 08/29/18
EX fico08=796 09/05/18
EQ fico08=811 09/05/18
EX fico09=797 08/01/18
EQ fico bankcard08=827 08/28/18
Garden since 07/02/18
Message 2 of 8
Contributor

Re: Loan Discharge due to disability

Thanks. I read it. Now I need to see how mine are reporting.
TU: 650 EQ: 625. EX: 629
| FLAGSHIP $12.5K [ NFCU cashRewards $10k [ PIER 1 $500 [ NORDSTROM $2000 [ MATTRESS FIRM $1,200
3 years Post Ch.7






Message 3 of 8
Valued Contributor

Re: Loan Discharge due to disability


SW30 wrote:
Thanks. I read it. Now I need to see how mine are reporting.

Glad I could help...please update this when you get all your info together so it may help others in the same situation. Do not know what branch of the service you were in, or if you are disabled due to injury sustained while in service, but in any case thank you for your service, that I might remain free! I salute you sir!!!!





TU fico08=810 08/29/18
EX fico08=796 09/05/18
EQ fico08=811 09/05/18
EX fico09=797 08/01/18
EQ fico bankcard08=827 08/28/18
Garden since 07/02/18
Message 4 of 8
Contributor

Re: Loan Discharge due to disability

UPDATE: 9/22/2016- Equifax has completely deleted all 4 student loans. Credit score increased 31 points. Experian CLOSED all 4 loans as paid. Credit score DECREASED 8 points.
TU: 650 EQ: 625. EX: 629
| FLAGSHIP $12.5K [ NFCU cashRewards $10k [ PIER 1 $500 [ NORDSTROM $2000 [ MATTRESS FIRM $1,200
3 years Post Ch.7






Message 5 of 8
Regular Contributor

Re: Loan Discharge due to disability


SW30 wrote:
I was awarded Total and Permanent disability by Veterans Affairs on 4/1/2016. I applied for a student loan discharge on 7/12/2016 through NelNet. I checked the website yesterday, and it says status: Permanent Diacharge. Does anyone know if this loan will be completely deleted from my credit report or will it say closed. I don't want the previous late payments to keep my score low. Will I have to pay any taxes on the discharged amount? Total discharged is about $24,000.

SW30~

 

My DH has been on appeal to increase his rating from 70% to 100% and/or IU for about 2 yrs now.  Last update on the VA benefits website was a yr ago when he submitted the last NOD.  Do you mind telling me how long you fought to get yours?  He has about $11K in student loans that are in forbearance, but I believe accumulating interest because he can't work to repay them now.  

Summer 2018 FICO 8 scores~
Gardening until 2019....at least
Message 6 of 8
Contributor

Re: Loan Discharge due to disability

4 months
TU: 650 EQ: 625. EX: 629
| FLAGSHIP $12.5K [ NFCU cashRewards $10k [ PIER 1 $500 [ NORDSTROM $2000 [ MATTRESS FIRM $1,200
3 years Post Ch.7






Message 7 of 8
Regular Contributor

Re: Loan Discharge due to disability

Did you have a representative helping you get your case expedited?  Or are you an OIF/OEF vet?  You can PM me if you don't want it posted.  Thanks!

Summer 2018 FICO 8 scores~
Gardening until 2019....at least
Message 8 of 8