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?
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.
Did some digging and found this positive answer from:
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.
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.
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....
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.
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.
Luck to all of you on your own related quests.
"You miss 100% of the shots you don't take." -Wayne Gretzky
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.....
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.