Student Loan Disability Discharge

[Anonymous]

Ok so after going over the Experian and Transunion reports from their websites, which I saw from the dispute center, the ones showing as negative are the ones that were marked as transfered.

But the ones marked Dep of Ed/TPD Nelnet are marked as Paid/Never Late, so I'm now confused as to what might be right or wrong.

Any help would be greatly appreciated.

Am I freaking out too much, and am I right that it usually takes a month for the credit score to change, since they were reported at the end of January by Nelnet as Paid/Never Late.

[alathea]

I think something to keep in mind with this is that it takes 3-4 months for the whole process, so continually checking your reports over and over, day to day, week to week is just going to cause more stress added to what is obviously already a stressful situaiton. I just was approved today by the DOE for my loan discharge. Will it negatively affect my credit? Doubtful, it already sucks. Its been demonstrated in this thread, I think, that even FICO can't get their own story straight with how it deals with this since we had another poster post scored differences that went up and not down. Yet, we have others that are experiencing the opposite. 

Be aware, be watchful, but do give the whole thing time to work and don't stress out over it too much. We already have issues to stress out about being disabled. 

[Anonymous]

deleted

[Anonymous]

Ok, this is a terrifying story. A man in Houston was arrested by 7 marshalls for his $1,500 student loan from 1987..

http://www.fox26houston.com/news/local-news/92232732-story

They said there was some new action that triggered these and there are more to come. I guess I'm not going to take any chances and try to work something out with them. 

I'm even more angry that Wall Street got my 401k and the banks all got off with nothing. I'm feeling the Bern. 

[Anonymous]

UPDATE: After seeing the story I posted above about the man in Houston arrested for his $1500 student loan from 1987 by 7 US Marshalls, I panicked and called Consumer Protection agency regarding the complaint I filed against the collection agency. The collection agency had replied to my complaint stating they would not seek further action. That sounds good, but will US Marshalls show up at my door? Will I suddenly have this on my credit? Is my credit life ruined after just beginning again?

The woman at Consumer Protection thought this is the end of it, but encouraged me to read more on their site about "very old" student loans. I think my story and the one about the Houston man surprised her. It wasn't something she heard every day. 

In my searches, I also found an update to these laws put into effect in November 2015 where it seems I may have fallen through the cracks again for being too poor and too white when I was young (no offense meant, believe me! There were limited programs for everyone in 1981-83, and most were defined by race and income) - I think what I had might be called a PLUS loan nowadays and it seems those will not be included which is bizarre to me since extra loans are what the very poor need and qualify for:

http://www.forgetstudentloandebt.com/student-loan-relief-programs/federal-student-loan-relief/federa...

I hope this helps someone! My options to go poking around will likely result in stirring up a storm of old crap I thought was long forgotten. Again I'm reminded how the banks have had nothing but a slap on the wrist. 

[Anonymous]

No, there was a new law in November 2015

http://www.forgetstudentloandebt.com/student-loan-relief-programs/federal-student-loan-relief/federa...

and if you look above to my previous 2 posts, you will see a terrifying story about a man in Houston who was arrested by 7 US Marshalls for his 1987 student loan for $1500. 

[Anonymous]

Thank you so much for your input! 

Yes, mine seems like it is private when it's convenient then Federal if that is convenient. When my loans were discharged in the 90's, this was said not to be because it was private. Now it is back because it's supposedly Federal. I am not sure if the collection agency is  a scam, but I think maybe it's not a scam because of the new law put into effect:

http://www.forgetstudentloandebt.com/student-loan-relief-programs/federal-student-loan-relief/federa...

I filed a complaint with consumerfinance.gov because I thought it had to be a fradulent collection attempt prior to hearing about the above law. Below is the response they sent:

++++++++

Reliant Capital Solutions, LLC said:
Explanation of closure: 
Reliant Capital Solutions is not affiliated with LVNV Funding, nor have we attempted to collect this debt under any other name. Based on the data provided in X's complaint, we recommend he/she contact the loan servicer, ECSI directly regarding applying for a Total and Permanent Disability Discharge of this Federal loan. Additional information may also be found online here: https://www/disabilitydischarge.com/home/.
We have ceased all further collection attempts on this account and have updated our system accordingly.

Relief: 
Reliant Capital Solutions is not affiliated with LVNV Funding, nor have we attempted to collect this debt under any other name. Based on the data provided in X's complaint, we recommend he/she contact the loan servicer, ECSI directly regarding applying for a Total and Permanent Disability Discharge of this Federal loan. Additional information may also be found online here: https://www/disabilitydischarge.com/home/. We have ceased all further collection attempts on this account and have updated our system accordingly.

+++++++++

I'm leaving the names of these collection agencies so others may identify them.

I am still not sure what this means and terrified someone will come to my door to arrest me or it will show up ruining my credit. The loan amount was for $1200 and now is almost $4000 with interest! The worst part is if I start a payment plan with this loan, is it going to undo all of my discharged loans? The woman at Consumer Finance advised me to keep looking on their site for the answers. I really don't have the time to devote to this either. Why is our gov trying to smack down people who are trying their best to get back to tax paying status - which I have finally acheived (lots of hassles there, too for self-employed people). 

[Anonymous]

Hello Maidendance

I recently had over $103K worth of student loans discharged due to my service connected disabilities. While I'm extremely ecstatic, I have had nothing but headaches with the credit bureaus since the discharge. My scores are dropping and I'm not sure what to do. Can you please share any advice on the tips you used to raise your scores?

Thanks in advance and God speed to everyone on their credit repair journey! 

P

[6speed8]

Filed for Disability Discharge in 2012. Completed the 3 year monitoring in 2015. At that point they were considered discharged. During the monitoring period, they showed 'Open/Pays as agreed". Eight loans in total but show up as 24 accounts. Original loans were transferred twice. Once from the original lender. Then to I don't remember. Then to Nelnet when I went into the discharge program. Basically each loan shows twice as "Transferred/Closed" and once as "Closed" after discharge. It's kind of a double edge sword. GOOD that ($18,600 in my case) your debt just dropped by whatever your discharge amount. BAD in a sense that your installment accounts just went away. The whole credit reporting system is bizzare to me. It's "good" that your debt went down but "bad" that you don't have an installment loan history (so to speak) anymore.

[Anonymous]

I don't know what happened but I'll share. Maybe this can help someone. My loans never went into default so that may have worked in my favor. I did however use every single bit of foreberarance that I had. Then  or 6 years ago I was in position to pay to rehab my loans. They took a low pyment of $15 a month so I paid that faithfully. Of course when I got down to the last $500 I was no longer considered in rehab status so it wne to Great Lakes. These folks were not willng to work with me. By this time I was laid off. The interest rate started climbing and soon I owed 1k. So close and yet so far. I then got sick and eventually went out on disability. I went to my doctor, eplained the situation and she helped me complete the loan forgiveness. The loand was now back up to 1.5K. I was approved and it's scheduled to fall off my credit report next month.