Student Loan Disability Discharge

[Anonymous]

Capz,

Yes, you want to make sure that there is nothing that states "student loan permanently assigned to the government" OR the "code" of "AL" on your report.  

Unfortunately there's no easy way to deal with this except to wait and see what they put on your report and then call each individual original lender (the bank/s who had your loan BEFORE NelNet paid them off).

I will tell you that most people will not even see it or understand what you are referring to.  Also, the credit bureaus are not much help because they also didn't see the "flagged/derogatory account" that was shown here on the my FICO purchase.  IF someone just looked at my credit reports there was NOTHING negative or derogatory, it was all an algorithm thing with my FICO.  You will want to purchase all 3 scores after this all goes through and see if you too get any red flagged accounts.

NelNet is of NO HELP in this challenge.  They did their part correctly and then that's it.  Unfortunately NelNet just kept telling me I had to "straighten this out with the original lender".  But it took A LOT of persistence on my part AND a letter from My FICO to me stating that the lender needed to change the "verbiage".  

Also, like I mentioned I had to get outside assistance from the NCHER folks to call my original lender and get their "compliance" team on board.  If they didn't fix it I was going to go to the NH Banking Division and had already began the process of a formal complaint.  I was relieved and glad that they did the right thing and corrected the problem.  But it took many many hours and many many phone calls and a lot of stress to get it fixed.  But to me it was all worth it. When I know I"m right about something I will NOT budge until the right thing is done.  I am very grateful for the few people that actually cared and listened to my problem.  I think hearing a score go down over 120 points helped.

I just checked my score from that credit card that tipped me off the first time and it's now at 838, when at the height of all of this score fiasco it was 717.  And like I said literally overnight the score jumped after the coding and verbiage was changed.

I wish there was an easier way but for whatever reasons NO ONE even knew this was going on until me and my BIG MOUTH started making some noise about it lol...but seriously, I still have to figure out a way to get this fixed for others.  I've been very busy with other things so it's on my list of "to do's", just one thing at a time.

Keep in touch! 

[Anonymous]

Capz,

I think I may have forgotten to click the "notify me" about a response from you Capz, but I"m already "subscribed" so I should still get notification. But just in case, if I don't respond within a few days just shout out another message!

[Anonymous]

Thank you for your help with this. I'm sorry you were put through the ringer, but your persistence paid off. Now you able to help others navigate this. I'm trying to be proactive, as many of my loans were sold and resold, so In order to contact the original lender, I might be looking at an uphill battle. If you do not mind could you inbox me the contact number and or addresses to the people you wrote to at fico and NCHER? I SO appreciate your efforts to help other people. Thank you.

[Anonymous]

when your loans are 'paid in full' & you get your charge off letter telling you so...work begins I am totally & permanently disabled. Nelnet paid off $69,000+ for my student loans, I do not have to pay the taxes (1099 forms) on said paid loans due to disability/insolvency.
I have to notify the big 3 credit unions & send copies of charge off letter to each. Boom! My terrible credit is now poor & fair
and headed for good! I've had all closed accounts (student loans & others) over 7 &10 years old removed.

The CR companies had wrong names, addresses, and phones for me that were never mine at all....reports are getting cleaned up.
I bought a puppy and instead of paying cash, making 'payments' thru my savings account monthly (not checking, tnis gtd the loan)
paying more for pooch but building my credit up!

However, one of my student loans was an 'Alternative' loan....think ARM loan, unbeknownst to me at signing... and per loan folks
not to be dischargec for T & P disability nor, by bancruptcy. WOW, $9858.00 That now I can Not even make payments if I wanted to.
On the Credit Reports, it now shows 'closed' for transfer (to collections). One CR company shows Only no balance due and that this loan is closed.
Another CR company shows only the collection people as closed.

I also wrote letters to each CR company stating my T & P disabilty & they removed quite a few negative and expired listings.
I read that on one of the boards...it works!

I also read wait until....a listing shows as 'closed' then request it removed, again, the folks at said listing cant answer the dispute
because account is now frozen in their computers as it is 'closed' ..., so the CR companies remove said listing....
I'm working on this to see that this works-currently.

All this after claiming bancruptcy. My husband who had great credit before we claimed bancruptcy , is still receiving lots of car loan and credit card
letters to sign up for, thats the sign your credit is good! the other thing to watch out for & get removed....credit inquiries, many companies were doing this without my knowledge, I had those removed, more than 6 in 2 years, really screws up your credit, so watch that., the bancruptcy did not really go against us per se. Good Luck to you!

[6speed8]

I had the same 1099 issue with mine. Issue meaning they didn't hold me accountable for the taxes. While dealing with illness and disability, I was also dealing with Tax Refund Fraud. The IRS was treating me like the criminal and not the victim. They levied a $50,000 lien against me. While dealing with that, I was talking to a Tax Advocate who told me she saw the $18,000+ loan discharge happening and mentioned I may be held accountable for taxes on it. The IRS ultimately didn't because of my disability insolvency and had already deemed me "uncollectable" for the lien amount. The problem I needed to deal with was that even though deemed uncollectable, the IRS can and will, leave the lien in place for 10 years as they can reattempt collection for that long if your financial situation improves. So to get it off my credit report, I filed an Offer In Compromise. It was tantamount to admitting I committed the fraud but I had to get off my back. By the allowable exemptions and deductions on the OIC form, rent,utilities,etc and as a single person, allowed $589 per month (If you want to claim more than that, you have to itemize)  for food, clothing, entertainment,etc I was $26.00 in the black each month when I filed it. So my OIC was $26 x 12 = $312.00. It took about 5 or 6 months for the decision but it was approved. Helped my credit ratings out almost immediately. It was removed December 29th. I notified all reporting agencies. By early February my numbers were jumping up. My numbers were up nearly 100 points before my Ch 7 Discharge in June. Now that I've received the letter from Nelnet that I've completed the monitoring period,  I'm just waiting for all six loans to be reported as Paid/Closed, which was supposed to happen yesterday. If I don't see that happen within the next week, I'll call them every hour until they do lol.

[Anonymous]

I just applied for a TPD through NelNet, sent in te application about a week and a half ago, and they received it on the 11th, and updated my DisabilityDischarge.com account to reflect that.

How long does the whole process take? I've been looking at this thread for a while, and would like to know what I should look out for, I'm sure I will have to dispute with the CBs on some stuff like I read here.

I have about $22K in debt that will be discharged if accepted, so it would be a big burden off my back, I am on disability, and am not able to pay back anywhere near the minimum, I'm a little terrified that they will decline it.

It's not thorugh a VA or through the SSA Award letter, so it's through my Doctor, who is an MD. How does the process go, they said on Friday that I will hear back withing 7-10 business days, I'm hopeful they say I've been approved.

Unfortiunately I stil have 1 loan that they can't touch, a private loan, which I would hope to pay off monthly through Navient.

Any suggestions or answers would be greatly appreciated.

-Jason

[2b2rich]

---

@Anonymous wrote:

I just applied for a TPD through NelNet, sent in te application about a week and a half ago, and they received it on the 11th, and updated my DisabilityDischarge.com account to reflect that.

How long does the whole process take? I've been looking at this thread for a while, and would like to know what I should look out for, I'm sure I will have to dispute with the CBs on some stuff like I read here. Every claim is different and it will depend on how much supporting evidence they have or don't have as to how long it will be for yours.

I have about $22K in debt that will be discharged if accepted, so it would be a big burden off my back, I am on disability, and am not able to pay back anywhere near the minimum, I'm a little terrified that they will decline it.

It's not thorugh a VA or through the SSA Award letter, so it's through my Doctor, who is an MD. How does the process go, they said on Friday that I will hear back withing 7-10 business days, I'm hopeful they say I've been approved. Sorry, I'm not familiar with any claims other than VA & SSDI letters, but I know the letters by doctors are listed as being acceptable forms.

Unfortiunately I stil have 1 loan that they can't touch, a private loan, which I would hope to pay off monthly through Navient.

Any suggestions or answers would be greatly appreciated.

-Jason

---

Nelnets real job here is to review everything you submitted and decided if it looks likely that it will be approved for discharge by the Dept of Education.  If it appears to them that all is in order, they will then submit it to the Dept of Ed for the final decision (approval or denial).

If they feel that it isn't likely to be approved by the Dept of Education, then they will send you a letter stating their findings or what they need from you in order to make it ready to send to the Dept of Education for a decision.

This is why no one can really tell you how long it will take.  You will have a better answer to that once you receive that 7-10 response from nelnet. 

[Anonymous]

Thanks 2b2rich, I'm just a bit nervous about this, I'm praying it goes well. I never even knew about Nelnet untl Navient told me about this program.

I guess I will wait and see what happens in the next week and a half.

[Anonymous]

Jay, 

from my experience to date it took from April-june to approve the disability discharge through Nelnet. There was a hang up at one point, with the app., so I would check with Nelnet every 30 days to see where they are in the process of approving or denying. In case there is a discrepancy, you can clear it up by phone, because they did not reach out to me requesting any information. Which could have thrown off that 90 day timeframe from the date the doc signs the paperwork.

My discharge approval was technically approved in june, however, they still are not discharged. All of my lenders, except Navient, have sent back the appropriate information to Nelnet and those are reflected on my CRS, except for NAVIENT.

i am not having any luck getting a straight answer from Navient as to what the hold up is, and today was told the "approval" took place at the end of August (it did not, as Nelnet, and all other lenders state the June date.

if you have ANY loans through Navient STAY on them, speak to a supervisor. The minute you get the official discharge status date from Nelnet, send that to Navient. Attn: Processing. I waited over a month and then contacted Navient, they claimed they didn't receive anything, and all the while continue To charge interest on all the now discharged loans. This so far, has been quite a complicated process, and I am still dealing with the initial steps.

i check this board frequently also, as to know what the next step I will need to do.

[Anonymous]

Capz, hopefully it gets worked out for you, I just hope I get the approval letter, and then I can go from there.

I use to have Sallie Mae as my lender, not sure why Navient took over, it does say my loans were sold to them, not sure if true.