Right now,I haven't had any student loan payments even due. But I withdrew from the Spring 2016 semester, having health problems, planning on startrng again in September. GIven the Spring and Summer, the grace period gets used up, and I have a September due date for my first payments. Now, returning in September doesn't seem too likely. Turns out I have Stage IV lung cancer, which becomes automatically service connected because of exposure to Agent Orange, and now I'm a Totally and Permanently disabled vet, as per the VA. Which all by itself is all it takes for a total TPD discharge. So if I file now, all the student loans ought to just drop off the reports, before there are any late payments or anything. Am I right?
And will reducing my total installment debt by more than $65K (about 29% reduction, with my mortgage included) have any effect at all on my FICO score?
First of all my prayers are with you in regards to your cancer. It is always sad that a fellow brother in arms has to endure so much for our country and I hope the VA system can do everything for you in order to those matters.
In regards to the student loans, you are correct. I would file immediately since they will be discharged based on the effective date of your rating. I'm currently going through the process myself and should hear an answer in the next two weeks about them being discharged. I'm 100% T&P and submitted my request on the 23th of last month. From I have managed to gather from other people on different forums, Once discharged they will appear as paid in full or an equivalent of that lingo. I recommend you follow my thread in order to see how its going and receive any updates. I can answer any question you might have so far in the process.
I've actually beeen T&P for a while now, And I've already ised up the total loan amount I could get - they count VA disability compesation as income,there's even a special question on the FAFSA about it. Plus it's household income, so I had to count my wife's part time income, leaving me supposedly able to contribute $9K+ to my education. I wish they'd told me where thart $9K was hiding, so i could find it. So I only ever qualified for loans, nothing else. And my own GI Bill, which wasn't worth spit anyway, expired around 1980. Ironically, the question is "do you receive any VA benefits other than educatiuonal", so my wife could say no on hers since she doesn't get it, and qualified for lots of stuff since my compensation isn't taxable or on our return.
Anyway, I could have done the TPD bit long ago, but I figured I'd finish school and be able to swing the payments after. I'd have probably gone for 3 more semesters. I only need about 12 more semester hours in specific courses, but was going to go half time, just to keep the loian payments fron kjicking ib, and whern those courses are offered it would take at least 3 semesters to get them done.
Now that this cancer thing jumped up and bit me in the ass, that plan is sort of down the tubes. Since I'm already T&p and no payments are due until September, I'm thinking I can apply in August, and it'll be effective in August. ???