For anyone going through the process of loan forgiveness through the Total & Permament Disability Discharge program, here is my experience and timeline so far. I am a 100% Disabled Vet and am not under the 3yr review process. I have $48K in student loans, reporting as 10 separate loans ranging from $31-$22K. Paid as agreed, no late payments. The loans are a significant amount of my credit, so I am a bit concerned about my score. But I have a mortgage and 2 credit cards currently open, another paid mortgage (transferred), paid auto and installment loans, paid student loans, so hopefully paying these student loans won't hurt too much, if at all. On the negative side, I have one unpaid collection for $600 that I refuse to pay because it's not mine and 2 paid collections, one of which was PFD and should be falling off in a few weeks.
Okay, I submitted my application in early April. A week or so later, Nelnet requested more information, because I sent a copy of the VA benefits letter fro e-beenfits as proof of my disability status, but it did not include the initial decision date. I did not want to send a copy of my original decision letter because it has my personal medical info, so I requested a letter from the VA with the pertinent info. Asked them to email it, rep told me that she wasn't allowed to email. She mailed it to me, but I never got it. Called again, this rep emailed it to me the same day (come to find out they can email it, so request it). I emailed and uploaded to Nelnet website the same day, 27 May, and was approved for Permanent Discharge on 8 June. All in all, if I had not had the delays, I'm guessing it may have taken about 30-45 days from submission to discharge.
As it relates to credit reporting, I'm still waiting to see updates and have no clue when that may happen. It's been over 30 days since discharge and no changes to my CRs yet. Last week I had an annoying exchange with Nelnet and my service provider, Direct Loans in an attempt to find out the status. In a span of 30 minutes I talked to 3 different Direct reps, with 3 different stories as to the status of my account. This went from Direct blaming Nelnet, claiming Nelnet never sent Direct what they need to complete the discharge, close my loan and update my credit reports, to somehow locating exactly what Nelnet said they sent to Direct on 8 June to initiate the process. Direct then said that they would have everything processed and info sent to the CRA's within 2-4 days. This was all last Monday. My CR's updated today with no change to the student loan tradelines. It may be too early, so I'll watch and keep you all posted.
I also have not received a refund on the payments made toward the loans since my disability decision in 2015. I didn't even have the energy to ask Direct about it after going back and forth with them that day.
Hope this info helps someone. Also, if anyone has any insight into the timeline and process of credit reporting after discharge, please share.
Thanks!
