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TPD Discharge question!

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New Contributor

TPD Discharge question!

Hello All.. I just got an email that my loans have been discharged! YAY! only now I am left wondering if this is going to be a good or bad thing for me on my credit.

 

loans are discharged bc i recently was upped to 100% p&t through the VA. so i do not have the 3 year period. my loans are all with Navient.

 

What happens when they are trasfered to nelnet? will that transferred comment or code still be an issue on my CR? anyone recently had a discharge be approved who had navient and have some results they wouldnt mind sharing?

 

Thank you. I am getting my score ready to buy a house and very nervous about my score being negatively affected.. hopefully I will see a jump in score and wont have to try and have them removed bc there are 10 of them and they are my oldest accounts.

tia


2/25/19 FICO 08 = EX-580, EQ-559, TR-610
Current FICO8 as of 5/21/19 = EX 621, EQ?, TR?
Exp mortgage score 607!
Message 1 of 12
11 REPLIES 11
Valued Contributor

Re: TPD Discharge question!

Congrats on the discharge!  I know how stressful the whole thing can be!  I am not sure how it works when it is granted.  I would imagine since you don't have the 3 year buffer that things should be updated 30-60 days for all the CRA's.  Hopefully someone that has gotten the same discharge can chime in and answer. 

Message 2 of 12
New Contributor

Re: TPD Discharge question!

They must do approvals in batches because I received the same email today.  Just waiting to see balances updated on my credit reports and how that will affect my scores.

Message 3 of 12
Regular Contributor

Re: TPD Discharge question!

Congrats on your the discharged student loan! Unfortunately, I don't think this will have any affect on your Credit Reports. I had my loans discharged little over a year ago and none of the scores changed for any of the FICO models.

Message 4 of 12
New Contributor

Re: TPD Discharge question!

Thank you all for the replies. If my scores dont change I will be just glad they didnt go down! I will be glad to see that I have no debt anyway.. maybe that will help me when it comes to getting approved for other credit since i wont have almost 50k of student loans hanging over my head. 

My original search for this answer brought up some older topics where people were effected terribly by some wording on the transfered loans and I got super nervous which led to posting here. Last night I read through posts here and found a few newer posts and it seems that issue has since been resolved and most people do not see a change in their score at all when the loans close unless they have no other installment loans then sometimes the score drops because the mix of accounts goes down.

Thanks again for the responses... fingers crossed!


2/25/19 FICO 08 = EX-580, EQ-559, TR-610
Current FICO8 as of 5/21/19 = EX 621, EQ?, TR?
Exp mortgage score 607!
Message 5 of 12
Regular Contributor

Re: TPD Discharge question!

That's a good point about the installment loans. My scores didn't change probably because I have another installment loan. But for someone who doesn't, that might be a different story. But yes, the major thing is you don't have that loan burden anymore. It will certainly help you with your DTI whenever you do apply for mortgage Smiley Happy

Message 6 of 12
Established Contributor

Re: TPD Discharge question!

You probably already read this, but they provided an update every step of the way. https://ficoforums.myfico.com/t5/Student-Loans/TPD-Loan-forgiveness-with-VA-disability-rating/td-p/4...



Message 7 of 12
New Member

Re: TPD Discharge question!

I recently had my student loans discharged. The balance was 77k. While they now show closed and zero balances, my score dropped about 26 points.  May not seem like much, but in the rebuilding process, a hit is a hit. 

Message 8 of 12
Established Contributor

Re: TPD Discharge question!

Did you have any other installment loans?



Message 9 of 12
New Member

Re: TPD Discharge question!

Yes, I have a self lender account that I’ve had for a while. Credit utilization is less than 20%. 

Message 10 of 12
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