So today I found out that not only did I qualify for the Public Service Loan Forgiveness program, but that for each loan (I had 2), I had made more than the 120 required payments (144 to be exact - for each loan) and that once Dept of Education signed off on everything (typically 30 days), I would be getting a refund of the 48 extra payments (I have no idea how much, payments varied over the years, but I'm guessing a refund anywhere from $5K to 9K). So, obviously good news.
My question for this forum, is does anyone have any insight on what is this going to do to my scores? I know there's no way to predict and everyone's profile is different, but wanted to get some advice.
My profile is dirty (BK7 in 2019) but I have quickly rebounded, have 8CC with a total CL of right at $90K (utilization is about 20%, that will be down to less than 10% in the next 4 months). Scores are: EQ - 687; TU - 681; EX - 674. I went on an app spree this spring (4 cards in 4 months) but I'm in the garden until 10/24, when I should be able to get in with Amex. Other than my student loans and CC, I have a car loan through NFCU. I do have a few 30, 60, 90 days late that pre-dated my BK7, but those are all slated to fall off this year. Since my BK7 I have had no negatives.
I wasn't sure if the student loans falling off is going to affect my credit mix and if there's anything I can do in the interim to negate the impact. Any suggestions are greatly appreciated. While I worry about the affect on my scores, being approx $50K less in debt is definitely more important than a 10-20 point hit to my scores.
@md_rebuild wrote:So today I found out that not only did I qualify for the Public Service Loan Forgiveness program, but that for each loan (I had 2), I had made more than the 120 required payments (144 to be exact - for each loan) and that once Dept of Education signed off on everything (typically 30 days), I would be getting a refund of the 48 extra payments (I have no idea how much, payments varied over the years, but I'm guessing a refund anywhere from $5K to 9K). So, obviously good news.
My question for this forum, is does anyone have any insight on what is this going to do to my scores? I know there's no way to predict and everyone's profile is different, but wanted to get some advice.
My profile is dirty (BK7 in 2019) but I have quickly rebounded, have 8CC with a total CL of right at $90K (utilization is about 20%, that will be down to less than 10% in the next 4 months). Scores are: EQ - 687; TU - 681; EX - 674. I went on an app spree this spring (4 cards in 4 months) but I'm in the garden until 10/24, when I should be able to get in with Amex. Other than my student loans and CC, I have a car loan through NFCU. I do have a few 30, 60, 90 days late that pre-dated my BK7, but those are all slated to fall off this year. Since my BK7 I have had no negatives.
I wasn't sure if the student loans falling off is going to affect my credit mix and if there's anything I can do in the interim to negate the impact. Any suggestions are greatly appreciated. While I worry about the affect on my scores, being approx $50K less in debt is definitely more important than a 10-20 point hit to my scores.
1. Congratulations!!! Great news.
2. Your fear of a hit to your scores is unfounded; most likely your scores will be significantly better once the dust settles.
3. The loans won't 'fall off'; they will continue to appear in your reports as paid off loans. So no, it will not affect your credit mix.
4. You haven't given us enough information to assess the impact on your scores, or to advise you on how to best utilize this event to help your scores; we need to know:
- original loan amount and current balance of the auto loan with Navy (hint: it's good news that your loan is with Navy) and
- original loan amounts of the student loans and their balances before the forgiveness
@md_rebuild wrote:So today I found out that not only did I qualify for the Public Service Loan Forgiveness program, but that for each loan (I had 2), I had made more than the 120 required payments (144 to be exact - for each loan) and that once Dept of Education signed off on everything (typically 30 days), I would be getting a refund of the 48 extra payments (I have no idea how much, payments varied over the years, but I'm guessing a refund anywhere from $5K to 9K). So, obviously good news.
My question for this forum, is does anyone have any insight on what is this going to do to my scores? I know there's no way to predict and everyone's profile is different, but wanted to get some advice.
My profile is dirty (BK7 in 2019) but I have quickly rebounded, have 8CC with a total CL of right at $90K (utilization is about 20%, that will be down to less than 10% in the next 4 months). Scores are: EQ - 687; TU - 681; EX - 674. I went on an app spree this spring (4 cards in 4 months) but I'm in the garden until 10/24, when I should be able to get in with Amex. Other than my student loans and CC, I have a car loan through NFCU. I do have a few 30, 60, 90 days late that pre-dated my BK7, but those are all slated to fall off this year. Since my BK7 I have had no negatives.
I wasn't sure if the student loans falling off is going to affect my credit mix and if there's anything I can do in the interim to negate the impact. Any suggestions are greatly appreciated. While I worry about the affect on my scores, being approx $50K less in debt is definitely more important than a 10-20 point hit to my scores.
It will come down to loan util %'s. Yes. Balances will change. Your auto loan will be used as your loan util in the credit mix as if you had no SL since they will be $0 balance. The rest of your file will act as any of us who claimed BK and had to rebuild from stratch.
@FireMedic1 wrote:
@md_rebuild wrote:So today I found out that not only did I qualify for the Public Service Loan Forgiveness program, but that for each loan (I had 2), I had made more than the 120 required payments (144 to be exact - for each loan) and that once Dept of Education signed off on everything (typically 30 days), I would be getting a refund of the 48 extra payments (I have no idea how much, payments varied over the years, but I'm guessing a refund anywhere from $5K to 9K). So, obviously good news.
My question for this forum, is does anyone have any insight on what is this going to do to my scores? I know there's no way to predict and everyone's profile is different, but wanted to get some advice.
My profile is dirty (BK7 in 2019) but I have quickly rebounded, have 8CC with a total CL of right at $90K (utilization is about 20%, that will be down to less than 10% in the next 4 months). Scores are: EQ - 687; TU - 681; EX - 674. I went on an app spree this spring (4 cards in 4 months) but I'm in the garden until 10/24, when I should be able to get in with Amex. Other than my student loans and CC, I have a car loan through NFCU. I do have a few 30, 60, 90 days late that pre-dated my BK7, but those are all slated to fall off this year. Since my BK7 I have had no negatives.
I wasn't sure if the student loans falling off is going to affect my credit mix and if there's anything I can do in the interim to negate the impact. Any suggestions are greatly appreciated. While I worry about the affect on my scores, being approx $50K less in debt is definitely more important than a 10-20 point hit to my scores.
It will come down to loan util %'s. Yes. Balances will change. Your auto loan will be used as your loan util in the credit mix as if you had no SL since they will be $0 balance. The rest of your file will act as any of us who claimed BK and had to rebuild from stratch.
Closed loans still count toward "credit mix".
@SouthJamaica wrote:
@FireMedic1 wrote:
@md_rebuild wrote:So today I found out that not only did I qualify for the Public Service Loan Forgiveness program, but that for each loan (I had 2), I had made more than the 120 required payments (144 to be exact - for each loan) and that once Dept of Education signed off on everything (typically 30 days), I would be getting a refund of the 48 extra payments (I have no idea how much, payments varied over the years, but I'm guessing a refund anywhere from $5K to 9K). So, obviously good news.
My question for this forum, is does anyone have any insight on what is this going to do to my scores? I know there's no way to predict and everyone's profile is different, but wanted to get some advice.
My profile is dirty (BK7 in 2019) but I have quickly rebounded, have 8CC with a total CL of right at $90K (utilization is about 20%, that will be down to less than 10% in the next 4 months). Scores are: EQ - 687; TU - 681; EX - 674. I went on an app spree this spring (4 cards in 4 months) but I'm in the garden until 10/24, when I should be able to get in with Amex. Other than my student loans and CC, I have a car loan through NFCU. I do have a few 30, 60, 90 days late that pre-dated my BK7, but those are all slated to fall off this year. Since my BK7 I have had no negatives.
I wasn't sure if the student loans falling off is going to affect my credit mix and if there's anything I can do in the interim to negate the impact. Any suggestions are greatly appreciated. While I worry about the affect on my scores, being approx $50K less in debt is definitely more important than a 10-20 point hit to my scores.
It will come down to loan util %'s. Yes. Balances will change. Your auto loan will be used as your loan util in the credit mix as if you had no SL since they will be $0 balance. The rest of your file will act as any of us who claimed BK and had to rebuild from stratch.
Closed loans still count toward "credit mix".
I know that. I meant really doesnt matter what kind of loan. Student, Auto, ect. It was more on the util side of the loan mix side. The aggregate % will change.
Thanks. That's what I was unclear on, was the credit mix. I thought it "fell off". So now, since I don't have student loans (or won't in the very near future), I'll need to ensure that I have something in my "mix" for when I pay off my car loan (which may be next year). At that point, I'd only have my credit cards.
@md_rebuild wrote:Thanks. That's what I was unclear on, was the credit mix. I thought it "fell off". So now, since I don't have student loans (or won't in the very near future), I'll need to ensure that I have something in my "mix" for when I pay off my car loan (which may be next year). At that point, I'd only have my credit cards.
No, your "credit mix" is unaffected, since it includes closed as well as open accounts.
What will be at play when they're all paid off is something entirely different... a no-open-loan penalty.
Meanwhile, as I told you earlier in this thread:
You haven't given us enough information to assess the impact on your scores, or to advise you on how to best utilize this event to help your scores; we need to know:
- original loan amount and current balance of the auto loan with Navy (hint: it's good news that your loan is with Navy) and
- original loan amounts of the student loans and their balances before the forgiveness