Student loan forgiven, how should it report?

[fxs158]

I had 2 student loans forgiven due to a disability. How should they look like on my report? right now they apear as charge/off

[MistakeOfPast]

Am bumping as I need to know.

Had success w/ ombudsman w/ NYSHESC and a deletion as they were guarantor; however... holder has the FOUR original tradelines reporting as negative payments after chargeoff/colletion

These were discharged due to disability.

 

Anyone know if these should be removed as well? Or should the lates be removed since all my payments that I ever made are refunded to me under statute?

 

Thanks board!

[snowpuppy]

They should report as chargeoff. Sorry, but the feds paid the claim to your lender.

 

You can try disputing to see if they come off.

[hegemony]

They should report as chargeoff.  Sorry, but the feds paid the claim to your lender.

 

<{POST_SNAPBACK}>

then why is it a charge off if the lender was paid?????

[shop_free]

They should report as chargeoff.  Sorry, but the feds paid the claim to your lender.

 

<{POST_SNAPBACK}>

then why is it a charge off if the lender was paid?????

<{POST_SNAPBACK}>

 

This doesn't make any sense to me either.

On ms sister's reports it shows as paid.

[MistakeOfPast]

Not to say that you guys don't know what you are talking about...because YOU DO!!!!

 

But I want to make sure!!!

 

The accounts were noted as charge off/collection....THEN years later my loan was forgiven due to disability and all my payments were REFUNDED to me.... since this happened it doesn't make sense that the TL shows as a charge off...

Anyone?

[snowpuppy]

There is a difference between discharge and forgiveness. Loans are 'discharged' due to disability meaning you are incapable of repaying your loans because your disability keeps you from earning a meaningful wage.

 

Loans may be 'forgiven' because you are working in an eligible field that serves a population with need such as teaching or nursing.

 

You didn't indicate when your discharge took place. This is guidance for loans discharged on or after July, 2002. If the date was earlier, I will try to find guidance on that.

 

http://ifap.ed.gov/dpcletters/GEN0203.html

[MistakeOfPast]

Very informative!!!

 

Gosh, you know your stuff.

 

I was injured in Desert Storm...that's 1990 era.

Funny, in reading the link provided I could scream!

 

My original lender REJECTED the paperwork they sent me to fill out and I sent back to them after the md signed it claiming the paperwork changed

 

and they were "no longer accepting" the old forms. When the link said they were. That's why my credit was ruined because I went into default because I had to start the process all over again w/new forms and the time lapse! That's why I just gave up!

 

Geesh! Well, water under the bridge!

 

So the disability date was prior to 2002....to answer your question. Thanks for all your help. Just a note, the dept of ed, at the same time discharged an unsub loan, they removed the negative right off the bat...no prob. It's this other lender that has given me so much trouble over the years!