I have had the worst nightmare with my student loans.
I have been working with the Ombudsman for the Dep of Ed for nearly 3 months. I am trying to have my defaulted student loans report correctly.
I am in a really weird situation
My SLS student loans went in to default in 12/05
I had a stroke in 1/06, I am on Permanent Disability
I paid my all loans in 5/2006
I am not looking to have them discharged now.
I am at my wits end and really looking for anything that I can use in my favor when I try to reason with the Dep of Ed.
My loans are still reporting as unpaid after they have been disputed many many times and paid for over two years. Each time I dispute they actually are reported worse than when I started. I had 7 so they are just killing my credit.
Can a SLS loan be discharge due to disability ocne it was gone it to default?
Can a Stafford Subsidized loan be discharge due to disability ocne it was gone it to default?
TIA for the help!
Full Version: Can a SLS be discharged due to disability
Sorry to hear about your predicament.
If the information in your credit reports is incorrect, you need to be filing with the CRAs, not the Dept of Education. Sure they might be able to help you, but as you are experiencing, they are not compelled to help you.
If you dispute something on your credit record, the lender must supply proof that the debt is valid as reported or the CRA must remove it from your credit report.
I'm not an expert on filing this type of error report, but there is a ton of stuff online to help you.
To answer your other question, I don't believe you can have the loan discharged due to the timing of your disability vs. when the loans were defaulted.
Good luck.
If the information in your credit reports is incorrect, you need to be filing with the CRAs, not the Dept of Education. Sure they might be able to help you, but as you are experiencing, they are not compelled to help you.
If you dispute something on your credit record, the lender must supply proof that the debt is valid as reported or the CRA must remove it from your credit report.
I'm not an expert on filing this type of error report, but there is a ton of stuff online to help you.
To answer your other question, I don't believe you can have the loan discharged due to the timing of your disability vs. when the loans were defaulted.
Good luck.
QUOTE (bonbonXO @ Sep 6 2008, 11:35 AM) 
I have had the worst nightmare with my student loans.
I have been working with the Ombudsman for the Dep of Ed for nearly 3 months. I am trying to have my defaulted student loans report correctly.
I am in a really weird situation
My SLS student loans went in to default in 12/05
I had a stroke in 1/06, I am on Permanent Disability
I paid my all loans in 5/2006
ok...you paid on them or paid them off???
I am not looking to have them discharged now.
I am at my wits end and really looking for anything that I can use in my favor when I try to reason with the Dep of Ed.
My loans are still reporting as unpaid after they have been disputed many many times and paid for over two years. Each time I dispute they actually are reported worse than when I started. I had 7 so they are just killing my credit.
If you defaulted , you should have 2 negative tradelines for each loan.
Tradeline 1 will be your lender/servicer. Will report "collection, default, claim filed with the government"...something to that effect. It will have a final statusof 180 days late with a zero balance. This will report for 7 years from the date they filed the claim with the guarantor.
Tradeline 2 with be your guarantor. Will report as "default claim paid". The tradeline is negative and will report for 7 years from the time they paid it.
Can a SLS loan be discharge due to disability ocne it was gone it to default?
Can a Stafford Subsidized loan be discharge due to disability ocne it was gone it to default?
Yes they can but it is very difficult to qualify. Being on SS disability doesnt necessarily qualify you. Most stoke applications I saw were denied because they were not 100% debilitating.
TIA for the help!
I have been working with the Ombudsman for the Dep of Ed for nearly 3 months. I am trying to have my defaulted student loans report correctly.
I am in a really weird situation
My SLS student loans went in to default in 12/05
I had a stroke in 1/06, I am on Permanent Disability
I paid my all loans in 5/2006
ok...you paid on them or paid them off???
I am not looking to have them discharged now.
I am at my wits end and really looking for anything that I can use in my favor when I try to reason with the Dep of Ed.
My loans are still reporting as unpaid after they have been disputed many many times and paid for over two years. Each time I dispute they actually are reported worse than when I started. I had 7 so they are just killing my credit.
If you defaulted , you should have 2 negative tradelines for each loan.
Tradeline 1 will be your lender/servicer. Will report "collection, default, claim filed with the government"...something to that effect. It will have a final statusof 180 days late with a zero balance. This will report for 7 years from the date they filed the claim with the guarantor.
Tradeline 2 with be your guarantor. Will report as "default claim paid". The tradeline is negative and will report for 7 years from the time they paid it.
Can a SLS loan be discharge due to disability ocne it was gone it to default?
Can a Stafford Subsidized loan be discharge due to disability ocne it was gone it to default?
Yes they can but it is very difficult to qualify. Being on SS disability doesnt necessarily qualify you. Most stoke applications I saw were denied because they were not 100% debilitating.
TIA for the help!
Thanks to-campusvitals, I have disputed, disputed and dipsuted again. My (defaulted) loan, that were paid on 5/2/2006 and they just updated to a current status of 08/08 120 days late.
I think my head just exploded!
LynnInMN-Thanks for the explanation, I have posted before, I do understand that I will have two trade lines reporting and I do understand that they will be there for the next 7 years, but I am at a loss as what the heck to do
ok...you paid on them or paid them off???
Yes (yippie) all loans are paid off!
Tradeline 2 with be your guarantor. Will report as "default claim paid". The tradeline is negative and will report for 7 years from the time they paid it.
This is where I am having the big problem all (7) guarantor trade lines if you will are reporting as 08/08 120 days late and that the loans are being paid through wage garnishment-They are currently being disputed, this is my 2nd dispute with the CRAs (with ex it is my 3rd) and each time I dispute them they actually report worse.
Hopefully this dispute will get them corrected.
If not do you have any suggestions???
I think my head just exploded!
LynnInMN-Thanks for the explanation, I have posted before, I do understand that I will have two trade lines reporting and I do understand that they will be there for the next 7 years, but I am at a loss as what the heck to do
ok...you paid on them or paid them off???
Yes (yippie) all loans are paid off!
Tradeline 2 with be your guarantor. Will report as "default claim paid". The tradeline is negative and will report for 7 years from the time they paid it.
This is where I am having the big problem all (7) guarantor trade lines if you will are reporting as 08/08 120 days late and that the loans are being paid through wage garnishment-They are currently being disputed, this is my 2nd dispute with the CRAs (with ex it is my 3rd) and each time I dispute them they actually report worse.
Hopefully this dispute will get them corrected.
If not do you have any suggestions???
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