Jul
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If you qualified for Federal Student loan discharge due to disability,if you work again what is the procedure?
Credit
Natalie A asked:
Once they initially discharge the loan, will they refund any money you paid, how does this affect credit rating? How is this to be handled if the applicant begins working again after qualifying for the loan discharge?
Sphere: Related ContentOnce they initially discharge the loan, will they refund any money you paid, how does this affect credit rating? How is this to be handled if the applicant begins working again after qualifying for the loan discharge?
Tags: Credit Rating, Federal Disability, Federal Loan, Federal Student Loan, Loan Discharge, Money
July 30th, 2008 at 10:01 pm
If you need a discharge on a Federal loan because of a disability they will not refund any money you have already paid to the loan.
Now, for the first 3 years you are on a “conditional discharge” so if you start to work again and your earning are above the poverty lines for a family of 2, your loan will be taken out of discharge status. At that point you pick up where you left off when the Conditional Discharge started and you will be required to start payments on the loan again. To get the exact details read the notes from from the Student Aid Commission in the links below.
Your credit report will reflect the current status, so if it is discharged it will show as discharged. But if it was in default before it was discharged that will also be noted. Having the loan discharged will not just make the loan disappear off of your credit report.
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