Get student loans forgiven?

How to get student loans forgiven? There are a few ways to do it.

I had an interview with the chairman of the Mortgage Bankers Association and student debt was his biggest concern the way student loans are killing the first time home buyer. Young people fresh out of college are not able to qualify because they are graduating on average with $30,000 in debt.

That includes the people who graduate with zero debt meaning that half the students are above that amount and half are below, When you consider the costs of buying a new home. income that could go to housing costs has to go to student loans instead.

Last year at this conference as I started to cover this strategies on how to handle student loans, someone from the audience said “what about debt forgiveness?”

Is there anyone here that was actually able to get someone’s loan debt forgiven? How many?

Audience: I had four!

Dave: Could you come here for a second please?

Dave: My strategic is when you come home from college you will have one loan for every term, that is killing your credit score because it looks like you have 10-15 accounts all at the high balance. The first step to repairing your credit after college is to get a consolidation loan.

Unless you can get the debt forgiven, can you tell me the story of how you were able to get college loan debt forgiven?

Audience:  Unfortunately, it was because the borrower became permanently disabled. When someone becomes permanently disabled you can get student loans forgiven. That is the only way I was able to get the debt forgiven.

Dave: ok great thank you, well that is an option but not a great option.

This is the other strategy, get all the student loans grouped together in a consolidation loan. Some people ask “where can I get a consolidation loan?” Start with the company that currently holds their loans. Make the request to have all of the accounts combined into one. After the consolidation, the borrower winds up with one maxed out student loan and all the other accounts are zero, from a credit score perspective, this is a much better situation.

Step two is to get a deferment. A deferment is a time where you don’t have to make any payments. Have your applicants apply for the deferment and from a mortgage perspective, there are programs that will remove the debt service payments from the qualification ratios if the deferment is more than twelve months out. You can talk to a mortgage provider for more on that.

So consolidation loan to a deferment, then you are ready for a mortgage application. An Individual will still need other good credit, besides student loans to create a good credit score.

If you want to see more videos about credit and credit scoring check these out at www.thecreditguy.tv. If  you are a mortgage lender please share this on your Facebook or LinkedIn page.   If you have any questions, leave them down below I’d be happy to answer them.

perfect credit score
  • Facebook
  • Twitter
  • Google Plus
  • Pinterest
  • Linkedin

7 secrets of a perfect credit score

Completely Free Credit Score
  • Facebook
  • Twitter
  • Google Plus
  • Pinterest
  • Linkedin
MyFico
  • Facebook
  • Twitter
  • Google Plus
  • Pinterest
  • Linkedin

Go to www.getloanready.com to find other ways to improve your credit score. I’m Dave Sullivan here for the credit guy TV so you with a little bit me we’re going to change the credit industry thank you

Why is my credit score different when a lender pulls it?

90% of Top Lenders Use FICO® Scores

  • Facebook
  • Twitter
  • Google Plus
  • Pinterest
  • Linkedin

 

Type of Forgiveness, Cancellation, or Discharge

Direct Loans

Federal Family Education Loan (FFEL) Program Loans

Perkins Loans

Closed School Discharge

x

x

x

Total and Permanent Disability Discharge

X

X

X

Death Discharge

X

X

X

Discharge in Bankruptcy (in rare cases)

X

X

X

False Certification of Student Eligibility or Unauthorized Payment Discharge

X

X

Unpaid Refund Discharge

X

X

Teacher Loan Forgiveness

X

X

Public Service Loan Forgiveness

X

Perkins Loan Cancellation and Discharge (includes Teacher Cancellation)

X

Comments

Pin It on Pinterest

Shares
Share This