I might be late to the party, but I’m not sure what’s going on with my federal loans. I have a ridiculous amount of loan debt and I’ve been good about repayment/keeping up with things. Last year, I had some health issues and let my loans slip a bit. I know I needed to call to get my forbearance set up, but I didn’t. I was recently checking my credit score, and all my loan balances show $0, but my credit score is very high. I don’t have any new mail about my loans, and I’m honestly afraid to check online for fear of alerting someone to my mysterious loan disappearance. Maybe I fly under the radar with this new turn of events?
If my loans were in collections, I’d assume it would tank my credit score. Do you think this has anything to do with the govt switching loans to the treasury? Should I call?
Student loans are gone?
byu/ContributionMother87 inStudentLoans
Posted by ContributionMother87
3 Comments
What does your FSA Dashboard say about the loans? https://studentaid.gov/fsa-id/sign-in/landing
There could be several things (all of which are either neutral or bad for you) but my guess is that ED is moving your loans from your current servicer (which is why those accounts show $0) to a new servicer. This happen periodically anyway but could also be a prelude to ED declaring your loans defaulted and beginning collections activities. (That will eventually hit your credit reports, but usually not immediately. Those updates tend to lag about a month behind.)
If your federal loans defaulted you would still have a hit to your credit.
The collections piece was transferred to the Treasury.
I would check studentaid.gov. you can see the status of your loan and where it is assigned.
Your loans could have been bought and transferred to the new loan servicer. Get on it!