Student Loan Applications are not always easy to understand and, in many cases, they are the first samples of a whole new world for those who apply, who have just finished their studies and who need to finance their higher studies.
There are many different types of discharge when it comes to student loans, and there are many things candidates need to know. We have the answers to your questions.
What happens if my student loan release request is approved?
If you qualify for a release for the full amount of your loan, you are no longer obligated to make loan repayments. Individuals who are only eligible for a partial release, however, remain responsible for repaying the remaining balance.
It is possible that an individual, depending on the type of release, will receive a partial or full refund of previous payments made on the loan.
What does it mean to have a student loan discharged?
If you have a discharged loan, it means that you are no longer obligated to repay the loan. The discharge will also be reported to credit bureauswho will ensure that any adverse credit history associated with the loan is repaid.
Do Freed Up Student Loans Increase Credit Scores?
Profitable student loans is not something that is reflected in credit scores, but the overall financial situation improves as an individual’s debt-to-income ratio improves. In turn, this can allow individuals to qualify for a better rate on the purchase of a home or car.