Officially, Credit Reports reflect changes 90 to 120 days after the Department of Education’s approval:
- ALL Individual Federal Student Loans will show a ZERO BALANCE OWED & PAID IN FULL.
- There will be ONE NEW Loan with the Department of Education showing the total amount of debt owed and a new lower monthly payment.
What will not occur during the Student Loan Forgiveness Process that would hinder a mortgage approval:
No 30-Day Late Payments
No Settled Accounts
No Disputed Items
A client's monthly payment is determined by the Department of Education based on the client's current income and household size.
My Education Solutions will administer the client's program in a way that results in the lowest monthly payment possible and a highest chance of mortgage qualification with regard to the fully amortized loan.
A client's student loan interest rate is determined as the average of all interest rates for the client's active Federal Student Loans.