(3/18/19) A report came into the KLFY newsroom Saturday about student loan debt accounts showing as closed and/or paid in full during a recent review of credit scores.
D. Richard told KLFY that his credit score jumped by 20 points recently and when he investigated the matter through an online credit scoring site, to his surprise, it listed his student loan accounts with Navient as recently paid in full and another account as closed.
“All I could say was, Look at God,” Richard declared! “I’ve been out of school for a while now but I still owed about $28,000 so I was shocked and that’s why I called to see if yall ever heard of something like this happening.”
We checked online at the US Department of Education website to see if it was possible for an anonymous donor to randomly pay off someone’s debt. and while we could not find an answer to that question, the site did point out that there are several ways that student loan debt can be forgiven, canceled or discharged.
They included: public service loan forgiveness, teacher loan forgiveness, Perkins loan cancellation, total and permanent disability discharge, death discharge, closed school discharge, and unpaid refund discharge, all of which the debtor would have to apply for, show proof of, and wait 60-90 days for a determination letter to be mailed.
Some further research showed that some student loan accounts can show as closed on credit reports when the account is being transferred to another agency.
Richard said he is happy following the discovery, but would not be surprised if the debt re-appeared in the future due to some glitch.
“Maybe it will, maybe it won’t, but I hope it won’t, Richard said.” “I’ve done some good things in my life for alot of people and maybe this is God’s way of saying, good job.”