Is a student loan open or closed?

Brandy Bahringer asked a question: Is a student loan open or closed?
Asked By: Brandy Bahringer
Date created: Sun, Jun 20, 2021 5:21 PM

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Top best answers to the question «Is a student loan open or closed»

Open-end loans, such as credit cards, offer revolving credit, meaning debt can be added to the loan as needed. By comparison, loans for a predetermined amount, such as auto loans, are considered to be closed-end loans.

Open-end vs.

Open-end loans, such as credit cards, offer revolving credit, meaning debt can be added to the loan as needed. By comparison, loans for a predetermined amount, such as auto loans, are considered to be closed-end loans.

FAQ

Those who are looking for an answer to the question «Is a student loan open or closed?» often ask the following questions:

✔️ When student loan account is closed?

The closed account may show up alone for a while, before the new servicer appears as the new owner of the debt. Rest assured, your student loans did not just up and disappear, and if you have missed enough payments for them to go into default and be sold to collections, you can expect they will find you and hound you to pay.

✔️ Is a credit card a closed or open loan?

Open-end credit also is referred to as a line of credit or a revolving line of credit. Open-end loans, like credit cards, are different from closed-end loans, like auto loans, in terms of how the funds are distributed and whether a consumer that has started to pay down the balance can withdraw the funds again.

Question from categories: home equity loan credit score mortgage line of credit secured loans

✔️ Can a closed student loan be reopened?

There is a wealth of information out there about this subject, but for the purpose of answering your question I have to tell you that chances are very good that yes, your loans can be reopened, and yes you should be worried that the debt is not actually gone.

Your Answer

We've handpicked 20 related questions for you, similar to «Is a student loan open or closed?» so you can surely find the answer!

Why was closed school student loan discharge created?

  • Basically – the program was created for people who ended up screwed when their school shut down, with no way of continuing the program they’d racked up student loan debt to pay for. How do Closed School Loan Discharges actually work?

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What type of loan is a credit card open or closed?

Open-end credit is a pre-approved loan, granted by a financial institution to a borrower, that can be used repeatedly. With open-end loans, like credit cards, once the borrower has started to pay back the balance, they can choose to take out the funds again—meaning it is a revolving loan.

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Are car loans open or closed coronavirus?

Of course, information about the ongoing COVID-19 pandemic continues to evolve. If you’re a car owner with a loan you’re unsure you can pay back, jump over to our story about auto loan relief...

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What is open and closed end credit?

Open-end credit agreements are also sometimes referred to as revolving credit accounts. The difference between these two types of credit is mainly in the terms of the debt and how the debt is repaid. With closed-end credit, debt instruments are acquired for a particular purpose and for a set period of time.

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Can my student loan be forgiveness if college closed?

student loan forgiveness meme student loans

Yes, you may be eligible for a 100-percent discharge of your Direct Loans, Federal Family Education Loan (FFEL) Program Loans, or Federal Perkins Loans under either of these circumstances: Your school closed while you were enrolled, and you didn't complete your program because of the closure.

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What does it mean when student loan is closed?

I think you have a misunderstanding of what “closed” meant when your student loans disappeared from your credit reports. The accounts were not closed, at least not in the sense that I think you mean. They just dropped off your report due to the timing. Your student loan debt is not actually gone, as you seem to think.

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What happens when your student loan account is closed?

Closed accounts in good standing will typically remain on your report for 10 years. You paid off or refinanced a loan. Paying off a loan usually closes the account. Since you've finished paying off your debt, you've fulfilled your obligation and the loan no longer needs to remain active.

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How do i choose a closed- or open-ended home equity loan?

When you apply for a home equity loan, you have to determine what type is best for you. A closed-ended home equity loan will give you a one-time lump sum payment, while an open-ended line of credit will give you availability to access funds as needed. Which you choose is ultimately a matter of your particular circumstances and needs.

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What is the difference between an open end and closed end loan?

closed end is like a car loan or mortgage where you agree repayments and have a fixed end date. open end is like a credit card ... you pay a minimium repayment each month but it could go on forever

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Are home equity loans open or closed end?

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Home equity loans come in two types: closed end (traditionally just called a home-equity loan) and open end (a.k.a. a home-equity line of credit). Both are usually referred to as second mortgages, because they are secured against the value of the property, just like a traditional mortgage.

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What are variable, fixed, open and closed mortgages?

Open Mortgage terms range from 6 months to 5 years and can have variable or fixed interest rates. Closed mortgages have a prepayment limit, which means you are only permitted to pay 15% of the original principal balance of the mortgage per calendar year.

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Can i get student loan forgiveness if my school closed?

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Yes, you may be eligible for a 100-percent discharge of your Direct Loans, Federal Family Education Loan (FFEL) Program Loans, or Federal Perkins Loans under either of these circumstances: Your school closed while you were enrolled, and you didn't complete your program because of the closure.

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Can my consolidated student loan be forgiven if school closed?

Here’s a common question from customers who have taken out student loans… Is it really possible to have my federal student loans forgiven or to get help repaying them? The answer: Yes! However, there are very specific eligibility requirements you must meet to qualify for loan forgiveness or receive help with repayment. Loan forgiveness means you don’t have to pay back some or all of your loan.

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How to recover student loan after school closed lost transcripts?

Getting Transcripts and Records from Closed Schools. You may have trouble getting your academic records after a school has closed. The Department advises that you should contact the state licensing agency in the state in which the school was located to get information about locating your records.

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Is there loan forgiveness for student if a college closed?

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Yes, you may be eligible for a 100-percent discharge of your Direct Loans, Federal Family Education Loan (FFEL) Program Loans, or Federal Perkins Loans under either of these circumstances: Your school closed while you were enrolled, and you didn't complete your program because of the closure.

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What do closed student loan accounts on credit report mean?

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Your account may be reported as closed for a variety of reasons. You requested it… Closed accounts in good standing will typically remain on your report for 10 years, while negative payment history for these accounts may remain on your report for seven years. You paid off or refinanced a loan.

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What does it mean if a student loan is closed?

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Student loans: a guide to terms and conditions 2020 to 2021. How you’re assessed and paid - 2020 to 2021 guide. 2021 to 2022 academic year. Student loans: a guide to terms and conditions 2021 to ...

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What does it mean when a student loan is closed?

I think you have a misunderstanding of what “closed” meant when your student loans disappeared from your credit reports. The accounts were not closed, at least not in the sense that I think you mean. They just dropped off your report due to the timing. Your student loan debt is not actually gone, as you seem to think.

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Why does my student loan say closed and payment deferred?

The most common reasons are (1) you consolidated the loans at some point, or (2) that the loans were transferred to a different servicer. Generally, in both those scenarios, the student loan would appear under a different servicer. When a student loan goes into default status, it is transferred to a different servicer.

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Why is my student loan closed on my credit report?

When a student loan goes into default status, it is transferred to a different servicer. The servicer that was handling the account would show the loans as closed/transferred on your credit report. Bear in mind, your credit report is not a legal document in the sense that it is not an official record of your legal obligations.

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