I had a student loan I was paying and lender sold my loan to another lender, who called and asked me pay it off in lump sum at a discount of 30% (I could've continued payments). I paid the lump sum. Can they give me a 1099? Will this hurt my credit score?
by 
Bogey Golf
ANSWERS: 2
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I've never heard of a student loan company doing that - interesting. I'd make sure you keep the letters from your previous/current lenders that notifies you of the sale/assumption if you plan to apply for any loans since credit reporting is sometimes slow to show changes. I might also ask for a letter from your lender showing the status of the account (a verification of loan - VOL). How it shows up depends on what was negotiated - the language they use if very important since it could be reported as "settled", "short pay" or "paid" under the status line of the loan on the credit report. If it shows as settled or a short pay it will affect your credit score in a negative way since it will look like you didn't fullfill the original terms of the agreement. Since you can run your credit once a year for free I would suggest you run it and look under the "status" section to see what's listed in that line item and make sure that it shows as a $0 balance. You should get a 1099-C for the difference. https://www.annualcreditreport.com/cra/index.jsp
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Strathcona is correct regarding the 1099 form/responsibility. As for being offered, and accepting this lump sum pay-off, I've never heard of it either. By law, when your loan is sold, your original terms MUST apply. That being moot since you've paid it, it will not hurt your credit score in the least, as long as it is reported as "paid in full" or "paid per terms," etc. Your credit score will actually go up a bit since you no longer have that debt.
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