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If you use Fresh Start to get your loan(s) out of default, you’ll regain the ability to get federal student aid, such as grants or loans. Completing your degree may increase your potential income and help you boost your financial stability long-term.
In April 2022, the government introduced a temporary “Fresh Start” program that allows millions of borrowers who defaulted on their federal student loans to get them back into good standing....
Jun 5, 2023 · This initiative, called “Fresh Start,” will increase the long-term repayment success of borrowers with defaulted federal student loans, provide substantial benefits to borrowers over the coming months, and last for a period of one year from the end of the payment pause, as described below.
- What Is The Fresh Start Program?
- Who Is Eligible For Fresh Start?
- How to Apply For Fresh Start
The Fresh Start program, which was announced in April 2022, is designed to help borrowers pull their federal student loans out of collections. Here’s how the program can help you: 1. Get your loans back in good standing.Loans will be moved out of default, even if you’ve already used your one-time loan rehabilitation option. 2. Stop debt collections...
The Fresh Start program has no income criteria and you don’t have to pay a fee or send money to enroll in the program. You simply have to be in default—meaning you were at least 270 days behind—on one or more of the following loan types, prior to the Covid-19 payment pause (March 13, 2020): 1. William D. Ford Federal Direct Loan Program loans, incl...
The application process is still somewhat unclear, but the Department of Education says it will conduct extensive, proactive outreach to let eligible borrowers know when they can enroll in Fresh Start. You can expect to be contacted via email or regular mail. In the meantime, here are some tasks you can act on now.
Sep 6, 2023 · To support these borrowers, the U.S. Department of Education created the Fresh Start program. The program enables those with default student loans to regain “current” status and re-institutes their eligibility for income-driven repayment plans, other types of government-backed loans, and more.
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