This program has ended as of October 2nd, 2024. Borrowers are no longer able to enroll in this plan.
The Department of Education created a temporary program designed to bring borrowers out of default and back into good standing as easily as possible. Normally borrowers need to meet very specific requirements and consolidate or participate in a 10 month long loan rehabilitation program, but Fresh Start was designed to easily bring people out of default quickly.
Who was eligible for Fresh Start?
You were eligible for Fresh Start if you had any of the following loan types:
- Defaulted Direct Loans
- Defaulted FFEL Loans
- Defaulted Perkins Loans held by the Dept. of Ed.
What were the benefits of Fresh Start?
If you enrolled in Fresh Start, you had access to the following benefits:
- The Dept. of Ed. stopped reporting your loan as defaulted, and you were brought back into good standing
- You had restored access to Income-Driven Repayment Plans so your monthly payments were affordable
- You had restored access to forgiveness programs like PSLF
- Collections stopped (no wage garnishment, no withholding tax refunds, no withholding of Social Security)
- You were eligible to take out new federal loans
- Collection calls were not made
How Do I enroll in Fresh Start?
This program has ended, borrowers are unable to enroll in it at this point. Borrowers in default can either consolidate to get out of default or enter loan rehabilitation. You can read more about both of these options here: https://bysavi.zendesk.com/hc/en-us/articles/115005092894-I-am-nearing-in-default-on-my-student-loans-What-are-my-options