If you have student loan debt, you’re not alone. Fortunately, several student loan forgiveness programs are available to you. Let’s discuss the Fresh
If you have student loan debt, you’re not alone. Fortunately, several student loan forgiveness programs are available to you. Let’s discuss the Fresh Start Program. Here’s what you need to know.
What is the Fresh Start Program?
The Fresh Start Program, according to Federal Student Aid, is a temporary one-time program for borrowers with defaulted student loans. This program offers many benefits, which we’ll get into later.
This program is offered by the U.S. Department of Education (E.D.) and requires you to apply to enroll in the program.
What are the Benefits of the Fresh Start Program?
There are several benefits to enrolling in the Fresh Start Program. According to Federal Student Aid, this program allows you to:
- Stopped collections
- Credit report changes
- Access to federal student aid
- Apply for other government loans
- Ability to rehabilitate loans
- Access to other student loan forgiveness programs
- Access to short-term relief, such as forbearance
These benefits will last at least through September 2024.
Do I Qualify for the Fresh Start Program?
According to Nerd Wallet, “Fresh Start is available only to borrowers with federal student loans including direct loans, government-held Perkins loans, government-held FFELP loans, and privately held FFELP loans.”
Nerd Wallet continues, “Borrowers must have also defaulted on the loans before forbearance began on March 13, 2020.”
How Do I Enroll in the Fresh Start Program?
If you want to enroll in the Fresh Start Program, you’ll have to call your loan holder.
However, if your loan is from the U.S. Department of Education, you can contact them online, by phone, or by mail.
It takes about 4-6 weeks to get mail indicating you’re part of the program.
What If I Don’t Know Who Holds My Loan?
If you don’t know who holds your loans, call 1-800-621-3115. If you’re deaf or hard of hearing, you may call 1-877-825-9923.
What Loans Are Not Eligible?
According to Federal Student Aid, the following loans are not eligible:
- Defaulted Health Education Assistance Loan Program loans
- FFEL Program loans that default after the end of the COVID-19 student loan payment pause
- Direct Loans that default after the end of the COVID-19 student loan payment pause
- Student loans remaining with the U.S. Department of Justice for ongoing litigation
- Defaulted Perkins Loans held by schools
If you need student loan forgiveness, many resources and programs exist for you.
First of all, you check out our Student Loan Forgiveness Workshop. This workshop is designed especially for Federal student loan borrowers like you, helping you navigate the path to forgiveness with your Department of Education loans.
You can also check out our other blog posts:
- 12-month “on-ramp” period FAQs
- FAQs for the SAVE Plan (Student Loan Repayment)
- Will Student Loans Be Forgiven?
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