Paying for an education is never easy, and many people struggle to pay back their student loans. But even if you have failed to pay your loans in the past, it’s not too late to get back on track!
Fresh Start is a government program designed to help borrowers who have defaulted on their student loans regain control of their financial situation. Managed by the U.S. Department of Education, Fresh Start may allow you to get out of default and start a repayment plan you can afford. But you should act soon, as the program ends September 30, 2024.
Enrolling in Fresh Start will put you on the right track–you won’t get called by collections agencies, the record of your default will be removed from your credit report and you will be put back in “repayment” status. You will also be able to apply for new federal student aid if you qualify.
When you join Fresh Start, you will have to resume paying back your student loans. But you may have a chance to join an affordable “income driven repayment plan.” You will never pay more than 10–20% of your discretionary income.
Half of borrowers on Fresh Start are paying $0 a month, and 60% of Fresh Start borrowers are paying less than $50 a month!
You can get your estimated monthly payment by using Loan Simulator (select “I Want to Find the Best Student Loan Repayment Strategy”): studentaid.gov/loan-simulator/.
With the deadline approaching, it’s crucial to follow these steps:
CONTACT YOUR LOAN HOLDER
To use Fresh Start and leave default behind, you need to contact your loan holder. If your loans are held by the Department of Education, you can enroll through one of these methods in under 10 minutes:
- Online: Visit myeddebt.ed.gov and log in to your account.
- Phone: Call 1-800-621-3115 (TTY 1-877-825-9923 for the hearing impaired).
- Mail: Write to P.O. Box 5609, Greenville, TX 75403, including necessary details and a statement requesting Fresh Start enrollment.
If your loans are held by a guaranty agency, you’ll need to call that agency. Find contact information for guaranty agencies here: studentaid.gov/manage-loans/default#guaranty-agencies.
If you don’t know who holds your loans, call 1-800-621-3115 (TTY 1-877-825-9923).
IF YOU PLAN TO GO BACK TO SCHOOL
If you’re re-enrolling in school, using Fresh Start means you can get new student financial aid again. Fill out your FAFSA application at studentaid.gov/h/apply-for-aid/fafsa today.
Lenders will need proof you’re back on track. Once you’re enrolled in Fresh Start, contact the Default Resolution Group at myeddebt.ed.gov/borrower/#/contactus.
LEARN MORE
You can read more about the Fresh Start program on the government’s website here: studentaid.gov/announcements-events/default-fresh-start.
SHARE WITH OTHERS
Share this URL with your friends and family who could benefit from the Fresh Start program. Help spread the word about Fresh Start so others may leave default behind too.