What Is Fresh Start?

The Fresh Start program, announced in April 2022, is a one-time temporary initiative designed to help federal borrowers with defaulted student loans. This program offers a wide range of benefits to assist borrowers in getting back on track.

Who Qualifies for Fresh Start?

To qualify for the Fresh Start program, you must have defaulted federal student loans when the payment pause began in March 2020. Even if you have rehabilitated your loans since then, you can still benefit from the program.

How to Get Out of Loan Default With Fresh Start

While some benefits of the Fresh Start program are automatic, enrolling in the program ensures you enjoy these benefits permanently. Here are the steps to take:

1. Apply for the Program

You can apply for the Fresh Start program in three ways:

• Online: Log in to your online account at myeddebt.ed.gov.
• Phone: Call the Education Department at 800-621-3115 (877-825-9923 TTY).
• Mail: Write to P.O. Box 5609, Greenville, TX 75403, and include your name, Social Security number, date of birth, and the statement: “I would like to use Fresh Start to bring my loans back into good standing.”

2. Enroll in a Repayment Plan

Once you are out of default, choose a repayment plan. Many borrowers opt for income-driven repayment plans, which can reduce monthly payments significantly.

3. Make On-Time Payments

Set up automatic payments to ensure you make timely payments. This will help you avoid late fees and develop a habit of regular payments.

Should You Apply for the Fresh Start Program?

If you defaulted on your federal student loans before the payment pause began in March 2020, it’s advisable to enroll in the Fresh Start program. The benefits are temporary if you don’t enroll, and you may face collection attempts and further credit damage once the temporary features expire.

Monitor Your Credit to Track Your Progress

Regularly check your credit score and report to see how your student loans are being reported. Monitoring your credit can help you track your progress and identify areas for improvement.

Contact O1ne Mortgage for Your Mortgage Needs

At O1ne Mortgage, we understand the importance of financial stability. If you need assistance with mortgage services, call us at 213-732-3074. Our team of experts is here to help you navigate your financial journey.