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Fresh start program

Exciting News: Unlock a Fresh Start and Get Out of Default with Ease!

Are you tired of feeling trapped in the suffocating grip of defaulted federal student loans? We have incredible news that will revolutionize your financial future and educational aspirations. Get ready to embark on an exhilarating journey with the Fresh Start Initiative for Eligible Federal Student Loan Borrowers, a groundbreaking program offered by the prestigious U.S. Department of Education (ED). This one-time, temporary program is designed to provide special benefits to those struggling with defaulted federal student loans, offering a fresh start and a chance to reclaim their academic dreams with gusto!


But wait, there’s more! Signing up for Fresh Start is absolutely free! That’s right, folks. No hidden fees or secret charges. It’s time to liberate yourself from the shackles of default and embrace the unlimited possibilities that lie ahead. So, let’s dive deep into the thrilling details and discover how this transformative program can reshape your educational journey like never before.

Now, you might be wondering, “What magical benefits does Fresh Start offer me automatically?” Buckle up, my friends, because here’s what awaits you on this exhilarating ride:

  1. Restored Access to Federal Student Aid: Fresh Start automatically restores your eligibility for federal student aid, including loans and grants. It’s like a key that unlocks the door to financial assistance, allowing you to pursue your educational goals with renewed vigor.

  2. Liberating Relief from Collections: Remember those sleepless nights haunted by relentless collection calls? Well, bid them farewell! Fresh Start continues the collections relief you’ve experienced during the COVID-19 payment pause. No more withheld tax refunds, child tax credits, or Social Security payments. Say hello to financial freedom and peace of mind.


3. Eligibility for Other Government Loans: Fresh Start wipes away your default status from the government credit reporting system, known as the Credit Alert Verification Reporting System (CAIVRS). This paves the way for a brighter future, as many lenders consider borrowers marked as “in default” ineligible for government-backed loans, such as mortgages. With Fresh Start, you have the chance to turn your dreams into reality and improve your financial prospects. 4. Second Chance to Rehabilitate Loans: Usually, borrowers are limited to rehabilitating their loans just once. But guess what? Fresh Start breaks free from these constraints! Whether you’ve never rehabilitated your loan before or even if you’ve already done it during the COVID-19 student loan payment pause, Fresh Start gives you another shot at rebuilding your financial standing. It’s a golden opportunity for redemption! 5. Credit Reporting Transformation: Brace yourselves for a credit score makeover! Starting from December 2022, ED has taken a bold step by reporting defaulted loans held by them as “current” instead of “in collections” to credit reporting agencies. If your loans are held by a guaranty agency, you’ll enjoy this mind-blowing benefit starting in February 2023. This change can have a profound impact on your credit score, opening doors to endless possibilities.

By now, you must be eager to claim the full benefits of Fresh Start. But how, you ask? Fear not, for we have made it incredibly simple for you. To embark on this thrilling journey and bid adieu to default, all you need to do is contact your loan holder. Let’s explore the three convenient methods available to you:

  1. Online: Embrace the power of technology by visiting their user-friendly website at With just a few clicks and your login credentials, you’ll be on your way to an exciting Fresh Start.

  2. Phone: Need that personal touch? Dial their dedicated helpline at 1-800-621-3115. Oh, and for the deaf or hard of hearing, we’ve got you covered with their TTY number: 1-877-825-9923. Before you make the call, here’s a handy tip: retrieve your income information from your most recent federal tax return (line 11 of IRS Form 1040) for a smoother conversation. However, if you can’t find it or haven’t filed taxes, don’t fret! You should still reach out to us because we’re here to assist you every step of the way. Just email us at or submit the contact form below.

  1. Mail: For those who prefer a more traditional approach, grab a pen and paper and jot down your intentions. Write a letter addressed to P.O. Box 5609, Greenville, TX 75403. Make sure to include vital details such as your name, social security number, date of birth, and a simple declaration: “I would like to use Fresh Start to bring my loans back into good standing.” With your letter sent, you’ve taken a significant step towards reclaiming your financial freedom.

Now, let’s fast forward to the next chapter of your journey. Once you utilize Fresh Start to get out of default, prepare to be amazed by the incredible benefits that await you:

  1. Enroll in an Affordable Repayment Plan: As you emerge from default, you will have the opportunity to choose a payment plan that suits your financial circumstances. An astonishing 80% of Fresh Start participants opt for an income-driven repayment (IDR) plan. Brace yourself for a financial revolution! With an IDR plan, your monthly payment is tailored to your income, ensuring that you never pay more than 10-20% of what you earn. Picture this: 50% of Fresh Start borrowers are paying a mere $0 each month, and a staggering 60% enjoy payments of less than $50. It’s like hitting the jackpot of affordability!

  2. Estimate Your Monthly Payment: Curious about what your monthly payment might look like? We’ve got you covered with their Loan Simulator. This powerful tool allows you to get a sneak peek into your estimated monthly payment. It’s like having a crystal ball that reveals your financial future!

Now, let’s pause for a moment and reflect on the automatic benefits that Fresh Start grants you. These benefits are yours to enjoy temporarily, but by utilizing Fresh Start to get out of default, you secure them for the long term. Otherwise, they’ll bid you farewell one year after the payment pause ends. Let’s delve into the treasures that await:

  1. Access to Federal Student Aid: Say goodbye to academic limitations! Once you’re deemed eligible for Fresh Start, the doors swing wide open, granting you access to federal student aid once again. Whether you dream of completing an unfinished degree or pursuing further education, this newfound access can make your aspirations a reality. It’s time to dust off those textbooks and embark on a transformative educational journey!

  2. Stopped Collections: Remember the nightmares induced by relentless collection calls? Fresh Start to the rescue! The collections relief you’ve experienced during the COVID-19 payment pause continues to shine brightly during your Fresh Start adventure. Rest assured, tax refunds and child tax credits will no longer be withheld, wages won’t be garnished, and even your Social Security payments, including disability benefits, will be free from interference. Additionally, you can bid farewell to those unwelcome collection calls that disrupt your peace. It’s a breath of fresh air!

3. Eligibility for Other Government Loans: Fresh Start is not just about reclaiming your defaulted student loans; it’s about reclaiming your financial freedom altogether. By erasing your default status from the government credit reporting system (CAIVRS), Fresh Start unlocks exciting possibilities. Many lenders, especially those dealing with government-backed loans such as mortgages, reject applicants labeled as “in default” in the government credit reporting system. However, with the powerful Fresh Start benefit, you become eligible for a range of government-backed loans. Imagine the doors of opportunity swinging open as you regain access to loans that were once out of reach. Whether it’s a dream home or an entrepreneurial venture, Fresh Start paves the way for a brighter financial future.

4. Restored Ability to Rehabilitate Loans: Traditionally, borrowers were limited to rehabilitating their loans only once. However, Fresh Start breaks the mold. Suppose you’ve never had the chance to rehabilitate your loan before. You utilize Fresh Start to pull your loan out of default, but unfortunately, it falls back into default down the road. In this case, you still have the option to rehabilitate your loan, giving you a second chance at rebuilding your financial standing. The same applies if you rehabilitated your loans during the COVID-19 student loan payment pause. Fresh Start ensures that your past rehabilitation efforts won’t count against you. It’s a safety net that allows you to bounce back even stronger.

5. Credit Reporting Changes: As of December 2022, a remarkable change took place. Defaulted loans held by the U.S. Department of Education are now reported as “current” rather than “in collections” to credit reporting agencies. If your loans are held by a guaranty agency, you’ll begin to experience this remarkable benefit starting in February 2023. Imagine the positive impact on your credit score as your default record is replaced with a current status. Fresh Start not only removes the shackles of default but also helps restore your creditworthiness, opening doors to financial opportunities you may have thought were out of reach.

But wait, there’s more! By using Fresh Start to get out of default, you gain access to an array of additional benefits that will enhance your financial journey:

  1. Access to Income-Driven Repayment (IDR) Plans: One of the most remarkable aspects of Fresh Start is the opportunity to enroll in income-driven repayment plans. Bid farewell to sleepless nights fretting over exorbitant monthly payments. With an IDR plan, your monthly payment amount is based on your income and family size, ensuring that it remains affordable. Say goodbye to financial stress and hello to a repayment plan tailored to your unique circumstances.

  2. Access to Student Loan Forgiveness Programs: Defaulted loans typically disqualify borrowers from the various student loan forgiveness programs available. However, by seizing the opportunity offered by Fresh Start, you can escape the clutches of default and regain eligibility for these programs.

Imagine the weight lifted off your shoulders as the possibility of student loan forgiveness enters the picture. For those working in public service, the coveted Public Service Loan Forgiveness program becomes a tangible goal. Fresh Start is your key to unlocking a future free from the burden of student loans.

3. Access to Short-term Relief (Forbearance and Deferment): Life is unpredictable, and unexpected circumstances can throw your financial plans off track. When you were in default, access to short-term relief options like forbearance and deferment was out of reach. However, with Fresh Start, you regain the ability to request these forms of relief when you need them. Whether it’s a temporary financial setback or a significant life event, knowing that you have the flexibility to pause or adjust your payments provides invaluable peace of mind.

Now that you understand the incredible benefits awaiting you, it’s essential

to consider which loans are eligible for Fresh Start:

Eligible Loans:

  • Defaulted William D. Ford Federal Direct Loan (Direct Loan) Program loans

  • Defaulted Federal Family Education Loan (FFEL) Program loans

  • Defaulted Perkins Loans held by the U.S. Department of Education

  • Defaulted Perkins Loans held by schools

  • Defaulted Health

Education Assistance Loan Program loans

Not Eligible Loans:

  • Student loans remaining with the U.S. Department of Justice for ongoing litigation

  • Direct Loans that default after the end of the COVID-19 student loan payment pause

  • FFEL Program loans that default after the end of the COVID-19 student loan payment pause


It’s important to note that FFEL Program loans that default during the COVID-19 payment pause will already be taken out of default due to the expansion of COVID-19 relief measures. Therefore, these loans are not eligible for Fresh Start.

Fresh Start is a game-changing program that offers a lifeline to borrowers with defaulted federal student loans. It presents a unique opportunity to break free from the burdens of default, restore financial stability, and regain control of your educational and financial future. By taking advantage of Fresh Start, you not only benefit from immediate relief but also gain access to a range of long-term advantages, including restored eligibility for government-backed loans, improved credit standing, and enrollment in income-driven repayment plans and loan forgiveness programs.

Don’t let default hold you back any longer. Act now and reclaim your financial freedom. Contact your loan holder today or visit the U.S. Department of Education’s website to learn more about the Fresh Start program and the steps you need to take to get out of default. Remember, the path to a fresh start begins with a single step, and that step could transform your life. Embrace the opportunity before you and pave the way for a brighter, more prosperous future.