BUFFALO, N.Y. — If you've defaulted on your student federal loans, there is a way to get a 'fresh start' to gain access to other aid and loans.
The US Department of Education's Fresh Start program gives special benefits to borrowers that have defaulted on their federal student loans.
Fresh Start automatically restores access to federal aid, loans and grants, but you'll need sign up before September 30, 2024 to be able to claim the benefits long-term and help to get out of default.
If your defaulted loans are held by the US Department of Education, you can contact one of three ways to enroll into the Fresh Start Program:
- Online—Go to myeddebt.ed.gov and log in to your account
- Phone—Call us at 1-800-621-3115 (If you are deaf or hard of hearing, the TTY number is 1-877-825-9923).
- Mail—Write to P.O. Box 5609, Greenville, TX 75403. In your letter, include your name, social security number, date of birth, current mailing address, and the following: “I would like to use Fresh Start to bring my loans back into good standing.” Letters must be postmarked before Oct. 1, 2024.
If your loan is held by a guaranty agency, you will need to call them. Click to find contact information for guaranty agencies.
These loans are eligible for the Fresh Start program:
- Defaulted William D. Ford Federal Direct Loan (Direct Loan) Program loans
- Defaulted Federal Family Education Loan (FFEL) Program loans
- Defaulted Perkins Loans held by ED
Once you're enrolled in the Fresh Start program the US Department of Education will:
- Transfer your defaulted loans from the Default Resolution Group (or from a guaranty agency) to a loan servicer.
- Return your defaulted loans to “in repayment” status.
- Remove the record of your default from your credit report
- Receive communication from your new loan servicer once your loans have been transferred. Within a week or so after, you’ll be able to apply for an IDR plan.
Once you've enrolled and are out of default, you will automatically placed on a standard repayment plan, or you can n income-driven repayment (IDR) plan.
For more information check out the US Department of Education's website.
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