June 2024 | Fresh Start Program for Defaulted Federal Student Loan Borrowers

[@krystleknott]

Thank you for this information.

[@quantumeye-tv4992]

I got a letter from the Fresh Start program today on August 16. I'm kind of on the fence about this because I can't pay back the loan. I don't have a job right now I live with my parents and I'm not getting any money., I'm not receiving any money right now. These people are going to expect me to pick a payment plan, what am I going to pay this back with ????

[@FSAOutreach]

Thank you for your question. Your payment on an income driven plan can be as low as $0. It is best to view your eligibility and options using our loan simulator - studentaid.gov/loan-simulator/. Your $0 payment would count as if you are are making a payment until your income status changes. Fresh Start allows for you to no longer be in default and to get an affordable payment plan, even if it is $0.

[@fredstennis1424]

This is going to be a great premiere. Looking forward to it.

[@PyatSounds]

Hello, so you are being extremely clear with your info and I really appreciate that, thank you! I think I know the answer to this question BUT, just for even more clarification…I ENROLLED in Fresh Start yesterday (doing this very last minute 😅), but have not received a response letter, email etc…and I gather it could take a month or 2…or longer til I hear back (I’m guessing, since I enrolled, it is now in the processing period)….so, should I wait to apply for an IDR Plan until I get some kind of ‘welcome letter’ from Fresh Start?

[@mscherry721]

Which is better Fresh start or public forgiveness? What’s the difference?

[@FSAOutreach]

Thank you for your question. Fresh Start is for borrowers to get out of default on their student loans. Benefits include then being eligible for Public Loan Forgiveness. Loans in default are not eligible for PSLF.

[@SunfoodWarrior]

I took out student loan in 1976 at age 17.. Payment for the loan was requested while I was still a full time student in 1978. Student loan defaulted not me.. My balance is about $4200.. It's too old to report. and I am 65, and I don't believe subject to any collections.. Most important, the terms of the loan were breached and I was forced out of attending college.. How does this program benefit me?

[@FSAOutreach]

Thank you for your question. This program will only benefit you, if you loan is currently in default. It is best to check the status of your loans first. If it is not in default, this program is not for you. If it is, there are multiple benefits you can read about here: studentaid.gov/announcements-events/default-fresh-start

[@juliewin3320]

With the Disability Forgiveness are you never allowed to go to school again? I get under 900.00$ a month on disability and have $7,000$ in loans I was paying on until COVID freeze and my loan servicer disappeared. I have all Federal Loans nothing private so I'm not sure how to proceed. I don't know who to ask or where to ask. I did call the 1-800 federal loan number and she told me to do Fresh Start because I would be responsible for the loan double amount if I tried to get disability forgiveness and decided to even take a community college certification program. I have been disabled for 11 years. I am so lost and confused. I want to go back to school even though I cannot do what I originally went to school for. Just to get out of the house and be amongst the living. It feels like I'm sitting at home waiting to die. I never leave my front door. Someone please point me in the right direction for information, please.

[@marydickson6132]

Where do I go to find out what type of loans I have and the amounts. I graduated in 2010

[@Pocasso2024]

So once i enroll in fresh start all my late payment and default will be removed from my credit report? I'm trying to build my credit and these student loans from 2009-2013 that i never paid on are the only thing showing on my report.

[@FSAOutreach]

Fresh Start stops collections and changes credit reporting. Starting in December 2022, we began reporting defaulted loans held by ED as “current” rather than “in collections” to credit reporting agencies.

[@AmandaGonzalez-p7v]

🎉

[@Pocasso2024]

@AmandaGonzalez-p7v Did you sign up already? When I signed up everything got taken off my report. They told me I have to wait 90 days before it starts back reporting. Did you have to go thru this as well?

[@scoop5867]

If a trade school is now closed, that I attended back in 1993, who was in breach of their contract, for job interviews that made them responsible for paying back loan. It was in the contract. But Im not sure if I have paperwork/ contract anymore. Am I S.O.L. or is there any help I can get?

[@scoop5867]

Ok so if i signed up for the pause of payments for a loan from 1993 during covid, I won't be eligible for fresh start? I can't remember if it was feell program

[@nori6090]

So I took out 6k in student loans in 2013 and haven't paid any of it off. I was wondering if I could still do the fresh start program and get my student loan back in good standing? Or am I just SOL?

[@FSAOutreach]

Sign into your StudentAid.gov account to confirm your loans are in default. If so, Yes this Fresh Start program is to help get your loans back in good standing as long as you apply by the deadline.

[@GokuIRL]

When's the deadline?

[@FSAOutreach]

@@GokuIRL September 30, 2024

[@QuickBitesVending]

Thank you so much for the informative video! It really helped with a couple of questions I had. I just received the letter today regarding the Fresh Start Program. Last year I applied for the Borrowers Defense and was wondering if I apply for the Fresh Start program would that affect my Borrowers Defense application in any way? Thank you in advance!!

[@scoop5867]

Ok but I don't want to pay back any of it . Trade school promised I didnt have to pay, because they sent me to an unhireable interview

[@michaelangeles1477]

Appreciate the work you put in for this video. Thank you. Should one who has had their loans forgiven, apply for Fresh Start if they still need to pay the remaining interest of the forgiven loans?

[@FSAOutreach]

You're welcome! Fresh Start is only for borrowers with defaulted loans. Therefore, one would not qualify if loans were forgiven.

[@411Adidas]

​@@FSAOutreach 1. why would a defaulted loan not be eligible for forgiveness unless its under the fresh start program? 2. My loan says its already in collections, so why would I start the process over with fresh start and have another seven years of bad credit? Lastly myeddebt.ed.gov website hasn't worked all week. I can not get onto your website to apply even if I wanted too.

[@tommiljs]

How long is the processing time for the Fresh Start Program?

[@feliciawhite5008]

Great question

[@FSAOutreach]

It takes 4-6 weeks for most people be transferred to their new non-default servicer. You’ll get communications about your transfer by postal mail.

[@tommwangi5496]

What can i do if i can't remember my username id and password please

[@FSAOutreach]

You can use the forgot username or password link on the sign-in page to assist you. studentaid.gov/fsa-id/sign-in/landing

[@youngteppa2354]

i need help plz help me

[@ELCLAVE300]

Cant I file bankruptcy for my student loans?

[@mattdenney8437]

Unfortunately our wonderful govt has made it impossible to file bankruptcy on state/federal taxes & student loans.

[@maryfelix1546]

true

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I was going to post a question but scrolling through the comments I noticed that not a single question has been answered so far.

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Did you not see the FSA logo and reply that you can click on below each comment? There are replies on nearly all comments.

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[@jessefaircloth8321]

Why does this feel like a set up? Just the way she speaks makes me feel like the family dog that is being told "Not this time" while the family leaves for the beach. How is this such a big program but there is such low coverage about the programmed 9.2k views?.

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