Until tomorrow, borrowers with defaulted loans have one more chance to get back into good standing.
Your loans are considered in default when you’ve missed payments for 270 days or more.
Here’s how it works.
Readmore:Your Student Loans Under Harris vs. Trump.
Experts Weigh In
What is the Fresh Start program?
Your loans are considered in default status if you missed more than 270 days of payments on them.
Fresh Start is temporarily replacing rehabilitation – and it offers several additional benefits.
But you might request an income-driven plan on the Federal Student Aid website.
Can Fresh Start help me get student loan forgiveness?
The other IDR plans will forgive any remaining balance after 20 or 25 years of payments.
(Note: Forgiveness throughSAVE is currently on hold, pending final resolution from federal courts.)
“They also get credit for qualifying payments made prior to going into default.”
According to the Department of Education, 80% of Fresh Start borrowers move to an income-driven repayment plan.
How can I tell if my loans are in default?
Any federal student loan borrower can qualify for Fresh Start, but not all loan types are eligible.
This will get your loans out of default if you agree to get on an income-driven repayment plan.
You should consolidate quickly.
it’s possible for you to learn more about loan rehabilitation atStudentAid.gov.
Read more:Your Student Loans Under Harris vs. Trump.
Here’s What the Experts Predict
