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Fresh Start

Most borrowers who defaulted on their student loans before March 13, 2020 are eligible for the Department of Education’s (“ED’s”) “Fresh Start” initiative. Eligible borrowers who request to participate are eligible for the following benefits:

  1. We’ll transfer your loan to Nelnet for repayment servicing, and your loan will be removed from default and brought current.
  2. We’ll update any credit reporting information that we have previously reported.
  3. You’ll be eligible to enroll in an income-driven repayment plan.
  4. You’ll regain eligibility for federal student aid like loans and grants.
  5. You may have access to loan forgiveness programs that might have otherwise been unavailable because of your default status.
  6. You’ll regain access to short-term relief like deferments and forbearances, similar to before your loan defaulted.
  7. You’ll avoid default collection activities after the end of the collection pause, which can include things like credit reporting, wage garnishment, or offset of federal tax refunds.

To take advantage of this opportunity or for more information, simply contact us at 1-800-367-1589. This opportunity will remain available until one year following the end of the current student loan collection pause.

Note that if you have any other defaulted student loans held by ED or other guaranty agencies, you’ll need to contact those loan holders separately to opt-in to Fresh Start for those loans. If you have any outstanding loan discharge applications like for a disability, Borrower Defense to Repayment, False Certification, or Closed School we will process those applications first, and process your Fresh Start request as necessary once your discharge application has been resolved.