The Fresh Start program is a government initiative that helps federal student loan borrowers who have defaulted on their loans. The program offers a number of benefits, including:
- Removal of default status: The Fresh Start program will remove the default status from your credit report. This will make it easier for you to qualify for loans, credit cards, and other financial products.
- Access to income-driven repayment plans: Income-driven repayment plans allow you to make monthly payments that are based on your income and family size. This can make your student loans more affordable.
- Eligibility for Public Service Loan Forgiveness: Public Service Loan Forgiveness (PSLF) is a program that forgives the remaining balance of your student loans after you have made 120 qualifying payments while working full-time for a public service organization.
Who is eligible for the Fresh Start program?
To be eligible for the Fresh Start program, you must meet the following criteria:
- You must have defaulted on your federal student loans before January 31, 2023.
- You must not have already consolidated your loans.
- You must not have already rehabilitated your loans.
How to apply for the Fresh Start program
To apply for the Fresh Start program, you must contact the Default Resolution Group at 1-800-621-3115. You can also apply online at StudentAid.gov.
What are the benefits of the Fresh Start program?
The Fresh Start program offers a number of benefits, including:
- Improved credit score: Removing the default status from your credit report will improve your credit score. This will make it easier for you to qualify for loans, credit cards, and other financial products.
- Lower monthly payments: Income-driven repayment plans can lower your monthly student loan payments. This can make your student loans more affordable.
- Eligibility for PSLF: PSLF is a program that forgives the remaining balance of your student loans after you have made 120 qualifying payments while working full-time for a public service organization.
What are the drawbacks of the Fresh Start program?
There are a few drawbacks to the Fresh Start program, including:
- You may have to pay a fee: You may have to pay a fee to apply for the Fresh Start program.
- You may have to make higher monthly payments: Income-driven repayment plans can sometimes result in higher monthly payments than you would have under a standard repayment plan.
- You may not be eligible for PSLF: PSLF is only available to borrowers who work full-time for a public service organization.
Is the Fresh Start program right for me?
The Fresh Start program may be right for you if you have defaulted on your federal student loans and are struggling to repay them. The program can help you improve your credit score, lower your monthly payments, and become eligible for PSLF.
How can I learn more about the Fresh Start program?
You can learn more about the Fresh Start program by visiting the StudentAid.gov website or by calling the Default Resolution Group at 1-800-621-3115.
Additional resources
Disclaimer
The information provided in this article is for general informational purposes only and should not be construed as financial advice. Please consult with a qualified financial advisor before making any decisions about your student loans.
What is the IRS Fresh Start Program
FAQ
How long does it take for fresh start program to be approved?
What happens after you enroll in fresh start transfer?
How long does fresh start last?
What is the Fresh Start program?
The Fresh Start Program was designed to simplify paying taxes by streamlining procedures and offering payment plans. Here are a few benefits of the program: Who qualifies? Read more: we researched free tax software and put together a list of the best options here You must have filed all required tax returns for the past three years.
What is fresh start & how does it work?
Fresh Start is a student loan relief program that aims to help borrowers with defaulted federal student loans. The program is designed to restore roughly 7.5 million borrowers to good standing,
What is the Fresh Start initiative?
Formerly known as the Fresh Start Program, the Fresh Start Initiative gives you different options to get a handle on past-due tax debt. It’s not a single program to help taxpayers get relief but moreover a set of various resolution options available through the IRS for resolving back tax debt issues.
How does the IRS Fresh Start program work?
There are four different options associated with the IRS Fresh Start Program. The one that’s right for you depends on the specific circumstances of your case. 1. Installment agreement Once approved, you’ll make affordable monthly payments to the IRS until taxes are paid in full. The IRS will continue to charge interest on the amount owed.