Fresh Start Program Deadline for Federal Student Loan Default: What Borrowers Need to Know

Don’t miss the Fresh Start program deadline. Learn how to get out of federal student loan default in 2025 and restore your financial standing through this one-time opportunity.

What Is the Fresh Start Program for Student Loans?

The Fresh Start program is a temporary federal initiative designed to help borrowers in default on federal student loans return to good standing. Originally launched after the COVID-19 pandemic, this one-time opportunity gives borrowers a clean slate—without the usual barriers and penalties associated with default.

Fresh Start Program Deadline (2025 Update)

As of July 2025, the official deadline to enroll in the Fresh Start program is September 30, 2024.

If you haven’t acted yet, you may have already missed the deadline. However, you should still contact your loan servicer or visit studentaid.gov to confirm your options. Some provisions may still be available under other programs like income-driven repayment (IDR) or rehabilitation.

Who Is Eligible for the Fresh Start Program?

You qualify for Fresh Start if:

  • Your loans were in default as of March 13, 2025
  • You hold eligible federal student loans, including:
    • Direct Loans
    • FFEL Program Loans (held by the Department of Education)
    • Perkins Loans (held by the Department of Education)

Ineligible loans include privately held FFEL or Perkins loans not managed by the federal government unless consolidated into a Direct Loan.

Benefits of the Fresh Start Program

If you qualify and enroll by the deadline, the Fresh Start program offers:

  • Immediate removal of default status
  • Restoration of access to federal aid, including grants and loans
  • Credit repair — default status removed from your credit report
  • Protection from collections, wage garnishment, and tax refund seizure
  • Access to income-driven repayment plans
  • No application fees or costs

How to Enroll in the Fresh Start Program

Borrowers must contact their loan holder to opt in. Here’s how to do it:

Step 1: Verify Eligibility

Log in to studentaid.gov to view your loan status or call the Default Resolution Group at 1-800-621-3115.

Step 2: Request to Enroll

Tell your loan servicer you want to enroll in Fresh Start. You may be able to do this by phone or through your online loan portal.

Step 3: Choose a Repayment Plan

After your loan is returned to good standing, choose a repayment plan. Most borrowers benefit from income-driven repayment (IDR) options to keep payments affordable.

What Happens If You Miss the Fresh Start Deadline?

If you missed the September 30, 2024 deadline:

  • You lose access to Fresh Start’s default removal benefits
  • You remain in default, which affects your credit and eligibility for future aid
  • You may still pursue loan rehabilitation or consolidation as alternative ways to resolve the default

These options are more complex and can take longer, but they remain available through the Department of Education.

Important Tips for Borrowers in Default

  1. Act fast — Time-sensitive programs like Fresh Start are rare. If you’re still in default, contact your loan servicer immediately.
  2. Avoid student loan scams — The Fresh Start program is free. No legitimate service will charge you to enroll.
  3. Update your contact information — Make sure your loan servicer and StudentAid.gov have your current phone number and email.
  4. Explore all repayment options — Income-driven repayment plans can lower monthly payments to as low as $0 based on your income.

FAQs About Fresh Start and Student Loan Default

Q: Is the Fresh Start program still available in 2025?
A: The official enrollment deadline was September 30, 2024. If you missed it, other options like rehabilitation may still be available.

Q: Will Fresh Start remove the default from my credit report?
A: Yes, if you enrolled before the deadline, the default status should be removed from your credit record.

Q: Does Fresh Start forgive my loans?
A: No. Fresh Start restores your loans to good standing, but it does not cancel or forgive the balance.

Q: Can I get financial aid again after using Fresh Start?
A: Yes. Once your loans are out of default, you’re eligible for federal aid, including Pell Grants and new loans.

Final Thoughts

The Fresh Start program was a rare opportunity for millions of student loan borrowers to escape the burden of default with minimal effort and zero cost. If you were eligible but didn’t take action by September 30, 2024, it’s crucial to contact your loan servicer right away to explore your next best steps.

Useful Links:

Related Articles

  • How to Get Out of Student Loan Default
  • Student Loan Forgiveness Programs Explained
  • Income-Driven Repayment Plans: What to Know
  • Avoiding Student Loan Scams in 2025
  • Can You Refinance a Defaulted Loan?