U.S. Department of Education Extends Fresh Start Program Deadline for Defaulted Student Loan Borrowers

The U.S. Department of Education has announced an extension of the deadline for its Fresh Start program, which aims to assist defaulted student loan borrowers. The new deadline is set to provide individuals with an opportunity to regain good standing on their loans and avoid the negative repercussions of delinquency and default.

New Deadline and Original Timeline

Initially, the Fresh Start program deadline was September 30, but due to an issue on their website, the U.S. Department of Education has decided to extend this deadline until Wednesday at 3 a.m.

While the application deadline has been extended, it’s important to note that the 12-month "on-ramp period" for borrowers will still conclude on September 30. This means that although borrowers have additional time to apply for the program, the grace period for certain benefits will not be extended.

Since the conclusion of the pandemic-era pause on federal student loan payments, the Education Department has taken measures to shield borrowers from severe consequences of missed payments, including collection efforts and negative credit reporting.

Those interested in applying for the Fresh Start program are encouraged to visit StudentAid.gov for more information and to complete their applications before the extended deadline. This announcement comes as a significant opportunity for borrowers seeking to improve their financial standing and regain control over their student loans.