The ‘Fresh Start’ program by President Joe Biden has placed $34 billion worth of student loan accounts into “current” status.
The New York Federal Reserve revealed their Q4 2022 Household Debt and Credit report that the initiative has resulted in less than 1% of all student debt in default or delinquency.
New York Federal Reserve: ‘Fresh Start’ program has been a success. (Photo: Forbes)
See: Biden: Student Loan Program and Its Current Status
More Details on the Fresh Start Program
The Fresh Start program will run no later than June 30, 2023, in which eligible borrowers can receive the following benefits:
- The ability to apply for federal loans such as federal student aid and mortgages
- Relief from wage garnishments, collection calls, and Social Security and tax refund withholding
- A chance to rehabilitate student loans at a later date
- Access to student loan forgiveness programs, income-driven repayment (IDR) plans, deferment, and forbearance
- Removal of the account default in the credit report
Note that you must choose to participate in the program during the Fresh Start period. You can do this by making a repayment arrangement; otherwise, you might lose access to these benefits. Your loan must also be eligible for the program, including defaulted Federal Family Education Loans (FFEL), Direct Loans, and Perkins Loans held by the Department of Education.
Find Out: Student Debt Forgiveness: Biden’s $34 Billion “Fresh Start” Plan Benefits Borrowers
More: Student Loan Relief Update 2023: Is One-time Payment Adjustment Enough?
