Hey, y'all, this is a reminder for anyone that has student loans that they are defaulted on or in collections for:
Apply for Fresh Start NOW if you haven’t already done so. Like right now. Do it right this very second do not put it off any longer.
If you don’t know, applying for Fresh Start will move your loan status from “Default” to “Current,” you will no longer have to deal with collections calls! You won’t have your wages garnished or your tax refunds taken by the Education Department! The default gets removed from your credit and you become eligible for federal mortgage programs! You become eligible for Income Driven Repayment (IDR) programs that can reduce your monthly payment in a huge way (from $400/month to $50/month for me!) and you get IDR credit for the three years you were in default during the pandemic freeze!
It only has upsides!
I mean it, it can make a huge difference! You can even submit both Fresh Start and an IDR application at the same time. It takes literal seconds. I had my name legally changed and I’m still eligible! I clicked like 3 buttons, checked a couple boxes, and boom. I sent off the application August 22nd and I got the letter yesterday (Sept 20th), but that letter was dated Sept 1st and was only to inform me that my loan was no longer in default would be transferred to a new loan servicer by the end of the month. It took a week and a half to process.
I also became eligible and received a refund check for money taken from me during the starting stages of the pandemic.
The best time to do it is now. Period.
Do. It. Right. Now.