Federal protections end for student loan repayment; what to know if you owe
PHOENIX (AZFamily) — If you owe student loans and have been pushing back repayment, time is up.
The U.S. Department of Education’s Fresh Start program is slated to end on Sept. 30. That means beginning on Oct. 1, loan servicers will be able to report student loan payment delinquency to credit reporting agencies.
How much do I owe? Calculate student loan repayment options with loan simulator
Fresh Start was a temporary program from the Department of Education that offered special benefits for borrowers with defaulted federal student loans. It extended the following protections started during the COVID-19 pandemic to give borrowers more time to catch up on payments.
- Tax refunds (and child tax credits) were not withheld.
- Wages were not garnished.
- Social Security payments (including disability benefits) were withheld.
- Collection calls were not made.
Accrual of interest was paused during the pandemic, but it was restarted on Sept. 1, 2023, when COVID protections ended and Fresh Start began.
If you go into default after Fresh Start ends, you loan’s original date of delinquency will be provided to credit reporting agencies, which means the program won’t reset how long credit reporting agencies report your loan being delinquent or in default.
Resources to repay student loans
How To Restart Your Student Loan Payments
How To Repay Student Loans For The First Time
Who Is My Student Loan Servicer?
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