Fresh Start Initiative for Defaulted Loan Borrowers

Defaulted student loan borrowers may be eligible to regain financial aid eligibility through the U.S. Department of Education (ED) “Fresh Start” initiative. Fresh Start helps eligible borrowers in default by restoring Title IV Federal student aid eligibility if their loans were in default prior to the student loan repayment pause that began on March 13, 2020. You can find more information about the Fresh Start Initiative and determine if your loans are eligible on the Fresh Start webpage.

Eligible Loans:
Federal Direct Loan Program
Defaulted Federal Family Education Loan (FFEL) Program loans
Defaulted Perkins Loans held by the Department of Education

Ineligible Loans:
Defaulted Perkins Loans held by schools
Defaulted Health Education Assistance Loan Program loans
Student loans remaining with the U.S. Department of Justice for ongoing litigation
Direct Loans that default after the end of the COVID-19 student loan payment pause
FFEL Program loans that default after the end of the COVID-19 student loan payment pause

For students who are eligible for the Fresh Start initiative, please contact Texas One Stop for assistance.

* The Fresh Start initiative only helps students with eligible loans regain eligibility from a default status. Students must still meet other Title IV aid eligibility (e.g., maintaining satisfactory academic progress, not owing an overpayment on Title IV grants, etc.) to receive financial aid.