Stuck in default on your federal student loan? Advocates with NCLC’s Student Loan Borrower Assistance project explain what borrowers need to know about the new time-limited Fresh Start initiative to help borrowers get out of default.
Roughly 20% of the 43 million Americans holding federal student loans are in default. For many, getting out of default previously seemed overly complicated or had become impossible because they had already exhausted their limited options for removing their loans from default. However, right now there is good news for borrowers with defaulted loans who need a fresh start.