topic Re: Was anyone here eligible for Fresh Start? How did you benefit? in Student Loans

Was anyone here eligible for Fresh Start? How did you benefit?

Blender — Wed, 12 Apr 2023 21:36:37 GMT

I won my appeal and was approved for a refund which should make me eligible for Fresh Start. I know this section isn't too busy, but I'dlike to hear success stories, if any. I'm impatiently waiting for my check to arrive to kick start bringing it out of default

Re: Was anyone here eligible for Fresh Start? How did you benefit?

donkort — Thu, 13 Apr 2023 13:32:51 GMT

I wasn't eligible.

But it's certainly "worth it," since it brings you out of default, point blank. Being in default on student loans is worse than being in default on most anything---except maybe child support.

Re: Was anyone here eligible for Fresh Start? How did you benefit?

Blender — Thu, 13 Apr 2023 22:14:46 GMT

@donkort wrote:
I wasn't eligible.

But it's certainly "worth it," since it brings you out of default, point blank. Being in default on student loans is worse than being in default on most anything---except maybe child support.

My scores have been stagnant for the years I've taken interest in credit. So I'm really hoping for a bump here bc I truly believe what you said. I don't think 'they matter less as they age' applies to them.

Re: Was anyone here eligible for Fresh Start? How did you benefit?

kcos194 — Fri, 21 Apr 2023 16:23:54 GMT

I rehabbed via fresh start back in September, the whole process was pretty easy and took about 20 days or so from when I got the paperwork in the mail. I wrote about it on another site, but here's the gist of how it went down:

- I called the default resolution group (DRG) at the Department of Ed and said I wanted to rehab my 2 loans out of default using the fresh start program. You probably know this, but outside of fresh start it would take 9 on time payments to remove the default status, and these weren't low dollar amount payments.

- EdDept sent me paperwork to fill out listing my monthly expenses and I "agreed" to rehab with the larger payment. I use agreed in quotes because that is the official process, but once you send it back, that payment agreement is no longer adhered to.

- My loans were then sent to a non-default servicer, Nelnet in my case, and were added to my other 6 loans currently under the pandemic pause with them. The interest rates and balances were all the same.

If forgiveness goes through, these 2 that were in default will be paid off immediately as they're my highest rates, but if not they're just rolled into my new payment with Nelnet once the pause ends. The defaults were removed from my reports and the loans were added to my currently open acccounts within a month from them being added at Nelnet. Late payments were wiped out, just the on time payments from October to now are on them, but the dates they were opened are the same, which keeps my age of oldest account info. It resulted in about a 20-30 point bump for me at that time.

Hope this helps, happy to answer any other questions you might have, and good luck!

Re: Was anyone here eligible for Fresh Start? How did you benefit?

Blender — Sat, 22 Apr 2023 20:13:51 GMT

@kcos194 wrote:
I rehabbed via fresh start back in September, the whole process was pretty easy and took about 20 days or so from when I got the paperwork in the mail. I wrote about it on another site, but here's the gist of how it went down:

- I called the default resolution group (DRG) at the Department of Ed and said I wanted to rehab my 2 loans out of default using the fresh start program. You probably know this, but outside of fresh start it would take 9 on time payments to remove the default status, and these weren't low dollar amount payments.
- EdDept sent me paperwork to fill out listing my monthly expenses and I "agreed" to rehab with the larger payment. I use agreed in quotes because that is the official process, but once you send it back, that payment agreement is no longer adhered to.
- My loans were then sent to a non-default servicer, Nelnet in my case, and were added to my other 6 loans currently under the pandemic pause with them. The interest rates and balances were all the same.

If forgiveness goes through, these 2 that were in default will be paid off immediately as they're my highest rates, but if not they're just rolled into my new payment with Nelnet once the pause ends. The defaults were removed from my reports and the loans were added to my currently open acccounts within a month from them being added at Nelnet. Late payments were wiped out, just the on time payments from October to now are on them, but the dates they were opened are the same, which keeps my age of oldest account info. It resulted in about a 20-30 point bump for me at that time.

Hope this helps, happy to answer any other questions you might have, and good luck!

This works! I appreciate the response, it'll help as a template for when I make the call. Guess the whole process up until the credit adjustment/ jump is a bit longer than I anticipated.

Re: Was anyone here eligible for Fresh Start? How did you benefit?

Blender — Sat, 06 May 2023 09:59:45 GMT

@kcos194 wrote:
I rehabbed via fresh start back in September, the whole process was pretty easy and took about 20 days or so from when I got the paperwork in the mail. I wrote about it on another site, but here's the gist of how it went down:

- I called the default resolution group (DRG) at the Department of Ed and said I wanted to rehab my 2 loans out of default using the fresh start program. You probably know this, but outside of fresh start it would take 9 on time payments to remove the default status, and these weren't low dollar amount payments.
- EdDept sent me paperwork to fill out listing my monthly expenses and I "agreed" to rehab with the larger payment. I use agreed in quotes because that is the official process, but once you send it back, that payment agreement is no longer adhered to.
- My loans were then sent to a non-default servicer, Nelnet in my case, and were added to my other 6 loans currently under the pandemic pause with them. The interest rates and balances were all the same.

If forgiveness goes through, these 2 that were in default will be paid off immediately as they're my highest rates, but if not they're just rolled into my new payment with Nelnet once the pause ends. The defaults were removed from my reports and the loans were added to my currently open acccounts within a month from them being added at Nelnet. Late payments were wiped out, just the on time payments from October to now are on them, but the dates they were opened are the same, which keeps my age of oldest account info. It resulted in about a 20-30 point bump for me at that time.

Hope this helps, happy to answer any other questions you might have, and good luck!

Hey how long did it take for your check to come in? They said allow up to 14 days. I'm business day 9, calendar day 12.

Re: Was anyone here eligible for Fresh Start? How did you benefit?

hoang817 — Mon, 10 Jul 2023 18:16:14 GMT

so do you think the collections from 2020 to 2022 will be deleted after my loan moved to a new servicer from "fresh start" program? thanks

Re: Was anyone here eligible for Fresh Start? How did you benefit?

kcos194 — Mon, 10 Jul 2023 18:45:26 GMT

Re: Was anyone here eligible for Fresh Start? How did you benefit?

kcos194 — Mon, 10 Jul 2023 18:45:57 GMT

@Blender wrote:
@kcos194 wrote:
I rehabbed via fresh start back in September, the whole process was pretty easy and took about 20 days or so from when I got the paperwork in the mail. I wrote about it on another site, but here's the gist of how it went down:

- I called the default resolution group (DRG) at the Department of Ed and said I wanted to rehab my 2 loans out of default using the fresh start program. You probably know this, but outside of fresh start it would take 9 on time payments to remove the default status, and these weren't low dollar amount payments.
- EdDept sent me paperwork to fill out listing my monthly expenses and I "agreed" to rehab with the larger payment. I use agreed in quotes because that is the official process, but once you send it back, that payment agreement is no longer adhered to.
- My loans were then sent to a non-default servicer, Nelnet in my case, and were added to my other 6 loans currently under the pandemic pause with them. The interest rates and balances were all the same.

If forgiveness goes through, these 2 that were in default will be paid off immediately as they're my highest rates, but if not they're just rolled into my new payment with Nelnet once the pause ends. The defaults were removed from my reports and the loans were added to my currently open acccounts within a month from them being added at Nelnet. Late payments were wiped out, just the on time payments from October to now are on them, but the dates they were opened are the same, which keeps my age of oldest account info. It resulted in about a 20-30 point bump for me at that time.

Hope this helps, happy to answer any other questions you might have, and good luck!
Hey how long did it take for your check to come in? They said allow up to 14 days. I'm business day 9, calendar day 12.

Sorry I just saw this, I believe it took about 15 calendar days for me. How did it work out for you?

Re: Was anyone here eligible for Fresh Start? How did you benefit?

kcos194 — Mon, 10 Jul 2023 18:50:57 GMT

@hoang817 wrote:
so do you think the collections from 2020 to 2022 will be deleted after my loan moved to a new servicer from "fresh start" program? thanks

Yea, they should. Mine looked like that too, and basically what happens is the default ones disappear from your credit reports and they then report as in good standing. They have the same balance, and origination dates, so no change to your AAoA and total debt amount, but the payment history will start anew from there. So for mine, the defaulted loans are gone like they never existed, but I have on time payments on the same exact loans from October to now.

Re: Was anyone here eligible for Fresh Start? How did you benefit?

hoang817 — Tue, 11 Jul 2023 14:52:27 GMT

This is going to increase at least 30-40pts on my credit scores. hopefully it will works. Thanks

@kcos194 wrote:
@hoang817 wrote:
so do you think the collections from 2020 to 2022 will be deleted after my loan moved to a new servicer from "fresh start" program? thanks
Yea, they should. Mine looked like that too, and basically what happens is the default ones disappear from your credit reports and they then report as in good standing. They have the same balance, and origination dates, so no change to your AAoA and total debt amount, but the payment history will start anew from there. So for mine, the defaulted loans are gone like they never existed, but I have on time payments on the same exact loans from October to now.

Re: Was anyone here eligible for Fresh Start? How did you benefit?

Blender — Wed, 12 Jul 2023 23:32:05 GMT

@hoang817 wrote:
This is going to increase at least 30-40pts on my credit scores. hopefully it will works. Thanks
@kcos194 wrote:
@hoang817 wrote:
so do you think the collections from 2020 to 2022 will be deleted after my loan moved to a new servicer from "fresh start" program? thanks
Yea, they should. Mine looked like that too, and basically what happens is the default ones disappear from your credit reports and they then report as in good standing. They have the same balance, and origination dates, so no change to your AAoA and total debt amount, but the payment history will start anew from there. So for mine, the defaulted loans are gone like they never existed, but I have on time payments on the same exact loans from October to now.

I hoped for that too, i got 6 lol. So its gonna depend on your profile all together, whether you have more baddies or not.

Re: Was anyone here eligible for Fresh Start? How did you benefit?

Blender — Wed, 12 Jul 2023 23:35:15 GMT

@kcos194 Not as great as I hoped, but as I'm learning, my profile is bucketed. I have other derogs limiting my score.

I got 6 points from EX

I had a score bump on EQ, but it looks like its still on my reports. Ill have to wait for an update.

Nothing on TU that I can see.

Now Im curious does Fed loan servicing also get deleted?

Re: Was anyone here eligible for Fresh Start? How did you benefit?

kcos194 — Wed, 12 Jul 2023 23:44:45 GMT

@Blender wrote:
@kcos194 Not as great as I hoped, but as I'm learning, my profile is bucketed. I have other derogs limiting my score.
I got 6 points from EX
I had a score bump on EQ, but it looks like its still on my reports. Ill have to wait for an update.
Nothing on TU that I can see.

Now Im curious does Fed loan servicing also get deleted?

Ah, that stinks, but hey it's 6 points in the right direction. I'm not sure about FedLoan Servicing. Whoever had the defaulted loans, that's what comes off. When my 2 were in default they just showed as "U.S. Department of Education" because they were more or less the collection agency for the defaulted loans. Now they all show as "Department of Ed / Nelnet". I know I had done stuff with FedLoan Servicing in the past, I just can't remember exactly how they were involved.

Re: Was anyone here eligible for Fresh Start? How did you benefit?

Blender — Thu, 13 Jul 2023 00:47:54 GMT

@kcos194 wrote:
@Blender wrote:
@kcos194 Not as great as I hoped, but as I'm learning, my profile is bucketed. I have other derogs limiting my score.
I got 6 points from EX
I had a score bump on EQ, but it looks like its still on my reports. Ill have to wait for an update.
Nothing on TU that I can see.

Now Im curious does Fed loan servicing also get deleted?
Ah, that stinks, but hey it's 6 points in the right direction. I'm not sure about FedLoan Servicing. Whoever had the defaulted loans, that's what comes off. When my 2 were in default they just showed as "U.S. Department of Education" because they were more or less the collection agency for the defaulted loans. Now they all show as "Department of Ed / Nelnet". I know I had done stuff with FedLoan Servicing in the past, I just can't remember exactly how they were involved.

Ah ok, I may try and call the DOE tomorrow and see what they have to say about it. My last CO was set to drop friday, but if FLS stays, I've got a few more months to go.