Confused about DOE Fresh Start program after FAFSA loan default - conflicting notices!

The Fresh Start program is legitimately designed to help borrowers get out of default without the typical collection fees. It's part of the post-pandemic relief measures. However, those conflicting notices are concerning - it likely means your loan is in transition between servicers or collection agencies. I would recommend checking your loan status on studentaid.gov first to confirm your current default status and which servicer holds your loans. Then call the FSA Information Center directly to clarify which notice you should follow. The Fresh Start program can be very beneficial as it removes the default status from your credit report and makes you eligible for additional federal aid if you want to return to school.

THE SAME EXACT THING HAPPENED TO MY BROTHER!!! He got two different letters telling him different things about Fresh Start. He called for THREE DAYS before getting through to someone. They told him the second notice was an error and he SHOULD apply for Fresh Start. But then when he did they still tried to add like $30K in fees!!! The whole system is designed to trap people!!!

just ignore both... worked for my cousin she just didn't respond to any of their letters for like 2 years and they eventually offered her a way better deal with most of the fees dropped. the govt is just trying to scare u into paying

Hey there! I actually just went through the Fresh Start program last month after being in default for 6 years. When I got the conflicting notices, I was able to reach someone at FSA who explained that the "don't take action" email was automatically generated because my loan was being transferred between servicers. The Fresh Start notice was the one I was supposed to follow. I had similar frustrations with trying to reach someone at FSA - kept getting disconnected or waiting for hours. I finally used Claimyr (claimyr.com) to get through to an agent in about 15 minutes instead of waiting on hold all day. They have a video showing how it works here: https://youtu.be/TbC8dZQWYNQ The agent confirmed that Fresh Start would remove the collection fees (which in my case had added about $18K to my original loan). I'm now on an income-driven repayment plan with monthly payments I can actually afford. The default was removed from my credit report within 3 weeks.

To clarify some confusion in this thread: The Fresh Start program specifically waives collection fees when you bring loans back into good standing. However, capitalized interest from years of default will still be part of your balance. Regarding your conflicting notices - this is a known issue that happens when accounts are in transition. The "don't take action" notice is typically generated when loans are being transferred between servicers. Here's what you should do: 1. Contact FSA directly to confirm which notice applies to you 2. Request Fresh Start enrollment if you haven't already 3. Choose an income-driven repayment plan when rehabilitated 4. Request an account review to ensure collection fees are removed The program deadline has been extended several times but won't be available indefinitely. Getting out of default now will protect you from future collection actions.

fafsa is just a scam tbh

When I got my Fresh Start notice I thought it was a scam at first lol. But I filled out the paperwork and my $36,000 loan (original was like $18k) got put back in good standing and they took off about $7k in fees. The weird thing was I got a notice saying don't do anything a few days AFTER I had already submitted everything. Turns out that was just because my loan was being transferred to a new servicer. So if I were you I'd definitely follow the Fresh Start notice!

I just went through this exact situation! Here's how I navigated it: 1. The "don't take action" email is automatically generated when your loan is in transition to a new servicer for the Fresh Start program 2. The Fresh Start notice is the one you should follow - it's a legitimate program created specifically to address situations like yours 3. I had a similar balance explosion ($19K to $67K over 6 years of default) 4. After enrolling in Fresh Start, they removed about $15K in collection fees 5. I then applied for an income-driven repayment plan (specifically SAVE) and my payments are now $43/month based on my income 6. My loans will be forgiven after 20-25 years of qualifying payments The key is documenting everything and following up persistently. The system is frustrating but Fresh Start is actually one of the more borrower-friendly programs they've created.

To answer your follow-up question - yes, for the income-driven repayment plan I had to provide my most recent tax return. If your income has changed significantly since then, you can submit pay stubs instead. The SAVE plan is particularly generous for lower incomes. They also didn't count my spouse's income because we file taxes separately.