Attorney General Kwame Raoul is urging those in the financial quagmire to head for the U.S. Department of Education's Fresh Start program, with a cutoff date looming on September 30, 2024. "If you put off making your payments or had hardships that made it feel impossible, you are not alone, and there are options," Raoul said, as reported.
The program is a lifeline for borrowers ground down by the resume of federal student loan payments in October 2023, after a hiatus due to the pandemic. Federal loans often flounder into default if repayments have gone missing for more than 270 days. Participants in Fresh Start can seize several perks, including halting wage garnishments and avoiding the confiscation of tax refunds or social security payments.
The FSA account at studentaid.gov is the place to check for defaulted loans. By navigating the “My Aid” section and drilling down into the “Loan Breakdown,” borrowers can spot the "Loan Status" for each loan. Enrollment in the Fresh Start is a couple of clicks away at myeddebt.ed.gov, or a phone call at 1-800-621-3115 (TTY 1-877-825-9923), or even a stroll to the mailbox with a letter to Greenville, TX.
Borrowers entangled with FFEL loans need to get on the horn with their Guaranty Agency. Assistance is a call away at 800-621-3115 (TTY 1-877-825-9923). Raoul hints that a simple submission of a FAFSA could spring borrowers from the default trap if they're planning to go back to school. The Loan Simulator online tool can assist borrowers in navigating their repayment options.
Scam artists are on the prowl, warns Raoul, selling snake oil in the form of bogus student loan debt relief. Consumers get grifted, handing over hard-earned cash for services that are free through federal channels. Victims finding themselves swindled can dial their servicer back, place a stop on unauthorized payments, and report to the Illinois Attorney General’s office by complaining. The Student Loan Helpline at 1-800-455-2456 or [email protected] is Raoul's dispatch line.
