A First Look at Student Loan Borrowers Exiting Default via the Fresh Start Program: An Analysis Using National Credit Panel Data
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| Title: | A First Look at Student Loan Borrowers Exiting Default via the Fresh Start Program: An Analysis Using National Credit Panel Data |
|---|---|
| Language: | English |
| Authors: | Kristin Blagg, Urban Institute |
| Source: | Urban Institute. 2026. |
| Availability: | Urban Institute. 2100 M Street NW, Washington, DC 20037. Tel: 202-261-5687; Fax: 202-467-5775; Web site: http://www.urban.org |
| Peer Reviewed: | N |
| Page Count: | 13 |
| Publication Date: | 2026 |
| Sponsoring Agency: | Arnold Ventures |
| Document Type: | Reports - Research |
| Descriptors: | Student Loan Programs, Loan Default, Loan Repayment, Program Effectiveness, Federal Aid, Credit (Finance), Debt (Financial), Student Financial Aid, COVID-19, Pandemics |
| Abstract: | In this analysis, the author uses credit data to provide a first look at outcomes for a segment of borrowers who appear to have participated in the Fresh Start program, which temporarily removed student loan defaults from credit reporting and allowed borrowers an opportunity to return their loans to good standing. The results suggest that this program provided temporary credit score improvements for most recent defaulters and provided an opportunity to reenter repayment for a small share of defaulted borrowers. Some borrowers who defaulted shortly before the pandemic have been able to keep their loans in good standing through repayment or deferment of payment (e.g., because they are enrolled in school). But a substantial share of borrowers who actively took up Fresh Start and entered repayment appear to be returning to delinquency and possible default, with associated negative credit score outcomes. As the US Department of Education continues to pause involuntary collections on defaulted loans, evidence from the Fresh Start program could support the identification of policy changes that would improve collection and repayment outcomes for defaulted borrowers. |
| Abstractor: | ERIC |
| Entry Date: | 2026 |
| Accession Number: | ED681277 |
| Database: | ERIC |
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