Fresh Start will help borrowers escape their default status, subsequently allowing them to qualify for future student loan forgiveness options down the line. The choices include income-driven repayment plans like SAVE, which have allowed some borrowers to significantly reduce their monthly payments or even decrease them to $0.

When student loan payments resumed last year after a three-plus year pandemic-era pause, the Biden administration provided what it called an “on-ramp period” through. During that 12-month period, borrowers were shielded from the credit-damaging consequences of missing a payment.