The U.S. Department of Education’s Fresh Start initiative from April 6, 2022 has made significant changes to the way defaulted federal student loans are reported to credit reporting agencies. The positive impact of this initiative has been significant for student loan borrowers. Experian reported in February 2023, the Department of Education's change in reporting positively impacted approximately 8 million trades and 3.5 million consumers. The positive impact is a result of credit bureaus changing the "in default" the status to “current” and “in repayment” status of eligible defaulted federal student loans. These status changes have positively affects on credit scores of borrowers as the record of the default is removed from credit reports.
More information about the Fresh Start program can be found here.
More information about the Fresh Start program can be found here.
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