All good things must come to an end, including the Fresh Start initiative.
The Fresh Start initiative, which was announced in a Dear College Letter dated August 17, 2022, allowed schools to award Title IV aid to a student who would have otherwise been ineligible due to a prior defaulted loan. This applied only to the Fresh Start eligibility period.
In a January 6, 2025, update to the original Dear Colleague Letter, the Department of Education reminds schools that the Fresh Start Initiative officially ended at 2:59 a.m. (ET) on October 2, 2024. In addition, the following guidance was provided:
- Direct Loans – When awarding Direct loans, the loan period must have started before the Fresh Start period ended.
- Other Title IV aid – The payment period must have started before the Fresh Start period ending date.
- Disbursements – As long as the loan period or payment period started before the ending date of the Fresh Start initiative, disbursements of aid can be made after the Fresh Start ending date. No Title IV aid may be awarded for a loan period or payment period that begins after the Fresh Start ending date.
