The Fresh Start program, which was set to return defaulted borrowers to good standing, ends on October 2, raising concerns about missed payments and their consequences.
The on-ramp period ensured missed payments weren't reported to credit agencies, shielding borrowers from delinquency consequences, but with its end, credit scores will be impacted.
Advocates argue that borrowers face significant barriers, including legal challenges and servicer issues, necessitating an extension of the on-ramp period for support.
The Education Department has stated it does not plan to extend the on-ramp period, which leaves borrowers vulnerable to immediate financial repercussions.
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