0 COMMENTS
This press release details the U.S. Department of Education's announcement of a new path for borrowers who are incarcerated to exit default through consolidation, providing them access to improved credit and to better repayment options than ever before. Borrowers who had student loans before becoming incarcerated can now consolidate their loans to get out of default, providing them with certain types of loans—including Perkins Loans and commercially held Federal Family Education Loan Program (FFEL) loans—to gain access to income-driven repayment (IDR) plans like the Saving on a Valuable Education (SAVE) Plan. Borrowers who are incarcerated can still sign up for Fresh Start until September 30, 2024, as an additional option to exit default. Previously, this population of borrowers would have to rehabilitate their loans to get out of default, rather than having the option to consolidate.
