Fresh Start Initiative and Borrowers in Defaulted Loan Status

August 17th, 2022 - EA GENERAL-22-58 and DCL GEN-22-13 were released with guidance about the Fresh Start Initiative and eligibility for Federal Student Aid for borrowers in defaulted loan status. 

CampusLogic is in the process of reviewing the EA and DCL and will provide additional updates through this form and our Customer Success Managers.

 This communication is not meant as regulatory guidance or advice to a school. It is the responsibility of the institution to ensure that the implementation, configuration, updates to, and utilization of the tool set purchased from CampusLogic are meeting Federal and State regulatory requirements/sub regulatory guidance, institutional polices, and accrediting body standards and requirements.

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The CampusLogic product team has identified a global solution to allow schools to collect the Fresh Start acknowledgement from students through a web form. The functionality will include automated triggering of the webform when an actionable comment code is present on the student's ISIR.

Additional details including timing of the release will be shared in the near future.

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To address the new Fresh Start initiative, CampusLogic made the following updates to StudentForms with today's release.

For transactions created after the release of the new tasks associated to students in default (comment codes 124, 132, 134*, 135, 136) will now receive a new Fresh Start acknowledgment form. The form will be able to be electronically signed and submitted to the school for review by the school. Schools will still need to collect and maintain the necessary documentation from NSLDS outside of StudentForms.

We do know that there are rare instances when a student with one of the above comment codes will have a defaulted loan not eligible through the Fresh Start program. However, the limited number of loans listed on the ISIR make it impossible for StudentForms to identify these impacted students. CampusLogic has done its best to identify a solution that will work for most students given the data available in the system.

CampusLogic has included some language within the help text to try and address this. When reviewing NSLDS if you determine a student’s defaulted loans are not eligible for Fresh Start you can request the necessary default clearance documentation through additional information.

New Additional Information Tasks

The Fresh Start acknowledgment (webform) will be made available through request information in the verification transaction for student borrowers. 

Two new documents will be added to Other Documents and can be manually requested by the institution as needed:

  • Parent Fresh Start acknowledgment (webform) - This webform requires both student and parent signatures
  • Fresh Start acknowledgment non-webform - This is a downloadable version of the acknowledgment, only requires the defaulted borrower's signature and will most commonly be used for parents with defaulted loans.

Transaction Clean Up

For transactions created before the release that contain a task associated to comment code 124, 132, 134, 135, and 136 school will need to review the open transactions and make adjustments as needed. If the previous default clearance task is no longer necessary, the institution may waive it and manually add the appropriate additional information request for a Fresh Start acknowledgment. You can use the outstanding student task report within StudentForms to identify the students and tasks that need to be reviewed.

Parent PLUS

If an institution would like to collect a Fresh Start acknowledgment for a Parent PLUS borrower, they can manually add the Fresh Start acknowledgment that is a download upload task and indicate in the note to the student who needs to complete the form.

*Students with a comment code 134 will receive two sub tasks one for the Fresh Start acknowledgment and one for grant overpayment.