Federal Student Debt Relief Plan FAQs
Completing a College degree has never been as reachable as it is today. At Luzerne County Community College, you have the flexibility of 8 campus locations, online, in-person, and hybrid instructional delivery modes, pandemic-related support, and now the recently announced loan forgiveness program for all federal loans from $10,000 to $20,000. This unprecedented time is the right time to complete your college degree, leaning on the additional support and opportunities at hand.
A college credential remains a powerful vehicle of economic and social transformation, helping to propel your efforts toward high-earning, in-demand career opportunities just a few credits away. Use this momentum and the fantastic opportunity of being debt free to finish what you have started!
All of us at LCCC remain committed to supporting you as you strive toward your academic and personal success.
Loan Forgiveness Program
What is the Public Service Loan Forgiveness Program?
The Public Service Loan Forgiveness Program forgives the remaining balance on your federal student loans are 120 payments while working full-time for federal, state, Tribal, local government, military, or a qualifying non-profit organization. Visit PSLF.gov to learn more.
Am I eligible for the Debt Relief program?
To be eligible, your individual income must be below $125,000, or your combined income with a spouse or as head of household must be below $250,000. It only applies to loans originated prior to June 30, 2022.
How do I apply?
If the U.S. Department of Education has your relevant income data already, relief will be automatic. If income data is not available, or if you don't know if they have your information, the Administration will have an application in the coming weeks. Subscribe HERE for notifications about applying.
Will all my debt be forgiven?
If you received a Pell Grant, you are eligible for up to $20,000 in debt relief. If you did not receive a Pell Grant, you are eligible for up to $10,000 in debt relief.
What loans qualify?
Only Direct Loans including Parent Plus Loans that originated prior to June 30, 2022 qualify.
How can I check my loan balance?
Log on to studentaid.gov to review your loan balance and status.
Begin the Process and Complete your College Degree
Do I need to start my program again from the beginning?
No, you can pick up where you left off, or you can choose another major if your career aspirations have changed.
What should be my first step to take advantage of this program?
Reconnect with Luzerne County Community College by contacting the Office of Student Retention and Success via EMAIL or by phone at 570-740-0350.
When can I start?
You can ENROLL today to learn about the upcoming start dates.
How do I apply for financial aid?
We will help you every step of the process, but typically you will need to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA is found online at fafsa.gov. The application is free; there is no cost to apply. The FAFSA is used to determine a student's federal Pell grant and Stafford loan eligibility.
Contact the Financial Aid office for help. You can call them at 1-800-377-5222 extension 7389, or email fao@luzerne.edu.
Fresh Start Default Loan Program
FAQs
Am I eligible for the Fresh Restart program?
Only qualifying loans that defaulted prior to expiration of the pause on student loan payments and collections due to COVID-19 qualify for Fresh Start.
Can I apply for financial aid?
Yes! Contact the Financial Aid office for help today.
How can I check my loan balance?
Log on to the studentaid.gov website to review your loan balance and status.
What loans are eligible for Fresh Start?
If you have a defaulted William D. Ford Federal Direct Loan, defaulted Federal Family Education Loan (FFEL), and defaulted Department of Education-held Perkins loan, you are eligible for the Fresh Start program.
How do I take advantage of the program?
The Department of Education will be sending communications to you in the coming weeks and months. You can also review the Fresh Start SITE for up-to-date information.
Benefits:
1. Loans are transferred to "in repayment" status, and the default is removed from your credit report.
2. You have access to federal student aid.
• You can apply for federal grants and loans if you want to go back to school to finish your degree.
3. You can receive collections relief.
• You're protected from involuntary collections like wage garnishment and tax refunds being withheld.
• It also stops collection calls and prevents collection fees.
4. You're eligible for other government loans.
5. Fresh Start does not count as the one change at rehabilitating your loans.
6. You have access to Income-Driven Repayment plans, loan forgiveness programs, and short-term relief.
For Additional Information and Support Please Contact:
• Your default status is no longer reported in the government credit reporting system (CAIVRS) so you may be eligible for government-backed loans like mortgages.
• If you default again, you still have the opportunity to rehabilitate your loans.
• Income-Driven Repayment plans set your monthly payment based on your income and family size. Payments can be as low as $0.
• Since you will be out of default status, you'll be eligible for forgiveness programs, including Public Service Loan Forgiveness.
• You may be able to request short-term relief options like forbearance and deferment.
Rianna Karalunas
Director of Student Retention and Success
RKaralunas@luzerne.edu
570 740-0350