Need That Money

Financial Assistance Options During COVID-19 Pandemic

Financial Assistance for Those Impacted by COVID-19

The COVID-19 pandemic has had a significant impact on the global economy, leading to mass layoffs, reduced working hours, and business closures. As a result, many individuals are struggling to pay their bills and make ends meet.

Fortunately, there are various financial assistance options available to help those who have been affected by the pandemic.

Banks Offering Relief During the Pandemic

Many banks have stepped up to offer support to their customers during these challenging times. Here are some of the ways that banks are providing relief:

Ally Bank

Ally Bank is offering a 120-day deferment on auto loan payments with no late fees. Customers can also apply for an overdraft fee suspension up to 120 days.

Bank of America

Bank of America’s Client Assistance Program offers payment deferrals for mortgages, auto loans, and credit cards. They are also waiving fees for insufficient funds and overdraft transactions and allowing clients to modify or postpone their payments for up to 90 days.

Chase

Chase is offering payment assistance for credit cards and loans. They are also working with clients to resolve credit card billing disputes and are providing relief to those affected by the pandemic through a hardship program.

Citi

Citi has implemented a credit card forbearance program, allowing customers to delay payments for up to two billing cycles. Additionally, customers can apply for personal loan and credit line solutions, retail bank ATM fee refunds, mortgage loan forbearance, and student loan assistance options.

Regions Bank

Regions Bank is providing free check-cashing for non-customers and waiving CD withdrawal penalties. They are also offering account fee waivers and savings and money market withdrawal fee waivers.

TD Bank

TD’s TD Cares program is offering loan payment deferrals, late fee waivers, and support for eligible account types. They are also waiving fees associated with transfers and exchanges processed through a TD branch or automated telephone line.

Student Loan Servicers

For those struggling to pay their student loans during the pandemic,

Navient and

Nelnet are offering relief programs to help borrowers navigate this difficult time.

Navient

Navient is offering a COVID-19 forbearance for customers who are experiencing short-term financial hardship. This program suspends payments for up to three months.

Nelnet

Nelnet is providing borrower relief options, including temporarily postponing student loan payments and waiving late fees.

Mortgage Lenders

The CARES Act has provided relief for homeowners who are struggling to make their mortgage payments during the pandemic. Additionally, Mortgage Electronic Registration Systems (MERS) has created a centralized database to help borrowers identify who their mortgage servicers are.

Alternative Financial Assistance Options

Employer Assistance Programs

Some employers may offer financial assistance programs to their employees impacted by COVID-19. This can include options such as paid sick leave, expanded family and medical leave, and employer-sponsored loans.

Balance-Transfer Credit Cards

Balance-transfer credit cards can be a useful tool for those who need to consolidate high-interest debt. These cards often come with low or no interest for a certain period, giving individuals time to pay off their balances without accruing additional debt.

Payment Arrangements

Many utility and telecom providers are offering flexible payment arrangements for those impacted by COVID-19. It’s important to contact these companies and explain your financial situation to see what options are available.

In conclusion, if you’re facing financial challenges due to the COVID-19 pandemic, it’s important to explore all available options and seek assistance when necessary. Banks, student loan servicers, and mortgage lenders are offering relief programs to help their customers during these difficult times.

Additionally, there are alternative financial assistance options, such as employer assistance programs, balance-transfer credit cards, and payment arrangements. Remember that financial institutions are willing to work with customers experiencing hardship, but it’s up to individuals to reach out and ask for help.

Relief for Student Loan Borrowers

The current COVID-19 pandemic has caused an unprecedented impact on the economy and has led to massive layoffs and business closures, leading to difficulties for student loan borrowers to make their monthly payments. Fortunately, many student loan servicers, including

Navient and

Nelnet, are offering relief programs to support their customers during these challenging times.

Navient

Navient is one of the largest student loan servicers in the country, providing assistance and resources to more than 10 million borrowers. They are offering a 90-day forbearance for customers who are experiencing short-term financial hardship due to COVID-19.

This program allows individuals to pause their payments for up to three months. During this time, interest will continue to accrue; however,

Navient offers flexible repayment options to help borrowers get back on track. Furthermore,

Navient is offering loan modifications, allowing individuals to change the terms of their current repayment plan permanently.

Nelnet

Nelnet is another loan servicer that is offering a 90-day forbearance period for those who need support due to COVID-19. This program allows borrowers to pause their payments without accruing late fees or additional interest.

Nelnet is also offering payment deferment, allowing individuals to delay their payments. The interest on the deferred payments is capitalized, which means that it is added to the principal balance of the loan, and interest accrues on that new higher balance.

It’s essential for borrowers to reach out to their loan servicers to see what options are available for them. They should not assume that relief programs will be automatically applied to their accounts.

Mortgage Relief Under the CARES Act

The Coronavirus Aid, Relief, and Economic Security (CARES) Act provides relief for homeowners who are facing financial challenges due to COVID-19. The Act offers various ways for federal homeowners to receive support and protection from foreclosure.

Federally Backed Loan Forbearance

The CARES Act has imposed a temporary moratorium on foreclosures for federal government-backed loans, such as those offered by Fannie Mae, Freddie Mac, and the Federal Housing Administration (FHA). It’s important to note that not all mortgages are federally backed.

The Act also offers reduced payments, allowing individuals to have their monthly payments temporarily decreased or eliminated altogether for a specific period of time. Borrowers who have experienced a significant reduction in income or who have become unemployed due to the pandemic may be eligible for these relief options.

Commercial Lenders’ Assistance Programs

Many commercial lenders are offering assistance programs to their customers who are struggling to make their mortgage payments due to COVID-19. One example is the Mortgage Electronic Registration Systems (MERS), which is a centralized database that helps borrowers identify their mortgage servicers.

MERS is supporting lenders by offering a lenient stance on delinquent payments. Existing lenders assistance programs are available to offer a wide range of support mechanisms, so borrowers must communicate with their lenders to access such assistance.

It’s important to note that relief programs are not always automatically applied. It’s essential for borrowers to contact their mortgage servicers immediately if they’re experiencing financial difficulties.

This allows lenders to evaluate the borrower’s circumstances and offer relief options as required. Mortgage servicers can provide guidance on the application process for federal and commercial mortgage relief options.

Conclusion

In conclusion, the COVID-19 pandemic has caused a widespread economic impact that’s led to difficulties for many student loan and mortgage borrowers. Fortunately, there are various relief programs available to help individuals facing financial challenges due to COVID-19.

These include student loan forbearance and deferment programs, federal-backed loan forbearance, and commercial lenders assistance programs. It is strongly recommended that borrowers contact their lenders and loan servicers immediately if they’re facing financial challenges due to COVID-19.

By doing so, they can provide information on their financial situation and access all available assistance programs as soon as possible.

Additional Resources for Financial Relief

In addition to the relief programs offered by banks, student loan servicers, and mortgage lenders, there are other resources available to help individuals facing financial challenges due to the pandemic. Here are some of the additional resources available:

Free Financial Planning

The pandemic has warranted the need for individuals to review their finances and create more financially resilient plans. Fortunately, some organizations provide free assistance to consumers seeking financial planning help.

Both the Financial Planning Association and Certified Financial Planners offer resources and referrals to support individuals seeking financial guidance. Nonprofit credit counseling agencies also offer assistance in creating and maintaining budgets, managing debt, and saving for the future.

Unemployment Benefits

Individuals who have lost their jobs due to COVID-19 may be eligible to receive unemployment benefits. The Pandemic Unemployment Assistance program expands coverage to individuals who are self-employed, freelancers, gig workers or have limited work history so that these workers can receive up to 39 weeks of unemployment benefits.

Furthermore, state unemployment benefits could be an option for those who have lost their jobs temporarily or permanently.

211 Referral Service

The 211 referral service is a comprehensive database that provides social services to the general public free of charge. It connects individuals to crisis specialists who help them find emergency housing and food, mental health resources, employment support, assistance for children, older adults, and the disabled.

How to Obtain Financial Assistance

If you are experiencing financial challenges due to the pandemic, there are steps you can take to obtain the assistance you need. Here are some essential steps:

Assess Your Financial Situation

The first step in obtaining financial assistance is to assess your financial situation. This means creating or updating a budget to determine your income, expenses, and debts.

This will help you identify areas where you can reduce your expenses and tell you which assistance programs to look for.

Communicate with Creditors

If you’re facing difficulties in making your payments, it’s important to communicate with your creditors and lenders. Verify the pandemic-related hardship with creditors and tell them about your current financial situation.

Most financial institutions provide a hardship application process to express interest in obtaining assistance.

Avoid Scams

In times of crisis, there is an increased risk of scams and fraud. Be sure to verify the legitimacy of any financial assistance programs before providing any personal information or payment.

The Federal Trade Commission provides informative resources to assist individuals in protecting their finances and identity. Avoid clicking on internet links from unknown sources or responding to unsolicited communications.

Conclusion

It’s understandable to feel overwhelmed and uncertain as you navigate financial difficulties due to the pandemic. Unemployment, unforeseen expenses, and reduced working hours can pose significant financial difficulties.

Always remember that financial institutions are willing to work with you and provide financial assistance where possible. Use the above resources to your advantage so that you get the help you need to overcome these difficult times.

The COVID-19 pandemic has impacted the economy, leading to layoffs, reduced working hours, and business closures. As a result, many individuals are struggling to pay their bills and make ends meet.

Students and homeowners are also experiencing financial challenges, but fortunately, there are various financial assistance options available to help those who have been affected. Banks, student loan servicers, and commercial lenders are offering relief programs, and additional resources like free financial planning and 211 referral services are also available.

It’s important for individuals to assess their financial situation, communicate with creditors, and be cautious of scams during these challenging times. The key takeaway for individuals is to remember that financial institutions are willing to work with you and provide assistance, but it’s up to individuals to take action and seek help proactively.

Popular Posts