Relief Programs You Should Know Before They Expire
This year has caused many economic hardships for people in some way. There are millions currently facing this economic hardship that the virus has caused.
The CARES Act that passed in March supported and created programs that are set out to help you in some way to lessen any economic burden.
That 2.2 Trillion Dollar Package is set to expire on Dec. 31st and there are no certain extensions set out currently.
Government Benefits — Unemployment
As we know, the Unemployment system has been a lifeline for millions of Americans across the U.S. Everday on my channel we discuss the possible programs that are set out to help you in mind.
The CARES Act included Federal Pandemic Unemployment Compensation which provided $600 per week payments.
It also established the Pandemic Unemployment Assistance, PUA to help people who are self-employed, gig workers, independent contractors, and furlough workers.
Check-in with your state and local government before this program ends on Dec. 31st.
Mortgage Moratoriums
If you need help with your mortgage, reach out to your loan servicer about your options. The CARES Act allowed borrowers to ask for a pause or reduction in their monthly mortgage payment.
Fannie Mae and Freddie Mac put a moratorium on foreclosures for people backed by federal mortgages until Dec. 31st, 2020.
Eviction Moratoriums
The CARES Act provided some protection for homeowners backed by federal mortgage loans or households who received federal funding. “The Center for Disease Control issued an order early in the pandemic that bars most landlords from pursuing evictions.”
Speak with your landlord about your current situations and come to an agreement that may help both parties involved. Some states offer rent assistance as well so double-check in your state if that is available to you.
Student Loan Forbearance
Payments and interests on federal student loans have halted until Dec. 31st. Meaning that you will not have to make payments or accrue interest until the forbearance ends on Dec. 31st.
With only a few months to take advantage of this program, contact your loan servicer before that deadline. If you have federal student loans, apply for an income-driven repayment plan as well if you’re struggling to pay for your loans each month due to lack of income.
Utility Bills
At the start of the pandemic, many states issued orders and passed legislation that required utility companies to respond to the economic impact of the virus. If you’re looking for assistance with paying your heating or cooling bills, utility shutoffs, low-cost home improvements, LIHEAP, known as the Low Income Home Energy Assistance Program was created to help you.
Also, check-in with your utility company about the options that are available to you based on your situation.
Paid Sick Leave and Family Leave
Another program set to expire is the Coronavirus Aid, Relief and Economic Security Act that allows “two weeks of paid sick days to workers at companies with fewer than 500 employees who were stricken by the virus, quarantined, or caring for relatives.”
This also includes 10 weeks of paid family leave for those who need to care for their children as schools have shut down.
401k Withdrawals
Usually, there’s a 10% penalty for early 401k withdrawals however the Cares Act waived that if the withdrawals up to $100,000 of your balance related to the virus. Many have had to dip into their retirement funds to help cover the loss due to the virus that is set to also expire on Dec. 31st.
Double-check with your 401k provider to see if this can be apart of your plan if you need further assistance.
It worth looking at the programs that are set out to help you and although the deadline is soon approaching it’s never too late to look into these programs especially during the Holiday season and with rising cases every day.