The COVID-19 pandemic has caused upheaval at every level in society. Workers are being laid off or having their hours cut, hospitals are experiencing shortages, and state governments have mandated “shelter-in-place” conditions for people across the country.
Meanwhile, universities have shut down, evicting students from dorms on short notice and shifting lessons online. Some institutions have even had to cancel or postpone commencement ceremonies.
All of this caused panic and confusion among young people, who may not be as equipped to deal with financial hardships as older adults.
“Because of the ever-changing environment right now, many are faced with unexpected expenses and have had to make major adjustments,” says Valerie Moses, senior relationship manager at Addition Financial, a credit union in Central Florida.
We asked Moses, who works regularly with college students, for her perspective on how they can weather the storm in this time of uncertainty.
I had to move out of my dorm. What should I do?
There is no easy answer to this, as schools across the country have tackled this issue in different ways. Some students were dismissed temporarily, while others have had to pick up and go home. Ultimately, students who have permanently moved out of their dorms for the semester should reach out to their school’s housing department to figure out owed expenses and potential refunds.
Related: Where to Find Financial Relief During Coronavirus (COVID-19)
Moses says, “Some colleges and universities are offering prorated refunds to help ease the financial hardship when students have already paid for housing or meal plans.”
What happens to my on-campus job?
Campus jobs are precarious now. Some universities have laid off or furloughed their student workers — with pay and without. Some universities have asked their staff to work from home or come to campus to work. It is best to ask your supervisor what you should do in this situation.
Students who have been laid off or furloughed may be eligible for unemployment benefits in the state they work. For more information, read the questions below.
Can I apply for unemployment?
Students may qualify for unemployment benefits, though you must meet the same eligibility qualifications as all other claimants. Namely, you must be unemployed “through no fault of your own” — which includes being furloughed during the pandemic — and you must meet your state’s requirements for wages earned or time worked during the “base period” (roughly, the past year).
Unemployment typically covers 40% to 50% of lost income, depending on the state where you worked. To apply, you must provide accurate info about your dates of employment, wages earned, the reason for your unemployment. If and when your claim is accepted, you will need to re-certify those benefits every week or two weeks by sharing documentation on the money you have earned and jobs you have applied for recently.
Related: Coronavirus Unemployment: How to Apply for Benefits If You Lose Your Job
On March 25, the Senate passed a $2 trillion stimulus package that offered financial assistance to households affected by the coronavirus. As a result, unemployment benefits have been expanded to include gig workers, self-employed workers, and part-time workers.
You are also covered if you’ve been diagnosed with COVID-19 or need to care for a family member who has it, if your child’s school or daycare has closed, or you’ve been ordered to self-quarantine. People who work from home or are on paid sick leave or paid family leave are not eligible. Those who quit their jobs because they feared the risk of coronavirus are likely not eligible, as unemployment is intended for people unemployed “through no fault of [their] own.”
Will I receive the stimulus check from the federal government?
Yes, likely. According to the legislation, single adults with Social Security Numbers and an adjusted gross income of $75,000 or less in 2019 will receive a one-time payment of $1,200. The payment is automatic and would direct-deposit into the bank account set up when you did your taxes with the IRS. To receive the check, which is expected to come within three weeks for most Americans, we recommend filing your taxes immediately, even though Tax Day has been moved to July 15.
Experts cited
Valerie Moses
Valerie Moses is a senior relationship manager at Addition Financial, a credit union in Central Florida. Follow Addition Financial on Twitter.
The post A College Student’s Guide to Coronavirus Support appeared first on The Simple Dollar.
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