Realworld’s Comprehensive Guide to Adulting During Coronavirus

Last updated: 6/3/2020 (returning to work vs. unemployment wages, federal and private student loans updates, rental eviction, student loans and credit, furlough and unemployment benefits)

Last updated: 4/22/2020 (addition of tools to check on your stimulus check)

Updated: 4/9/2020 (Stimulus section of Government, Retirement Savings section of Finance, and the Unemployment section of Work)

So this isn’t the Spring we had envisioned — whether it’s your final semester of college, or business as usual at the office, we’re living indoor, socially-distanced lives. Though this means your jeans are being neglected and your loungewear game is on-point, there are a few tough realities that have emerged with coronavirus . As your experts in all things ‘adulting’ — we’re here with the 411 on the “real world” impacts of COVID-19 broken down by topic (plus we’ve touched on a few common scenarios you might be experiencing):

Common Situations:

Losing your job — First off, we’re so sorry and want to do everything we can to help! This is a stressful time no doubt, so here’s the run-down of what you need to know to make it to the light at the end of the tunnel. Key items to think through — unemployment benefits, health insurance, and student loans.

Starting a new job — Sometimes out of something crazy comes something great (like a new job)! Though it might be kind of weird getting to know your coworkers virtually first, we’re living in the future of work. Key items to think through — health insurance/employee benefits, change in income for loan repayment, and moving (if the job requires relocation).

Senior in College — Talk about a chaotic time! From losing the experience of senior spring, to navigating student loans and the job search, we know there’s a lot to think about. We’re here to help. Key items to think through — student loans (especially grace periods), moving, and health insurance.

By Topic:

• Health
• Finance
• Work
• Government
• Living

Health:

This is first and foremost a health crisis — our rule of thumb is, just stay home! It’s your job to stay where you are, watch Netflix, and finish the puzzle you’ve been working on for three days. We give you permission!

That being said, health insurance might feel especially important at times like these. Though a global pandemic is not considered a qualifying event (maybe we should rethink that?), there are a few situations that could arise while we self-isolate that might require giving your plan some consideration:

You’re turning/just turned 26 — Looking at you, March/April babies! In most states, 26 is the golden age of getting cut off from your parent’s health insurance, and is therefore considered a “qualifying event,” meaning that you can enroll in a new health insurance plan. Starting 60 days before your big day and ending 60 days after, you have a “special enrollment period” during which you can choose a new plan. If you have the option, a logical choice is to get on your employer’s plan, but without enrollment meetings taking place IRL, you’ll need to do some more of the heavy lifting from the comfort of your couch. Make sure you read through plans thoroughly, and ask your Benefits rep/HR person for guidance. If you’re not eligible for coverage through your employer, it’s time to head to your state’s health care marketplace (luckily this one is virtual) to check out alternative options. If enrolling in a marketplace plan you have only 30 days post-bday to sign up.

You’re on your university’s plan — So your senior spring might not be what you pictured, but that doesn’t mean your health insurance is going to change as rapidly. The kick-off date with this one depends on your school’s rules — some provide coverage until graduation day, until the last day of the academic calendar, or until one year from enrollment (usually the start of the academic calendar in august), so you’ll need to check with your student services office to ensure you know their policy details. Options here include getting on your parent’s plan, enrolling in a marketplace plan, or signing up for a short-term plan to help bridge coverage if you know you have employer benefits kicking in shortly. If you’re not a senior, you may need to re-enroll in coverage, but can likely remain on your university plan.

You’re changing jobs (and starting a new one) — This is another situation that triggers a special enrollment period (woo!), so get ready to ask a bunch of questions (via email) and read the fine print if you’d like to enroll in your new employer’s plan. If your new employer doesn’t offer coverage you have a few choices — staying on your old employer’s plan if they offer COBRA (but watch out, this can get expensive!), enrolling in an individual plan through the marketplace, or becoming a dependent on another plan (think your spouse if you’re married, your parents if you’re under 26, etc).

You’ve lost your job — Another qualifying event, you’re now able to take advantage of a special enrollment period to sign up for health insurance. The same options apply: first you might be able to enroll in COBRA insurance from your now ex-employer, this will continue your existing plan but usually at an elevated cost for up to 18 months. Second, you can enroll in a marketplace plan (for the rest of the calendar year, or for a shorter term depending on the plan). Or finally, you can join a spouse’s plan if you’re married or your parent’s plan if you’re under 26.

Finance:

Not only is the Coronavirus causing a health crisis, but it’s triggered an economic crisis to follow suit. This means that any investments tied to the stock market might be in the red, companies are tightening things up to prepare to weather the storm, and jobs might be at stake depending on the industry you work in. The good thing is that this affects EVERYONE, and the government is working on a solution to ensure we’re able to make ends meet until we bounce back.

Two areas to pay attention to — Retirement Savings and Student Loans:

Retirement Savings:

• IRA Contribution Deadline — The deadline to contribute to your 2019 IRA has been extended 90 days, meaning you might be able to max out that contribution and claim a tax reward. Contribution limits for 2019 are $6,000 for those under 50 years old, and $7,000 for those 50 years and older.
• Withdrawal Penalties — Normally there are penalties associated with dipping into your retirement account (IRA and 401k) before you turn 59.5. The CARES Act waives this penalty on early distributions up to $100,000 for Coronavirus-related needs. Your withdrawals will still be taxed over the years 2020, 2021, and 2022, unless you return the funds within 3 years.

Student loans:

In Federal Student Loans…

• Federal Loan Interest — The President has slashed interest on all Federal Student Loans, meaning that you’ll owe 0% interest on your loans for at least 60 days. This applies to anyone with student loans through the Department of Education (not private loans through banks or other financial institutions). If you’re not sure if your loans qualify, ask your loan servicer or head to StudentAid.gov/login.
• Deferment and Forbearance — If you’re already 31+ days past due on federal student loan payments, you will automatically be moved to forbearance, meaning your payments will be reduced or delayed (deferment). Though loans in forbearance would normally still accrue interest, they will not at this time. Should you not already be 31+ days overdue with payment, but wish to apply for forbearance for the next few months you can! You just need to contact your loan servicer directly to request it, and then once approved you can stop making payments (for the time being).
• Grace Period — For seniors in college, you would normally have a grace period of 6+ months until you must begin repaying your loans. The government has yet to comment on whether this will be impacted by COVID-19.
• Change in Income — If you’re on an income-driven repayment plan and experience a change in income (or loss of employment), let your loan servicer know. They will work with you to develop a plan.

Updated 6/3 — The CARES Act has suspended all Federal Student Loan payments until 9/30/2020. The Heroes Act, a new piece of legislation (not yet passed), proposes suspending Federal Student Loan payments and interest until Sept 30, 2021. We’ll keep you up to date should that pass!

In Private Student Loans… Unfortunately none of these government protections apply to your loans. Your balance will continue to accrue interest and you will need to continue to make payments as usual.

Updated 6/3 — Some private lenders (Discover, Wells Fargo, and others) are allowing borrowers to pause payment, though interest will still accrue on the remaining balance. Several states have entered an agreement to provide a lifeline to struggling borrowers, and New York State has created it’s own agreement allowing forbearance for 90 days.

Student Loans and Credit — Additionally the three major credit bureaus (Equifax, Experian, and TransUnion) are offering free weekly online credit reports through April 2021. This is a great tool to check whether your credit score is being affected by deferred student loan payments. You can request your credit report here.

Work:

Between working remotely for weeks to the possibility of losing your job, work life is definitely not feeling like business as usual. Whether you’re dealing with setting up your home for productivity or setting yourself up for success in the job search, we’re here with some things to consider:

Home Office — Some employers are offering to extend compensation for supplies like monitors, WiFi, and more. This is definitely a bonus, and not something offered by every company, but could be worth inquiring about should you be covering the costs yourself.

New Job — High five! Yes, your on-boarding experience might be less than traditional (your new colleagues will get to see you looking your WFH best), but most things should be ‘set and forget’. Forms like your I-9, which you typically need to complete in person, might be done online instead. Your employer will be responsible for communicating any procedure when it comes to paperwork, but if you have questions it never hurts to be proactive.

Furlough/Unemployment — With restaurants and bars closed or on takeout/delivery only, salons closed, and other services halted, many service industry employees have been put on furlough (a temporary form of unemployment), while many other industries have had to let employees go given the uncertain economy. Eligibility for unemployment benefits are determined on a state-by-state basis, so you’ll need to apply using that state’s application. Most states allow online applications, for which you’ll need your personal information (name, date of birth, Social Security Number, etc).

You’re able to claim unemployment if you lost your job, as well as if you are furloughed. If furloughed, you will receive benefits until you return to work. If already unemployed, you may be eligible for additional benefits.

If approved, you can expect to receive about 50% of your weekly salary through unemployment, up to a maximum (set by your state), and a set additional amount per week if you have dependents. You should be notified of your approval and allotment 3–4 weeks after applying, and will receive your first check in the mail shortly after (though with the increased rates of application it may take longer). Your benefits can be collected for a maximum of 30 weeks, either through direct deposit or on a special-issue Debit Card. For more information on health insurance implications of unemployment please see the Health section above.

Updated 4/9 — If unemployed, you can file a claim to receive an additional $600 per week for up to 4 months. You can also extend your unemployment benefits for 13 weeks by filing a claim. Those typically not eligible for unemployment, like freelancers or the self-employed, are able to claim 39 weeks of benefits.

Updated 6/3 — As we approach re-opening, your employer may be able to re-hire you. Awesome, but what if you’re making more money on unemployment especially with the $600 a week bonus under The CARES Act? You do not have to take your employer’s offer, however you may become ineligible for unemployment benefits should you have a job offer extended, or should they use their PPP funds to hire someone else to replace you. The CARES Act bonus payment also expires after July 31st, at which point you will need to re-assess your wages vs. unemployment benefits.

Government:

The government gets what’s going on (they’re in charge of making the rules and enforcing them after all) and has called a national State of Emergency. With this, they’ve created a few allowances to ensure we can get by while we get better. So far, here are the details on the extended deadlines, reduced rates, and more:

Taxes — Tax Day is April 15th every year, but Tax Day 2020 has been postponed to July 15th. This means you don’t have to worry about filing or making any owed payments (although it’s still a good idea to file as early as possible). There are a few state or city taxes that might not be postponed (ex. property taxes), so be sure to double check on the policies that apply to you! If you expect a refund, you can file early and get the money sooner, rather than waiting until later in the Fall.

IDs/Driver’s Licenses — Many states are offering a 30–60 day extension on any expiring legal documents (think driver’s licenses, car registrations, etc…). This is state dependent, so be sure to check your state’s Department of Motor Vehicles website to get the facts right. They may also be are suspending late fees and are offering extended renewal deadlines.

Federal Student Loans — For at least 60 days, you will not owe any additional interest on your federal student loans. Regardless of what your interest rate was, it is 0% for the time being! For more information check out the Finance section above.

Unemployment — There are special unemployment requirements put in place when a disaster is declared. For more on unemployment, check out the Work resources above.

The Stimulus — Signed into law on March 27th, The CARES Act has several implications, but one could make you up to $1,200 richer. Your payment amount is calculated based on your taxable income from your most recent tax filing (2019, or 2018 if you haven’t filed 2019 yet). Even if you made $0, you will receive the entire $1,200 payment, as long as you have a Social Security Number and bank account. The payments could take days or months to get to you, but 93.6% of tax filers can expect to see some sort of stipend! Use this tool to calculate based on your unique situation.

• Independent Filers — If you made $75,000 or less and file independently, you can expect a $1,200 payment. For every $100 over that amount earned, your payment drops $5. For example, if you make $85,000, you will take home $700. If you make over $99,000/year you will not receive payment.
• Joint Filers — If you’re married and file jointly and have a combined income under $150,000, you can expect a joint payment of $2,400. And if you have dependents, you stand to get a higher payment ($500 per child under age 16). If your combined income surpasses $198,000/year you will not receive payment.
• Direct Deposit — How to get the money, you ask? Well if the government already has your banking information from a past tax filing, you’ll get the payment directly deposited into your checking account. There are ways to submit your direct deposit information online, but the IRS is warning citizens of fraud and theft possibilities. Otherwise, it will be a paper check via snail mail, going out starting on April 24th.

The IRS has created this vetted tool to track your stimulus check, regardless of direct deposit or mailing. Simply enter your SSN, DOB, and address and they can let you know where and when to expect your $$$.

If you’re having trouble receiving your stimulus payment, check out this resource for troubleshooting help.

Living:

Life feels far from normal right now — whether you’ve been sick, working from home, lost your job, or are learning remotely. There are a few things we can think of to help you try get back to when the living was easier:

Living expenses: If you’ve left your apartment to quarantine with friends or family, or had to move out of campus housing or homes early, many companies are allowing you to suspend services like cable, wifi, heat, and electric during the quarantine period. Give your providers a call and request to be put on a vacation or seasonal status plan — there may be a monthly maintenance fee (Spectrum charges $4.99/month), but it will be a lot less than your full bill.

Eviction: Some states and cities are creating policies to reassure their residents that they won’t be evicted during the COVID-19 outbreak. Not only would an increase in homelessness be troubling as a society, it would counteract all of the measures in place to stop the spread of the Coronavirus. NYC for example, has halted all evictions for 90 days.

Updated 6/3 — The CARES Act prohibits renters from being evicted until July 25th, 2020. After that point, landlords must give tenants 30 days notice before eviction. Eviction rules vary widely state by state, so be sure to check on your unique situation to prepare.

Foreclosure: In order to stay home and quarantine, you have to have a home to stay in! To help with this, the federal government has stopped foreclosures for 90 days, meaning any repossession of your home due to outstanding mortgage payments will be delayed until after the State of Emergency is called off.

Renters Insurance: You never know what kind of chaos can ensue in situations like these — especially if you’ve decided to leave your apartment during the quarantine. From increased levels of cooking and potential for fires, to vacancy leading to burglaries, it’s a really good idea to consider getting renters insurance (all of the time, but especially now). Check out our recommended providers.

Moving: There are a few scenarios here that can be complicated by the Coronavirus pandemic and the subsequent regulations — from prohibiting moving (moving companies are non-essential), to not being able to see new places, there’s a lot up in the air (and not just from coughing). Communication is going to be key here — with both your new and old landlords.

• If your lease is up soon, and you don’t want to renew — you may not be able to move out or see new places given the regulations. You may want to inquire with your landlord to see if they’d be willing to offer a month-to-month lease option, given the circumstances. Hopefully they’ll be flexible and would prefer you stay put rather than have movers come in and have an empty unit until we return to normal.
• If you already have a new apartment, but need to move out and then in — many buildings are prohibiting moving at this time in order to minimize the spread of the virus, so it’s going to be a tough call on getting your stuff from one apartment to the next. It’s worth giving your new landlord a call to see what they’re thinking as well as asking your current building if there’s already a new tenant moving in, and if they’ll be able to let you move out on time.
• If your lease is up soon but not ASAP — you usually need to let your landlord know within 90 days if you won’t be renewing your lease. Talk through the options with your landlord, explaining that given the circumstances you want to let them know you’ll be moving out, however things are so crazy it will depend on whether you’re able to see new places, hire movers, and more.

We will be continuing to update this list with new developments. If there is anything we missed or you have advice to share with our community, please reach out to us at team@realworldplaybook.com. Stay safe and wash your hands!