Nearly two years and a name change later I’m back! It’s funny reading my last post. Currently I’ve been in isolation for over a month from the COVID-19 pandemic and with that my grocery store trips have been limited and I haven’t stepped foot in Trader Joe’s in over two months. Pre lockdown it was just getting too busy for my liking and post lockdown the lines to get in have not been worth my time. I’ve been doing my grocery shopping at the Walmart Neighborhood Market in the meantime and while they don’t have the best produce selection I’ve been able to find most everything I need and the prices are unbeatable. They don’t have quite the product selection as TJ’s but they do have an impressive inventory of health-conscious foods such as flax seeds, nut milks, Perfect Bars and their fridges have been stocked with Happy Egg’s and Vital Farms – a rarity these days.
Like most people I’ve been searching for more productive ways to use my free time especially as I live alone now (an exciting update!) which has created its own quarantine challenges. My plan with this blog is to post entries twice a week on various topics relating to personal finance – if you have any requests or questions feel free to send them my way, I’d love your input!
The virus has brought on a whole slew of new issues when it comes to our finances – unemployment, loss of income and a bear market… I won’t drone on as I think we’re all aware of the severity. While we have little control over our current situation, I wanted to focus on topics we DO have control over – starting with our student loan repayment plans.
If you have federally held student loans you’re likely aware the CARES Act included an administrative forbearance on most federal student loans backdated from March 13, 2020 to September 30, 2020. This means the following for you as a borrower:
- All auto-payments have automatically been suspended between these dates.
- No interest will accrue during this time period.
- Any payment made during the administrative forbearance may be refunded to you.
With these temporary changes now is a perfect time to take a look at your student loan repayment plan and make adjustments where necessary. Some potential ideas to think about –
- If your employment status has been impacted by this pandemic, your student loans are one less thing you need to think about right now. If there’s any way I can help, don’t be afraid to DM me.
- Do you have an emergency fund saved? Usually this would qualify as 3-6 months of expenses but seeing how quickly things can happen 12 months is a great goal too. Decide how much best fits your situation and use this time to save, save, save.
- Do you have higher interest rate loans like credit card debt, auto loans or private student loans? First, call these lenders and ask what they’re offering in COVID-19 response. Second, think about redirecting funds to pay these loans while your student debt is interest-free.
- EF in a good place, no high-interest-rate debt and fortunate enough to have a steady income right now? Great. Determine how much (if any) you can continue to pay towards your federally held student loans and chip away at that principal balance. You can make manual payments yourself or reach out to your lender to request your auto-payments continue.
- Lastly, this virus has hit our communities hard. Look for ways you can help support your neighbors with your wallet by donating to causes that resonate with you. Living intentionally with your finances gives you a unique opportunity to help in situations such as these.
Phew, that was lengthy. Let me know of any topics you’d like covered or questions you have. I hope you’re all staying safe and your friends and families healthy. This is only temporary, we will overcome.
On Top of Your Money 