The coronavirus has completely uprooted our lives and, in a matter of weeks, changed the way we conduct our day-to-day routine. As students, our classes are different, the environments we live in have changed and the future seems uncertain. Here are some ways you can navigate the financial effects of the pandemic to better prepare for the future.

Review your monthly expenses. For example, do you have both Hulu and Netflix? If you use one more than the other, consider canceling one for the time being to reduce your monthly expenses and keep more cash in your pocket.

Reduce your spending to only what you need. What do you have in your home or apartment that can last you a few weeks? Aside from what will last, make a list of only the things you need. Do your research on the least expensive brands to purchase. Above all, only shop when you need to and try to cut non-essential expenses as much as possible.

If you are worried about credit card payments, some major credit card companies have updated information about their payment policies during the pandemic and any type of assistance they may be providing their customers. If you cannot find any informational resources on your provider’s website, give them a call.

In addition to credit-card debt, student loan debt may be on the minds of some students. During the coronavirus pandemic, student loans borrowers have been granted broad relief on their loans. Whether you are concerned about student loan payments or interest, there are a variety of measures the federal government has taken to help lessen the burden.

First, if you are actively repaying your loans, meaning you have graduated and have passed the six-month grace period, your payments will automatically stop until Sept. 30, 2020. This is called administrative forbearance, and it allows you to stop making your monthly loan payments for a period of time. However, you are still able to make payments if you choose.

Additionally, interest has been temporarily set to 0% on federal student loans. These types of loans include defaulted and non-defaulted direct loans, defaulted and non-defaulted FFEL Program loans and federal Perkins loans. To confirm your loans will have their interest rate temporarily reduced to 0%, you will want to contact your loan servicer, who is whom you make your monthly payments to.

If you choose to continue to make payments during the 0% interest period, your payments will be applied directly to the principal once all the interest that had accrued prior to March 13, 2020 is paid. Some students may choose to continue to make payments, or begin making payments, to pay off any current interest or to begin paying down the principal so that when the 0% interest adjustment is lifted, the interest applied to the loan balance will not be compounding, or accruing on top of pre-existing interest.

In addition to student loans, for many college seniors, understanding what a potential coronavirus recession could mean for job prospects is unnerving. That’s why it’s important to network, even from home. Although face-to-face meetings are off the table, reach out to professionals and recruiters on LinkedIn. Send messages to connections who work at companies you are interested in, set up phone interviews or Zoom calls and do your research on available jobs. Reaching out to your career advisors and professors who can help make connections may also prove to be extremely valuable.

Lastly, do not overlook your resume and cover letters. Tailor your resume and cover letters to the specific positions you wish to apply for. Do your research on the position and the company. Perfecting your application materials during your time at home can be a key piece to helping you secure a job.

Remember, the Syracuse Smart Money Coaches are here to help during this unprecedented and uncertain time. There is also a plethora of COVID-19 resources on the Office of Financial Literacy website.

In addition, Smart Money Coaches are holding virtual appointments and are always available via email for questions about your personal finances or your career. Scheduling an appointment through Orange Success with a Smart Money Coach can help you navigate the next few months. You can also check out the Office of Financial Literacy social media for quick money tips — @SUFinLit on both Instagram and Twitter.

Published on April 18, 2020 at 2:20 pm