The coronavirus pandemic has left millions of Americans without a job or at risk of being underemployed. According to the Department of Labor, more than 5.2 million workers filed for unemployment benefits for the first time during the week of April 5-11.
If you’ve experienced a drop in income or hours, it can be challenging to find financial help, especially since you aren’t considered “unemployed.”
But there are programs available to help ease your financial burden and keep you afloat during this difficult period.
Professions that have been hit the hardest by the pandemic
Student Loan Planner®’s March 2020 COVID-19 survey of more than 4,000 readers sought to find out how the pandemic has affected their income and financial practices.
We then surveyed that same group of readers in April to see how their circumstances had changed over 30 days. We found that several professions have taken the brunt of this health and financial crisis.
The dental profession has been severely affected by the coronavirus. Most states don’t consider dental professionals to be “essential workers,” so offices have closed down across the country, with many dental professionals taking a pay cut or losing their income altogether.
Our data showed that 56% of surveyed dentists had a total loss of income by April 2020.
But other professions have also been hit hard by this pandemic too:
- 46% of surveyed optometrists have completely lost their income. And an additional 37% of optometrists’ income levels fell by April.
- 63% of acupuncturists and restaurant staff saw a complete loss of income.
Some doctors and medical staff are experiencing a significant drop in their incomes, as well. The decision to postpone elective surgeries and outpatient services has caused a loss of revenue for many medical employers. For example, the Mayo Clinic is projecting a $3 billion loss this year, resulting in across-the-board pay reductions and furloughs.
Financial assistance for workers with lost wages due to the coronavirus
According to our April survey, approximately 40% of our readers either lost their income or have seen a reduction in wages because of the coronavirus. This is a significant increase from the 29% that reported a change in income during our March survey.
If you’re one of these now underemployed workers, the financial pressure can be overwhelming. Here are some resources that underemployed workers should explore.
How to get underemployment benefits
States now have more flexibility for providing expanded unemployment benefits. This expansion is meant to provide coverage for more people who have been affected by this pandemic. And thanks to the passage of the CARES Act, self-employed individuals may now also be eligible if their workload has dropped off.
Our survey showed that approximately 9% of Student Loan Planner® readers are receiving unemployment benefits. But the vast majority of respondents believe their current earning situation is only temporary, with only 3% responding that they were potentially permanently laid off.
If you’ve lost wages or had your hours reduced due to COVID-19 and coronavirus-related closures or disruptions in your industry, you may qualify to file for underemployment benefits in your state.
Eligibility requirements and awarded amounts for underemployment benefits vary by state. But previous requirements may have been waived due to the current economic crisis, which means you may qualify now even if you haven’t in the past.
Explore your state’s unemployment policies to determine what benefits are available given your situation.
Creditor financial relief programs
Contact each of your creditors or loan servicers to discuss available relief programs. Although some of these programs are available year-round, temporary policies may have been put in place to help people to help minimize the impact of the coronavirus outbreak.
For example, many credit card companies are offering to temporarily lower interest rates or postpone payments, but you have to initiate these financial relief efforts.
When speaking with your creditors, be sure to communicate your inability to pay is a direct result of the coronavirus. And be ready to provide an estimate of how much you can afford to pay during this stressful time.
Available COVID-19 financial relief resources by profession
There are many resources you can tap into outside of unemployment or underemployment assistance. Organizations across the country are pooling resources to support those who need it most.
Here are some resources broken down by profession:
- Dental professionals. The American Dental Association Coronavirus Center for Dentists has various resources and guidance for dentists, including digital learning opportunities and practice resources.
- Optometrists. The Professional Eye Care Associates of America has industry-specific resources, including guidance for human resources and patient relations during this uncertain time.
- Restaurant and hospitality staff. Programs like the Bartender Emergency Assistance Program, One Fair Wage Emergency Fund and the Restaurant Employee Relief Fund offer grants to industry employees who are experiencing economic hardship due to COVID-19.
- Small business owners. The Save Small Business Fund is providing $5,000 grants to small employers in economically vulnerable communities. Additionally, the U.S. Chamber of Commerce has compiled a list of financial assistance programs for small businesses.
- Artists. COVID-19 Freelance Artist Resources provides a list of free opportunities and financial relief options that are available to artists of all disciplines.
- Gig workers. The Freelancers Relief Fund and The Workers Fund offer financial support for workers in the gig economy.
An extensive list of grants and other emergency financial resources has been put together by GrantSpace.
Be sure to thoroughly review these websites for information related to financial relief and other profession-specific resources.
Other resources for underemployed workers
If you’re struggling to make ends meet because of coronavirus-related closures and disruptions, the following resources can connect you with local opportunities for assistance:
- United Way (211). Dial 2-1-1 to speak with a United Way representative. They can provide assistance with finding food, paying bills or accessing other essential services. You can also use its online tool for a list of available resources in your area.
- Local workforce system. These programs and services are designed to help you find new employment or training opportunities. The CareerOneStop website provides job-related resources that can help you find temporary employment or a new career, if needed.
The impact of COVID-19 on personal and professional lives isn’t something anyone planned for. Fortunately, new programs are popping up every day to help individuals and small businesses through this unprecedented time.
Refinance student loans, get a bonus in 2024
Lender Name | Lender | Offer | Learn more |
---|---|---|---|
|
$500 Bonus
*Includes optional 0.25% Auto Pay discount. For 100k or more.
|
Fixed 5.24 - 9.99% APR*
Variable 6.24 - 9.99% APR*
|
|
|
$1,000 Bonus
For 100k or more. $300 for 50k to $99,999
|
Fixed 5.19 - 10.24% APPR
Variable 5.28 - 10.24% APR
|
|
|
$1,000 Bonus
For 100k or more. $200 for 50k to $99,999
|
Fixed 5.19 - 9.74% APR
Variable 5.99 - 9.74% APR
|
|
|
$1,050 Bonus
For 100k+, $300 for 50k to 99k.
|
Fixed 5.44 - 9.75% APR
Variable 5.49 - 9.95% APR
|
|
|
$1,275 Bonus
For 150k+, $300 to $575 for 50k to 149k.
|
Fixed 5.48 - 8.69% APR
Variable 5.28 - 8.99% APR
|
|
|
$1,250 Bonus
For 100k+, $350 for 50k to 100k. $100 for 5k to 50k
|
Fixed 5.48 - 10.98% APR
Variable 5.28 - 12.41% AR
|
Not sure what to do with your student loans?
Take our 11 question quiz to get a personalized recommendation for 2024 on whether you should pursue PSLF, Biden’s New IDR plan, or refinancing (including the one lender we think could give you the best rate).