We’re providing resources, tips, and other information related to COVID-19 in Massachusetts, categorized by the five pillars of our Bridge to Self-Sufficiency®.

We covered Housing and Family under the Family Stability pillar and Physical and Mental Health under the Well-Being pillar. This week we’re moving on to the third pillar of the Bridge, Financial Management.

Click here to see all resource categories.

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Tax Deadlines Moved

The deadline to file and pay both federal and MA state taxes has been moved to July 15.

• Federal info
• State info

Cash Assistance and MA Department of Transitional Assistance (DTA)

Getting cash assistance

• Call your local DTA office to start an application. Find your local DTA office here.
• Hotline: If you’re in Boston and have questions about cash assistance (TAFDC or EAEDC), SNAP, or child care, call Greater Boston Legal Services’’s Welfare Law Unit at (617) 603-1806. Make sure to leave a voicemail with your name and number to get a call back.
• Union Capital Boston is providing $150 Visa gift cards to families in the Greater Boston area who are in need of financial support due to coronavirus, either because of school closings or lost wages. Click here to sign up for support (note: the waitlist is very long).
• See the “Food Assistance” section on this page for SNAP and other resources, and the “Additional Resources” section at the bottom of this page for more emergency relief funds.

DTA offices

• DTA local offices have been closed to in-person visits until further notice. You can still call the DTA Assistance Line at (877) 382-2363, visit DTAConnect.com, and download the DTA Connect mobile app.
• Click here for more information.

Other DTA information

• DTA is stopping all negative cash assistance case actions (for TAFDC and EAEDC only). This means that, prospectively, no one should be terminated or reduced for any reason - including sanctions, failure to verify information, reaching the time limit, etc.
• DTA COVID-19 FAQ

Student Loans

This section contains information compiled from StudentAid.gov regarding student loan payments as a result of the federal government’s CARES Act. The information below pertains to federal loans only. (Policies and terms may continue to change, so make sure to check with your loan servicer regularly for the most accurate information.)

Key Points:

• On March 27, 2020, the president signed the CARES Act into law, which, among other things, provides broad relief for federal student loan borrowers.
• Your payments will automatically stop from March 13 through Sept. 30, 2020 (this may take some time to reflect on your account, make sure to check your account and contact your loan servicer).
• The administrative forbearance will last from March 13 through Sept. 30, 2020.
• Any payment you made during the administrative forbearance period (March 13, 2020, through Sept. 30, 2020) can be refunded.
• Suspended payments will count towards IDR forgiveness and Public Service Loan Forgiveness.

Payments

1. If I make loan payments during the 0% interest period, how will they be applied?

During the period of 0% interest (March 13, 2020 through Sept. 30, 2020), the full amount of your payments will be applied to principal once all the interest that accrued prior to March 13 is paid.

2. Are private student loans eligible for the 0% interest benefit?

No. ED does not have legal authority over private student loans, and they are not covered by the CARES Act.

Loan Forgiveness

1. If I’m currently in an income-driven repayment (IDR) plan, will my suspended payments count toward IDR forgiveness?

Yes.

2. Will suspended payments count toward Public Service Loan Forgiveness (PSLF)?

If you have a Direct Loan, were on a qualifying repayment plan prior to the suspension, and work full-time for a qualifying employer during the suspension, then you will receive credit toward PSLF for the period of suspension as though you made on-time monthly payments.

Questions About the Forbearance (Temporary Suspension of Payments)

1. I understand that my loans will be placed in administrative forbearance, temporarily suspending my monthly payments. How long will the administrative forbearance last?

The administrative forbearance will last from March 13, 2020, through Sept. 30, 2020.

2. What will happen to my regular auto-debit payments if I do nothing?

Auto-debit payments are suspended during the administrative forbearance. Any auto-debit payments processed between March 13, 2020, and Sept. 30, 2020, can be refunded to you. Contact your loan servicer to request that your payment be refunded.

3. If I made a payment after the president signed the CARES Act on March 27, 2020, can I receive a refund?

Yes; any payment you made during the administrative forbearance period (March 13, 2020, through Sept. 30, 2020) can be refunded. Contact your loan servicer to request that your payment be refunded.

4. If I’m trying to rehabilitate my defaulted student loan, will my suspended payments count toward my rehabilitation?

Yes.

How will I know when I will have to start making payments again?

The 0% interest period and administrative forbearance is currently set to expire on Sept. 30, 2020. Your servicer will contact you, no later than in August, to remind you that you will need to start making payments again. Make sure your contact information is up to date in your loan servicer account profile.

What if I want to continue making payments?

If you wish to continue paying your loans during the administrative forbearance period, or to pay more or less than your regular payment amount, you are free to do so. Contact your loan servicer or visit your servicer’s website to make a payment or to find out how you can continue or start auto-debit payments. Continuing to make payments during the administrative forbearance could help you pay down your loan balance more quickly because the full amount of a payment will be applied to principal once all interest accrued prior to March 13, 2020, is paid.

If you continue making regular payments but then experience a change in income, please contact your loan servicer as soon as possible to discuss options, such as enrolling in an income-driven repayment plan to lower your payments or opting in to the administrative forbearance that ends Sept. 30, 2020.

What if I want to continue making a partial payment while my loan is in forbearance?

As long as you are in forbearance, you will not be penalized for making a payment that is less than your usual monthly payment. Meanwhile, you still have the option to make a payment on your loan to make progress toward reducing your balance. Contact your loan servicer or visit your servicer’s website to make a payment or to find out how you can continue or start auto-debit payments.

Questions About Defaulted Loans

On March 25, 2020, ED announced that my federal tax refund would not be withheld to repay my defaulted federal student loan debt. My refund has already been taken. Will I get it back?

Yes, but only if your federal tax refund was in the process of being withheld—on or after March 13, 2020, and before Sept. 30, 2020—for the repayment of a defaulted federal student loan.

Your federal tax refund will not be returned to you if the process to withhold your refund was completed before March 13, 2020.

If you have questions about whether your federal tax refund was withheld, call ED’s Default Resolution Group at 1-800-621-3115 (TTY for the deaf or hearing-impaired 1-877-825-9923).

Click here for more FAQs about student loans and the COVID-19 crisis.

Debt Protection

• If you have questions or need assistance with debt collection or other issues around debt, contact the MA Attorney General’s Consumer Hotline at 617-727-8400 (available Monday - Friday, 10am-4pm)
• Click here to learn more.

How Do I Manage My Finances During COVID-19?

Tips from EMPath’s Financial Specialist

Communication is key

• The most important advice in managing debt during ANY financial hardship is regular communication with your financial institution such as your bank, creditor, or student loan servicer.
• Always alert your financial institution immediately when you are beginning to experience financial hardship and inquire about options they can provide such as lower interest payments, changing the bill due date, temporary relief, etc.
• It is understandable that taking the time to call and have those conversations can be difficult emotionally. Keep in mind that financial hardships often happen at no fault of your own. Speaking with your bank as soon as possible can save you money in the long-run, such as reduced interest payments or preventing a debt to go into collections.
• Be prepared to explain your situation to your bank/creditor. You may want to write down your story prior to the call to help you better explain your situation to the customer representative. This may include important dates related to your employment and a list of other debts/accounts/medical expenses you have financial obligations to at this time and having difficulty paying due to reduced income or employment.

What steps can I take?

• Contact your bank or financial institution immediately via the customer service phone number on the back of your credit card to inquire about financial help during the pandemic.
• You may also be able to contact your financial institution via online support through their website or online chat support. Take notes as you speak with your financial institution and request for documentation of any agreed upon terms or changes to your credit card/bank etc.
• Utilize online banking or mobile apps to manage your payments or fund transfers to decrease in-person contact at financial institutions.

Additional information and resources:

• Protect yourself financially from the impact of the coronavirus (Consumer Financial Protection Bureau)
• Credit card issuers are helping consumers affected by coronavirus — what you need to know (CNBC)