Assistance Programs For Furloughed Government Employees

Corridor Report

The U.S. Federal Government shutdown has caused hardships for federal employees who are furloughed, or still working but without pay.

As a result of the shutdown, businesses and cities are looking to help federal employees with their bills.

Below is a compiled rundown of banks throughout the United States who have announced assistance programs to help customers, who are furloughed federal employees or working without pay. Customers will be required to prove eligibility for programs.

In addition, the following links are provided as a reference to assist Federal Employees affected by the shutdown to provide answers and resources.

• Guidance for Shutdown and Furloughs (PDF file)
• OMB – Agency Contingency Plans
• Sample Letters for Creditors and Mortgage Companies (Word file) [71 KB]
• OMB Guidance Regarding Shutdown Impact on Employee Pay (PDF file)
• FACT SHEET: Pay and Benefits Information for Employees Affected by the Lapse in Appropriations (PDF file) [348.61 KB]

Assistance Programs

In response to the recent federal shutdown, organizations, like USA Today, have compiled a list of assistance programs for furloughed federal workers. They also suggest contacting creditors, including credit card companies, your vehicle and mortgage lenders before missing any payments.

Bank of America’s is offering personalized financial assistance through it’s Client’s Assistance Program, which can be reached at 844-219-0690.

In a News Release on January 17, the digital mortgage lender, Better Mortgage, announced the launch of a mortgage refinance program called Shutdown Relief Emergency Refi that “allows federal employees to tap into their home equity for living expenses and delays loan payments for impacted federal government employees for up to 30 days after the end of the furlough.” For more information go to www.better.com/shutdownrelief.

On December 22, Chase Bank announced its efforts to help customers who are U.S. Government employees; the bank is encouraging customers to contact a special care line at 888-356-0023 to discuss available hardship programs. Help also is available for customers who do business with a federal agency that is also affected, Chase said in a statement.

According to Congressional Federal Credit Union‘s website, Furloughed employees and employees working without pay can apply for the “Relief Line of Credit” with an interest-free rate over 60 days.

Discover Bank is offering assistance, such as skipping a payment and having late fees and interest charges revered if they miss a payment, to Discover card members or individuals who have a loan with the bank that are federal workers. To request assistance, call 800-347-2683.

The Federal Credit Union offers several options listed in its Furlough Center at www.fedchoice.org.

Marcus by Goldman Sachs has announced payment deferral on a loan and the waiving of early withdrawal penalties for eligible government employees impacted by the temporary government shutdown. To request assistance or discuss options, call 844-627-2876.

Navy Federal Credit Union is offering interest-free loans for impacted union members, who have direct deposit of their government pay. In addition, government contractors may be eligible if their direct deposit is received directly from the federal government and will be impacted by a government shutdown.

On January 11, the U.S. Bank announced the creation of a new, low-rate quick loan for federal employees affected by the shutdown. The offer is available to customers with any U.S. Bank Product, including mortgage, auto loans or U.S. Bank credit cards. The designated federal government shutdown line is 877-760-6046.

U.S. Employees Credit Union members, who have direct deposit of their government pay may be eligible for interest-free loans. According to the Credit Union’s website, the Government Shutdown Loan is to be “repaid in 60 days or when the government processes back pay, whichever is sooner.”

Well’s Fargo announced it “will work with individuals and business banking customers whose income is disrupted as a result of the shutdown.” Customers are encouraged to call 1-800-TO-WELLS, or the number on their credit card, debit card or statement for assistance, or visit any Wells Fargo branch. Mortgage, loan, and credit customers may qualify for forbearance or other payment assistance programs based on their individual circumstances, the company posted on its website.

According to a U.S. Office of Personnel Management fact sheet, federal employees may be eligible for “Unemployment Compensation for Federal Employees,” which is administered by state unemployment insurance agencies. The fact sheet states “the law of the state in which an individual’s official duty station in Federal civilian service is located will be the state law under which an individual’s eligibility for benefits is determined.”

Below is a downloadable PDF document below, is a fact sheet for Furloughed and Excepted Employees from the U.S. Office of Personnel (OPM). Additional information from OPM can be found on their website at https://www.opm.gov/policy-data-oversight/pay-leave/furlough-guidance/.

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