I'm still working, but I'm worried:
If you continue to work, our best financial advice is to continue to make you regular payment. Delaying your payment costs you more money in interest and makes it take longer to pay off your loan. By making your payment now you also free up Challenge resources to help those most in need. Should you become unemployed later, the programs described below will still be available to you.
I've lost my income due to COVID-19:
For those whose income has been impacted by COVID-19 Social Distancing, we do have several Payment Extension/Deferral Programs to meet your needs. Customers that participate in these programs will not have their Credit Report negatively affected. We have also provided information below on accessing the COVID-19 Government Assistance Programs available to help you pay your bills. To determine the most beneficial program for you, we need to know your circumstance. Please call your Challenge Loan Counselor at 888-444-4358.
Challenge COVID-19 Payment Programs
- 2 for 1 Payment: If you have the funds to make a regular monthly payment now we are able to advance your account 2 months into the future. This will cause you to incur additional interest, but the goal is by the time your next payment is due, our economy will be back up and running and you can return to work.
- Interest Only Extension: If you are unable to afford your monthly payment, you can pay just the interest you owe for the month, and we will advance your account one month. By paying the interest immediately you extend the term of your loan by just one month, and avoid additional interest down the road that comes with a deferment.
- Government Assistance Deferment: Thankfully, Government Assistance is on the way. We have included some helpful details about how to access these benefits below. If you are unable to afford the Challenge Payment Programs above, and are simply waiting for your Government Assistance to arrive, we ask that you make a Good Faith payment amount you can afford and we will defer the rest of your payment until your Government Assistance arrives. You will incur additional interest and extend the length of your loan based on the amount you are able to pay.
- Cash Income Deferment: Some Cash Income workers may not be eligible for the Government Assistance. If you learn you are in this group, we ask that you make a Good Faith payment amount you can afford and we will defer the rest of your payment for 30 days. This program will make you eligible for a modification of your loan, once you return to work.. You will incur additional interest and extend the length of your loan based on the amount you are able to pay.
Government Assistance Programs
Expanded Unemployment Assistance
CARES Act Stimulus Checks (Direct Payments)
- Eligibility: Taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment. If customers have not filed a 2018 or 2019 return the IRS recommends that they file back taxes for 2018 to establish eligibility.
Taxpayers who are behind on tax payments or Child Care may NOT be eligible.
- Stimulus Payments: Payments will be of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child (dependents under 16).
- When Payments go out:
- Taxpayers that previously used Direct Deposit to Pay taxes or receive refunds are scheduled to receive payment by the end of April.
- If the IRS does not have your Direct Deposit information they will offer a web-based porta in the coming weeks that will allow people to provide their banking information to the IRS online so that they can receive their payments immediately. https://www.irs.gov/coronavirus/economic-impact-payments
- Taxpayers that are paid via check may take up to 12 weeks to receive their payments.
Online Resources and References