Just like government benefits, government loans are another kind of service given by the US government for its citizens. The only major difference between the two is that, government benefits are actual benefits or assistance given by the government without requiring the recipients to pay the amount of benefit or assistance bestowed upon them.
Whereas government loans are the opposite. They function the same as private lending companies wherein they require the recipients to pay the amount of money lent to them with added interest rates.
Most private lending companies require collateral or implement a costly interest that recipients cannot afford to provide or pay overtime. Thus, government loan programs are established to address this problem.
These programs primarily aim to lend money to:
With lower interest rates and less burdensome requirements, its goal is to help citizens and it is not merely for business purposes.
Just like government benefits, there are various types of government loans you can choose from depending on the type of help you need. Below are the following categories:
Qualifications may vary depending on the program you are applying for.
Agricultural:
Most agricultural loans qualify those who:
Business:
The widely used business loaning program under SBA is the 7(a) Small Business Loan. Just like other loaning programs the basic requirements are the following:
Education:
There are various loaning programs for students, may it be for a dependent, graduate, undergraduate, and higher education students. Most programs qualify applicants who:
Housing:
In this category, most programs aim to help low-income families to build and/or improve a house. Most programs may ask for the following requisites:
Veterans:
This is actually a general category. Most of the recipients in this category are working individuals, families, and retired workers. Some basic requisites when you apply are the following:
Note that the listed requirements and qualifications above may vary depending on the program you desire to apply. Some may have special requirements that are not mentioned above.
If you want more specific details about available government loans in the US, feel free to visit the government’s official loan finder website to have access to hundreds of loan programs and find the most suitable one for you.
Home Loan for Renovation provides financial assistance for homeowners to reconstruct and develop their respective. These programs assist homeowners who want to improve their homes but are not financially secured for the expenses.
Veteran loans are programs of the U.S federal government that provides different loan programs for veterans. It primarily provides financial assistance through loans with a specified interest that needs to be repaid.
Education loan is a program that focus on assisting and supporting each U.S student with their educational expenses. It primarily provides financial assistance for eligible students that can be used while they’re pursuing their education goals.
A mortgage loan is a type of loan that can be used for the purchase of land, home, and asset or property. Most individuals get mortgage loans and use them to buy a housing unit or refinance and renovate a house.
President Biden, the Federal Student Aid (FSA), and the Education Department of the country decided to impose changes to the current Public Service Loan Forgiveness Program or commonly known as the PSLF.