How to Apply for Government Loan
There are a number of government personal loans available for everything from paying for a college education, to obtaining financing to buy a home. There are even some government loans which are designed to help a small business owner fund the venture through fixed or low interest rate loans. In addition, there are many government grants that never have to be repaid. Following are some of the different types of government loans and grants and a few tips on how to apply for them.
Government Education Loans
The Federal Government provides assistance for students who would like to go to college and cannot afford to pay for it. The Perkins Loan is designed to assist financially challenged undergraduates, as well as graduates, obtain funding to help pay the many costs associated with getting a college education. This loan comes with a fixed interest rate of 5% and typically does not require repayment until the student has been out of school for at least 6 months. To apply for a Perkins Loan, the student can either go online and fill out a free application at the FAFSA website, or visit the guidance office of whatever financial institution they will be attending, to request assistance applying for this loan, as well as information on other grants that may be available.
Small Business Government Loans
SBA loans, which are also known as 7(a) loans, are available to people who are looking for funding in order to get a small business off the ground, or sustain it until profits can be realized. While these loans are known as small business government loans, they are not technically given by the government, but are guaranteed through the government. A person must visit a lender who offers this type of financing in order to apply for it. There are many lenders who participate in this loan program and typically the requirements for application are as follows. The business must be a for profit business, meet certain requirements in terms of size, lack means of internal financing, and show an ability to repay the loan in the appropriate amount of time. In some cases collateral may be asked for, in addition to a statement of personal history for the business owner.
In addition to government loans which are available to assist people or businesses with funding resources, there are also a number of grants that are available for the same purpose. The only difference is that grants do not need to be repaid, provided the money is used according to the specified purpose. The easiest way to apply for any type of government grant is to visit the government website directly. There is a lot of information available on the many different types of grants, as well as the criteria that is required in order to obtain one of them. There are even grants available to assist people who are ill in paying for their medical bills. In addition, a person may be able to qualify for a grant in order to help pay of a government home loan.
Government Loan Consolidation Programs
Government loan consolidation is most common among students who would like to group all of their government loans together, in order to realize just one monthly payment with one interest rate. The department of education offers these programs to students who owe money on more than one government loan at a time. To apply for one of these loan consolidation programs offered by the government, there is an application that may be filled out online by visiting the Department of Education website, or a student may opt to go directly to the guidance office of his/her college for assistance in applying.