When taking out types of loans with high amounts of funds, it’s possible to get overwhelmed at the repayment schedule. For some people, there are options to help alleviate that burden. If you are a federal employee, loan assistance programs can help you.
Loan assistance programs are options to help federal employees repay their loans in a more accessible way. But these programs are not always known — that’s why it’s important to learn about them. Here’s everything you want to know about federal employee loan assistance.
What is loan assistance?
Loan assistance programs aim to help specific groups repay certain types of debt. The most common type is financial aid to pay for higher education in the form of a forgivable loan.
There are various types of loan assistance programs, administered by federal and state governments. They provide debt relief to some individuals that are part of specific groups, such as government employees.
After being awarded a forgivable loan, the recipient has to complete service obligations, such as completing a certain amount of time working as a federal employee. Upon completion of the required service obligation, the loan assistance administrator will forgive or cancel the loans, making the borrower debt-free.
How does loan assistance help federal employees?
When taking out a bigger loan, such as a student loan, the repayment plan can take a toll on some people’s finances. Loan assistance programs are designed to help alleviate that burden: loan assistance helps federal employees by forgiving a part or entirety of a loan.
For government employees, student loan assistance can get up to $60,000 in funds. However, most loan assistance programs have limits on the amount of income a recipient can earn while participating in these programs. This happens to make the assistance available for workers that need them the most.
If you’re an employee working full time at federal branches of the government and have an outstanding loan, like a student loan, you might qualify for a loan assistance program. If that’s the case, you can find more information at your higher education institution’s office or at your employer.
Federal employee student loan assistance act
For federal employees, loan assistance is available in the form of student loan relief. One of the main legislations for loan assistance is the Federal Employee Student Loan Assistance Act.
The act was established to encourage individuals to enter and continue to work full time in government jobs. The act allows federal employees who are student loan borrowers to apply for relief or forgiveness of the remaining balance of their loans while being employed full-time by public service employers.
Who is considered a federal employee?
How do you know if you qualify for a loan for federal employees? First, let’s define what exactly characterizes a worker as a government employee, and specifically as a federal employee.
A federal employee is anyone that is employed within the branches of government. In the U.S., there are around 4.25 million people directly employed by the federal government, according to a report from Congressional Research Service.
This includes politicians, judges, officials, and uniformed service members, as well as civilians. There are many government branches, agencies, and services that employ civilians as staffers and clerical workers. Those who work in law enforcement, Postal Service, and public health are also considered federal employees.
Loans for federal employees
Some specific groups are most commonly eligible for pre-approved loans. Being pre-approved means that you meet the initial eligibility requirements to apply for a loan. Pre-approved applicants are still subject to the lender’s verification standards before the loan is approved for funding, depending on their specific criteria.
Sometimes these specific groups can even benefit from special conditions, such as the option to choose fixed installment loans. Some of the most common groups eligible for special loans are retirees, health employees, and federal employees.
There are specific options of loans for federal employees. Loans for federal employees only differ from other lines of credit because government jobs offer stable employment. Federal employees have strong job security, with positions that can last for several years and even decades.
These conditions include federal employee loan assistance. Federal employees have available loan repayment assistance programs, usually in the form of a forgivable loan to help them repay specific debts. These programs are most common in student loans and other types of financial aid for higher education.
I am a federal employee, how do I get a loan?
If you’re a federal employee looking to get a loan, there are options suited to your needs. At OneBlinc, we offer loans for federal employees with competitive rates. You’re automatically pre-qualified for a loan at OneBlinc if you don’t have any open bankruptcies and work for one of our partners.
OneBlinc was created to provide fair and affordable credit solutions for people that work hard, but need some extra help to get their finances in order until the next paycheck. We offer fixed, low-installment payments, which we believe to be a true alternative to the vicious cycle of predatory lending. Come to OneBlinc!
Unexpected things happen more often than we would like them to. That’s why OneBlinc is here to help, whether you have an emergency or just need that extra cash to go through the end of the month. We believe in people, and we understand that everyone might need money someday, somehow.