Tragedy and hardship can strike any family. And when they do, high, unplanned, out-of-pocket expenses can lead a family down a destabilizing and difficult financial path, forcing them to seek high-interest loans, default on their debts, or even file for personal bankruptcy.
FEEA offers eligible federal employees confidential, no-interest loans to help them bridge their financial gaps in times of emergency. FEEA has given over 13,000 no-fee, no-interest loans since 1986, to help feds make ends meet during personal tragedies like illness, death of a loved one, or a house fire.
Please be sure to download and read the Loan Application Instructions before starting the online application. There are a number of documents you will need to collect and attach to your application. You will not be able to submit your application without attaching the required documents.
Special thanks to the thousands of individual donors and BlueCross BlueShield and CareFirst BlueCross BlueShield for their support in expanding our loan program to more families in need.
As a federal government employee you work hard to serve your country. But like anyone, you can face financial hardship from time to time. What options do federal workers have when money gets tight? The good news is that there are special loan and assistance programs tailored to the needs of government employees. In this article we’ll explore the ins and outs of loans and other financial help available for feds.
Overview of Loan and Assistance Options
There are a few main sources that federal employees can turn to if they need help making ends meet:
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Federal Employee Education and Assistance Fund (FEEA) – This nonprofit offers no-interest, short-term loans up to $1,500 for government workers facing financial emergencies. They also provide scholarships, tutoring subsidies, and other aid.
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GovLoans.gov – This government website helps federal employees find and apply for low-interest federal loans. Loan categories include small business education, housing disaster relief, and more.
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Office of Personnel Management (OPM) – The OPM administers programs like the Federal Long Term Care Insurance Program and Federal Flexible Spending Account Program that can help feds manage healthcare and childcare costs.
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Thrift Savings Plan (TSP) – Federal employees who participate in the TSP retirement savings and investment plan may be able to take out a loan or hardship withdrawal from their account in times of need.
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Employee assistance programs (EAPs) – Most federal agencies offer EAPs that provide free counseling and referrals to address issues like mental health, substance abuse, financial struggles, and more.
FEEA Emergency Hardship Loans
One of the best sources of financial assistance tailored specifically to federal workers is the Federal Employee Education and Assistance Fund or FEEA. This nonprofit organization offers short-term, no-interest loans to full or part-time permanent federal employees who have worked over one year and faced a recent financial emergency.
FEEA has provided over 13,000 no-fee, no-interest loans since 1986. These loans help federal employees bridge financial gaps and avoidactions like defaulting on debt or declaring bankruptcy.
Eligible Hardships
To qualify for an FEEA emergency loan, a federal employee must have experienced one of the following hardships in the last 6 months:
- Severe personal illness, injury, or dental emergency
- Severe illness or injury of an immediate family member
- Death of an immediate family member
- Major damage or loss to primary home due to disaster
- Domestic violence and need for safe housing
- Violent crime victim
- Identity theft victim
Loan Details
Here are some key details about FEEA emergency hardship loans:
- Loan ceiling: $1,500
- Interest rate: 0%
- Loan term: 1 year
- Eligible expenses: Rent/mortgage, utilities, funeral costs, medical bills, emergency travel, temporary disaster housing
The loans are disbursed by check made out to the creditor and given to the borrower to deliver. FEEA does not make checks out directly to borrowers.
Applying for an FEEA Loan
To apply for an emergency hardship loan from FEEA, federal employees should follow these steps:
- Download the loan application instructions and review eligibility requirements.
- Gather required documents like pay stubs, bills, hardship evidence.
- Complete the online loan application and upload supporting documents.
- Submit application and wait approximately 2 weeks for a decision.
- If approved, use loan check to pay eligible expenses and repay within 12 months.
FEEA relies on donations to fund its loan program. Approved loan amounts depend on the availability of funding.
Other Financial Resources for Federal Employees
Along with FEEA loans, here are some other options federal workers can look into during financial challenges:
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TSP loans and withdrawals – Those with a TSP retirement savings account may qualify for a loan up to $50,000 at low interest or a hardship withdrawal. Rules and taxes/penalties apply.
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Government student loan repayment – Some agencies help employees repay federal student loans through the Student Loan Repayment Program. Offered as a recruitment/retention incentive.
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Mortgage refinancing – Federal workers may be eligible for special mortgage rates and assistance programs through the FHA, VA, or USDA Rural Development.
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Food stamps – Federal employees can qualify for benefits like SNAP/food stamps, especially if facing reduced hours or furloughs. Apply through state social services agencies.
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Unemployment – Feds who lose their job may apply for unemployment benefits through the state while searching for a new job.
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Financial counseling – Many federal Employee Assistance Programs (EAPs) offer free credit counseling and debt management advice. For example, FEEA reimburses feds up to $75 for approved NFCC agency counseling.
Finding the Right Federal Loan Programs
In addition to FEEA and TSP loans, federal employees might consider government-backed loans for other needs like starting a business, education, home repairs, and more. GovLoans.gov is the official government website that helps federal workers identify and apply for applicable federal loan programs.
Some examples of loans featured on GovLoans.gov include:
- Small Business Administration (SBA) loans like the 7(a), 504, and microloan programs
- Department of Education federal student loans and Parent PLUS loans
- Department of Housing and Urban Development FHA loans
- USDA Rural Development loans for homes, property, and agriculture
- Small Business Administration (SBA) disaster assistance loans
GovLoans.gov has useful tools like a loan finder quiz to point federal workers to the right loan program based on their situation and needs. The website does not actually provide or approve loans, but it simplifies the process of finding and researching appropriate government loans to apply for.
Weathering Financial Storms
Like many Americans, federal employees may encounter bumps on their financial journeys – whether due to emergency costs, layoffs, pay freezes, or life events. But government workers have an advantage when it comes to assistance programs and low-interest federal loans. Doing thorough research, acting quickly after a hardship, and taking advantage of resources like FEEA and GovLoans.gov can help federal employees regain financial stability. With practical aid and smart planning, the storm will eventually pass.
Loan Ceiling: $1,500
Full or part-time permanent federal civilian or postal employees, employed with the federal government for more than one year.
In order to be eligible for a loan the federal employee must have suffered one of the following hardships within the six months preceding the loan application:
- Severe illness, injury, or dental emergency of employee
- Severe illness or injury of immediate family member
- Death of employee’s immediate family member
- Major loss/damage to primary residence due to disaster such as fire, flood, hurricane
- Victim of domestic violence with immediate need for safe housing
- Victim of violent crime
- Victim of identity theft
Eligible Loan Expenses:
Approved loans will be disbursed by check, made out to the creditor and sent to the employee for delivery to the creditor. Please note FEEA will not pay student loans, credit card bills, or make checks out to employees directly. *Certain expenses must be paid directly by the employee with receipts provided and then FEEA will cover one of the other eligible expenses.
- Rent or mortgage payments
- Home utilities (gas, electric, phone)
- Funeral expenses
- Out-of-pocket, uncovered medical expenses
- Emergency travel expenses*
- Temporary lodging due to natural disaster
Government Employee Hero Home Loans & Mortgage Programs 2023
FAQ
Which loan is best for government employees?
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Bank
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Interest Rate
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Max. Loan Amount
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Axis Bank
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15.75% p.a.
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Rs.15 lakh
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HDFC Bank
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11.25%
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Rs.40 lakh
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Cholamandalam Finance
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15% p.a. onwards
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Rs.1L – Rs.3L
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Union Bank
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10.60% onwards
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Rs.10 lakh
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How can a government employee get a loan?
Can I get a personal loan from the federal government?
Who is eligible for a federal loan?
Full or part-time permanent federal civilian or postal employees, employed with the federal government for more than one year. In order to be eligible for a loan the federal employee must have suffered one of the following hardships within the six months preceding the loan application:
How does a federal employee pay a loan?
Loans are repaid through payroll allotment from the federal employee’s payroll administrator to Wesbanco Bank. Wesbanco then remits the loan repayments to FEEA each month. Employees must open a personal savings account with Wesbanco and initiate a payroll allotment for the required loan repayment amount to this Wesbanco account.
Should government employees use installment loans?
Useful for emergencies: When unexpected expenses crop up, government employees can use an installment loan to carry them through, even though they have no safety net in the bank.
What types of allotment loans are available to federal employees?
There are two types of allotment loans which are available to federal employees. These are: Discretionary allotment loans: This type of allotment loan is one in which the borrower can designate a certain amount of money to be taken automatically from the borrower’s paycheck. They are typically allowed for any purpose, such as paying monthly bills.