Federal money for grants and loans
If federal government loan and grant money grew on trees like apples, ready for picking, we’d all be making cider. It’s not a snap to get a loan for just anything you want and it’s next to impossible to get a grant. However, government financial aid is available for funding a college education, purchasing a home and running a small business. You just have to know where to look.
Grants are almost out of reach
The main difference between a government grant and a loan is that a grant doesn’t have to be paid back. Nearly all federal grants are awarded to universities, researchers, municipalities and non-profit organizations. They’re mostly out of reach by consumers. If you need proof, take a look at the Catalog of Federal Domestic Assistance.
Loans must be paid back
Government sponsored loans must be paid back, with interest. However, the interest rate is generally low when the government works with a private entity to expedite lending. A federal website provides a wealth of information on available loans and other financial assistance for debt relief, plus how and where to apply.
Video: Financing a Small Business
Government offers help to small businesses
Contrary to what you may see or hear, no federal grants are available for starting or expanding a business, like that cider-making operation. The U.S. Small Business Administration (SBA) does offer financial guidance, including help with arranging low-interest loans. Not all startup or existing businesses are eligible.
Video: How Can the Government Help with Foreclosures?
There is Hope for Homeowners
Hope for Homeowners is a new federally sponsored program for people who are at risk of losing their home to foreclosure. The program offers new, 30-year, fixed-rate mortgages insured by the U.S. Federal Housing Administration (FHA). If you are having trouble paying your mortgage, you may be able to obtain a new a mortgage that you can afford. You may be eligible if
- The home is your primary residence and you don’t own any other residential property.
- Your present mortgage started on or before Jan. 1, 2008, and you’ve made some payments.
- You are unable to make further payments on your own.
- As of March 2008 your monthly mortgage payments totaled more than 31% of your gross monthly income.
- You haven’t been convicted of fraud in the past 10 years or intentionally defaulted on debts and did not knowingly provide false information to obtain a mortgage.
U.S. agencies offer additional housing help
Other sources of financial help with housing are these:
- FHA. The Federal Housing Administration insures loans, allowing the purchase of a home with a down payment of as little as 3%.
- The Department of Veterans Affairs. Through this agency, veterans and their families may be eligible for loans to buy a home.
- The U.S. Department of Agriculture. The department’s Rural Housing Service insures loans for home purchases in rural communities.
- Fannie Mae. This public-private organization can help you find a lender and a low-cost mortgage.
Student loans help with college
The U.S. Department of Education's National Student Loan Data System (NSLDS) is the central database for student aid and an excellent source of information if you are pursuing a college education. Eligibility is based in part on your family’s income, your past performance in school and the course of study you are planning. Among programs to consider are these:
- Pell grants.
- Parent Loans for Undergraduate Students.
- Perkins loans.
- Stafford loans.
- Fulbright Educational Exchange Program.
- Harry S Truman Scholarship Program.
- Student Career Experience Program.
- Health Professions Scholarship Program.
- James Madison Memorial Fellowship Program.
- Minority Access to Research Careers.
- Javits Gifted and Talented Students Education Grant Program.
- Scholarships for Disadvantaged Students.
- Montgomery GI Bill.
- Woodrow Wilson Center Fellowships in the Humanities and Social Sciences.
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