How To Find and Apply for a Government Loan or Grant

There are lots of people who are looking for money to fund their education or start a business. Even though some people ever heard that the federal government provides grants and other forms of free money to individuals to cover personal expenses, this is not the case. In reality, government grants are actually medical organizations, entities, universities, and other governments. On the other hand, government loans can help people fund some of these expenses. Therefore, it is important for everyone to know about the differences between a government grant and a government loan. 

What Is a Federal Government Grant?

A grant from the federal government as one of the top ways in which the government supports ideas and projects that are going to provide a positive benefit for the public. In general, grants are used on science projects or stimulate the economy. During critical recovery initiatives, government grants usually provide the backbone that makes these projects go.

  • Law Enforcement Organizations
  • State and Local Governments
  • Universities and Colleges
  • Research Groups and Labs
  • Specific Businesses that Operate in Certain Industries
  • Non-profit Organizations

Individuals usually cannot qualify for a grant from the government. On the other hand, there are other ways that individuals can request help from the government to fund personal expenses such as education and business start-up costs. 

What Is a Loan from the Federal Government?

Those who are looking for help from the federal government for education, housing, or small businesses may want to apply for a government loan. Government loans are usually given to serve a specific purpose such as the ones above. Loans are different from grants because loans usually have to be repaid. Often, these loans are paid back with interest. 

How To Search for Government Loans

Those who are interested in learning more about government loans should visit the government website, which is This site is free for individuals to use, unlike commercial sites that may charge a fee for this information before charging another fee for a loan.

There are several types of loans that people might receive from the Federal Government. These include:

  • FHA Loans: FHA Loans are backed by the Federal Housing Administration and provide assistance to those who would otherwise have difficulty obtaining a mortgage 
  • USDA Loans: USDA loans are government-backed loans that are designed to help people buy homes in rural areas 
  • VA Loans: The US Department of Veteran Affairs also backs VA loans, which can help people with a history of service access affordable housing options 
  • Direct Subsidized Loans: Direct subsidized loans are Education Loans that are available for students who need help with paying to attend college
  • Federal Perkins Loan: A Federal Perkins Loan is designed for low-income undergraduate and graduate students who need help funding their education

A major benefit of these last two education loans is that they do not charge interest until the student has finished College. This is why many people prefer government education loans over private options. 

Options for Loan Forgiveness

Finally, there are options for loan forgiveness through these educational loans. The Public Service Loan Forgiveness (PSLF) program provides students with an opportunity to have the balance of their loans forgiven once they make 120 on-time payments, provided they work in an underserved area of the country for a period of ten years. This is a great option for anyone who is looking to make college and graduate education more affordable. Be sure to explore all of these loan options before making a decision.