How do federal employees apply for loans?


Quick Answer

Federal government employees can apply for loans for emergency situations by mailing or faxing the application available on the Federal Employee Education and Assistance Fund website, notes the agency. They can also apply for loans against their Thrift Savings Plan accounts with Form TSP-20, though they may borrow only against their own contributions, not those made by the government, notes Thrift Savings Plan.

Continue Reading

Full Answer

Federal government employees who need loans for emergency situations, including a death or critical illness in the immediate family, loss of income, major loss of property during a natural disaster, or family breakup, can apply for a loan to pay creditors, notes the Federal Employee Education and Assistance Fund. As of 2015, to qualify, borrowers must have at least one year of government employment, and must mail or fax supporting documentation along with their applications. Loan checks are made out directly to creditors, and loan repayment is made through payroll deductions.

Federal employees who borrow against their Thrift Savings Plan accounts can choose general purpose loans for any use, or residential loans if the money is to be used for a primary residence, notes Thrift Savings Plan. Loans taken against Thrift Savings Plans must be repaid with interest, and payments are generally made through payroll deductions.

Learn more about Personal Loans

Related Questions