At the present moment when there is so much of hue and cry amongst
private loan agencies, each trying to downplay the merits and
work of the other, the loans offered by government remain immaculate
and selflessly benefiting the public.
There is no hiding the fact that Government loans are a cut
above the rest in quite a few ways. As a matter of fact firstly
every private agency offering loan does it with the purpose
of making profits but in contrast to this government loans are
meant only for the welfare of public. In addition since government
is a body meant for the people, it does not seek any personal
gains. Furthermore it is worthwhile remembering that unlike
the private banks and other such loan agencies, government also
offers loans to those downtrodden people who can hardly pay
it back. In addition government loans not just a great help
to the destitute but also a big contribution in the smooth functioning
of the economy of the country.
It is worth mentioning in this regard that Government
loans are primarily of three kinds- Business Loans, Loans
for Home Buyers and Loans for Higher Education.
Since there is no denying that small businesses are quite important
for the US economy, in order to promote them and enhance their
development, government of America offers business loans to
its citizens. Theoretically speaking all those individuals who
desire to kick-start their careers by venturing into some business
can materialize their dreams with the help of government business
loans. Point to be noted in this regard is that what more can
be added to the glory of government loans but that the present
day eminent brands such as Nike, Apple Computer, and Compaq
Computer etc. had commenced with the aid of government loans
In an ideal scenario government loans are immensely beneficial
for those seeking a shelter. As a matter of fact Government
gives home loans for legal purchase of any big or small house.
Fact remained that the rate of interest on these home loans
is deliberately less in comparison to loans taken from private
Since it is worth noting that government of America seeks to
have overall development of the country, it provides financial
assistance not only to elderly people but also to children or
students. As a matter of fact Government enables students to
have a bright future by virtue of education loans. There is
no denying that these loans are a great help particularly to
students who do not come from affluent families. In simple terms
these loans provide a wonderful opportunity to students to go
for higher education even in popular universities. It is worth
mentioning in this regard that the readily available government
loans for higher education not just help a student by sponsoring
his studies but are a boon for his family too. This is because
of the simple reason that the parents are then released from
the burden of hefty fees for their childs higher studies. In
other word a student can pay back the loan after completing
his studies and acquiring a decent job.
On the other side of the coin the drawbacks of Government
loans are that these loans are provided only to law-abiding
citizens and for legal purposes. In addition also a great deal
of paper work is required to procure a government loan. Always
remember that the government loans are not service at your doorstep.
Thats why lot of physical labor is required to get a government
loan. Moreover it is worthwhile remembering that government
loans are not that readily available as loans by private agencies.
So more often than not it takes quite a few days in applying
for a government loan and actually getting it.
Yet it is worth pointing that the shortcomings of government
loans can never dominate their merits. In theory at the end
of the day it is the choice of the customer to decide, which
way to go.
There is no denying that as a student you can obtain a substantial
financial support from
the federal government for your college tuition, books and laboratory
fees. As a matter of fact the loan accrues no interest during
the time that you are legitimately enrolled as a student but
will commence drawing interest upon graduation or whenever you
leave college. Theoretically speaking this is the information
given by all school aid advisors and is pretty much on the level.
In simple terms even though the Soldier and Sailors Act of 1947
should protect you from the increase of interest after school,
sometimes this doesn't happen because the actual law is misinterpreted.
It is worth mentioning in this regard that many administrators
feel that the steady income from a military occupation precludes
any advantage in the delay of paying back a Government
loans or in the reduction of the annual interest.
Believe it or not it is the repayment phase in which many problems
can occur. Fact remained that after the 'no interest' phase
is over, the student loan can be sold by the Federal Government
to state loan agencies. More often than not they in turn can
then sell them to the highest bidder and in this manner the
so called student loans can be quite expensive after the interest
rates grow proportionately.
The general thumb rule in this regard is that the longer the
student loan remains unpaid the larger it grows in size. Always
remember that almost all government loans are administered by
local financial institutions and not by government agents. Fact
remained that this allows many of the government loans to be
placed into delinquent status when this should not happen. In
addition it also permits a ratchet of the loan interest to regular
It is worth mentioning in this regard that under certain circumstances
an education can be paid through government grants which have
no interest or aren't repayable. As a matter of fact they must
be applied to using published guidelines available through the
government or the school grant administrator. In addition these
grants have a specific deadline by which they must be solicited.
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