FEEA’s “Better Late Than Never” Loans
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The prompt for this round of the FEDforum is better late than never. This week, hear from the Federal Employee Education and Assistance Fund (FEEA).
By the time federal employees apply to FEEA’s Emergency Hardship Loan program, they are often facing something dire, like eviction or utility shut-off. If we are able to provide a no-fee, no-interest loan, it’s definitely “better late than never” for the recipient, but we also see too many instances where it is too late for our help. When a fed’s past-due balances are greater than our $1,500 loan limit, or their monthly bills exceed their income by a large amount, FEEA is often not able to assist.
What should a fed in need do so “late” help doesn’t become “never”? Here’s our advice:
Seek help as soon as you know you’re behind. Don’t wait to be multiple months delinquent on a bill. FEEA loans work best when we can help feds catch a problem early, get caught-up on payments, and give them a little breathing room until the next month’s bills arrive.
Make sure your emergency situation qualifies and provide all required documents with your application. Our program overview and application instructions include information about what types of emergencies qualify for assistance and how to fully document the situation depending on what type of emergency it is. We know there are many other types of situations that cause financial hardships, but FEEA can only help with those listed in our program documents. Submitting a complete application allows us to review and approve it more quickly and get a check on the way faster. Delays in responding to follow-up questions or providing required documents mean delays in getting help.
Consider credit counseling. Some feds who need our help truly are having a one-time-only, crazy-string-of-events, no-way-to-be-prepared type of emergency. But others have a regular pattern of falling behind for a variety of reasons, like recurring medical issues. These folks often also have a large amount of outstanding debt, like credit cards with high balances or payday loans with sky-high interest rates. For anyone who feels like they are drowning in debt, only making minimum payments on bills, and maxed out on available credit, consumer credit counseling might offer relief in the form of a plan to repay debt (usually with a single monthly payment) and ultimately get on more solid financial footing. FEEA recommends working with one of the National Foundation for Credit Counseling member organizations, all of which are nonprofit groups dedicated to helping consumers get out of debt.
If you know a federal employee in need, please encourage them to seek help as soon as they know there’s a financial problem. As with most problems, these are much easier to solve when dealt with early.
This column from the Federal Employee Education and Assistance Fund is part of the FEDforum, an initiative to unite voices across the federal community. The FEDforum is a space for federal employee and law enforcement groups to share their organizations’ initiatives and activities with the FEDagent audience.
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