In the United States, single-parent households are often under immense financial pressure. Without spousal support, single mothers are solely responsible for providing for their families while raising their children. As of 2021, there are approximately 15.62 million single-parent households headed by a female with no spouse present, 23.4% of whom live in poverty.
Without financial resources and assistance programs, such as state grants and government loans for single moms, raising a child can lead to financial ruin for most single-mother households. In this article, we provided a list of available government loans for single moms. Read the article below to learn more.
Advantages Of Getting A Government Loan For Single Mothers
A variety of government loans are available to single-mother households, each with its own eligibility requirements and application process. In addition, government loans have greater advantages over loans from private lenders or other commercial institutions, including:
- Extended Payment Terms. If you are experiencing financial hardships or economic distress, having longer payment terms is significantly helpful since you will have more time to pay the debt.
- Lower Interest Rates. Since the primary purpose of government loans is to provide temporary financial support to families in need, these types of loans generally have minimal and affordable interest rates.
- Lenient Eligibility Requirements. A government loan is your best option if you’re looking for an easy way to borrow money. In most cases, only a few documents are required if your median household income meets the eligibility criteria.
- More Options and Funding Available. On an annual basis, the government sets aside a larger, fixed budget for government loans. Additionally, several state agencies and government-funded organizations provide affordable loans to single parents with exceptional financial needs.
List Of Government Loans Available For Single Moms
The following is a list of the most sought-after government loans by single mothers. Keep in mind that the benefit amount provided by each program may vary, as well as their eligibility criteria.
Federal Pell Grants are available to low-income single mothers who desire to attend college and re-enter the workforce. This grant covers all education-related expenses, including books, tuition, miscellaneous, transportation, and learning materials.
In S.Y. 2021-2022, the government provided Federal Pell Grants of up to $6,495 to eligible students. The grant amount, however, may change based on a variety of elements, including your financial situation, the demands of the courses, and the cost of attending college.
Single mothers can now afford to go back to school and have access to improved employment opportunities with this grant. Submit the Free Application For Student Aid (FAFSA) form to be considered for the grant.
TANF acts as a safety net for financially struggling families. Its main objective is to assist these families in achieving self-sufficiency by providing short-term cash aid and employment assistance. Under TANF, two different types of grants are available: “Child-only” grants and “Family” grants.
Child-only grants are intended to cover childcare expenses and needs exclusively. These are often smaller in amount, equating to approximately $8 per day for one child. Family grants, on the other hand, offer monthly payments that cover a household’s food, rent, utilities, and clothing for up to 5 years.
The CCAP, a state-funded program of the Child Care and Development Block, provides cash assistance to low-income families whose parents cannot care for their children due to work or college obligations. The money provided can help pay for childcare expenses, including childcare providers, nannies, daycare centers, and nursery schools.
Student loans, whether unsubsidized or subsidized, are frequently provided as part of a comprehensive financial aid package for single moms who are returning to college and require more support than what is provided by the Pell grant.
The interest rates on federal student loans are lower than those offered by private loans, allowing you to borrow more money at an affordable rate.
The LIHEAP is a federal program that provides one-time cash assistance to eligible low-income households, people with disabilities, and elderly individuals struggling to pay for their utilities, such as electricity, water, and heating. However, in most circumstances, LIHEAP only covers a portion of a household’s monthly utility bills, while the beneficiary pays the remaining amount.
The WIC is a state-funded program that offers supplemental nutrition grants to low-income women, including single moms, pregnant women, those who are breastfeeding, and children ages 0 to 5. Additionally, this program also provides health care referrals, nutrition education, and nutritious meals to eligible beneficiaries.
Emergency Cash Assistance, also called DCA, offers immediate financial support for single-mother families during times of crisis. For the DCA Program, one-time payments are usually provided instead of cash benefits paid over longer periods of time.
Eligible applicants receive a one-time payment of $1,000 to cover any expenses resulting from emergencies. However, this amount may vary based on the severity and urgency of the situation.
Other Government Resources For Single Mothers
In addition to free government loans, other government resources are available to single mothers.
Medicaid offers medical assistance to qualified families without medical insurance coverage and whose median household income would be classified as low or very low income. If you’re a single mother who is suffering from unemployment and meets certain income requirements, Medicaid is your best option to acquire necessary healthcare services.
Individuals who became jobless due to circumstances out of their control are eligible for weekly compensation through unemployment insurance administered by the U.S. Department of Labor. You may receive up to $974 in weekly payments and unemployment benefits, depending on your state.
Get Help For Single Mothers Today
There are several government loans for single mothers available that can help pay for rent, childcare expenses, medical services, housing, utility bills, and groceries. Eligibility guidelines and benefit amounts for each program may differ.
If you require further financial assistance to attend school, check out this article from Single Mothers Help on college grants for single mothers.