Credit unions and banks have offered multiple assistance options for furloughed employees in the past. And if you already have a loan and are struggling to make your monthly repayments, many offer financial hardship assistance on a case-by-case basis.
Online lenders
While most online lenders don’t offer loans specifically for furloughed employees, you might still qualify. These lenders tend to be less strict than banks about credit requirements and can get you funds in as little as one business day. You also might be able borrow more than what banks or federal credit unions are offering furloughed employees.
You must have good credit to get a competitive rate, however. If you’re concerned about qualifying because of your furloughed status, call customer service to explain your situation — they might be willing to work out a loan that fits your situation. Some lenders like Marcus by Goldman Sachs are offering deferment for furloughed customers with current loans.
Many federal credit unions have no- or low-interest loans for furloughed employees. But to qualify, you’ll need to join the credit — and you might need to meet other requirements, such as living or working in a specific area or joining a particular organization. Many allow you to open a savings account online with a minimum $5 balance.
Federal credit union loans for furloughed employees
Automatically deducted from your account when the government processes back pay
0%
Member of Navy Federal Credit Union with direct deposit
Existing federal government employee or active-duty servicemember of the Coast Guard
Apply 1 day before or 3 days after your scheduled pay date
None
888-842-6328
Space Coast Credit Union
1 month of net pay verified by your direct deposit history
1 year
0%
Member of SCCU with direct deposit set up prior to government shutdown
Federal government or civilian employee, government contractor with payroll received from federal government or military member
Withdraw up to $10,000 on your CD without an early withdrawal fee
800-447-7228
Transportation Federal Credit Union
$3,000
Up to 18 months
4.5%
Member of Transportation FCU or willing to become one
Existing federal government employee with proof of furlough
Skip a payment on your current loans
Free financial counseling
800-368-8432
US Employees Credit Union
Your last biweekly direct deposit rounded down to the nearest $100
2 months or whenever the government processes back pay — whichever is sooner
0%
Federal government employee affected by the shutdown
Member of USECU with an account in good standing
Direct deposit of government pay into a USECU account immediately before the shutdown
Apply by January 15, 2019
Skip a payment on your current loans
Penalties waived for early withdrawal from your share certificate — up to $5,000
312-922-5310
Banks
Some local and larger banks have assistance programs for furloughed employees. In addition to loans, you may be eligible for forbearance on existing mortgages, personal loans and credit cards. You might also find reversed overdraft fees, reduced or waived penalties for withdrawing from a CD early and other benefits.
Banks that offer assistance for furloughed employees
Bank of America
Fee refunds, waivers, repayment plans and loan modifications for current customers
844-219-0690
Chase
Waives or refunds overdraft and monthly service fees from December 24, 2018, until the government shutdown ends. Waiver applies to federal employees signed up for direct deposit into a Chase account in November 2018.
Other hardship programs for Chase customers vary depending on your situation.
888-356-0023
Citi Bank
Adjusts fees and interest for current customers.
Short-term forbearance, adjusted repayments or loan modifications.
800-374-9700
First Command Financial Services
0% APR payroll advance for federal employees signed up for direct deposit into a First Command account.
Penalty-free early withdrawals on CDs.
Repayment assistance on loans.
Increased credit limit and deferred monthly payments on credit card accounts.
Low-interest lines of credit backed by a tax-free mutual fund.
Free financial counseling.
888-763-7600
Huntington Bank
Waives checking account overdraft fees.
Refunds overdraft fees backdated to December 23, 2018.
Low-interest personal loans available until February 6, 2019, or until the shutdown ends — whichever comes first.
888-697-4682
Provident Bank
Up to 2 refunds of late fees on mortgages, home equity loans and credit cards.
Up to 3 refunds on overdraft fees on checking accounts.
Refund on minimum balance fee for checking and savings accounts.
Waives early-withdrawal penalty fees on CDs.
800-448-7768
USAA
Low-interest personal loans and other assistance to members of the Coast Guard affected by the shutdown.
800-531-8722
Wells Fargo
Forbearance and other payment assistance for current mortgage, personal loan, auto loan and credit card customers.
Waives monthly service, overdraft and NSF fees for customers signed up for direct deposit as of November 2018.
800-869-3557
TSP loans for employees on furlough
The Thrift Savings Plan (TSP) agency allows federal employees on furlough to withdraw from their TSP accounts without penalty if they believe they’ll be on furlough for less than 30 days.
But for a longer furlough period, a TSP loan might not be the best option. That’s because TSP automatically deducts repayments from your pay check 60 days after issuing the loan — even if you’re still furloughed.
Are federal contractors eligible for assistance?
Not always — especially if you’re applying for a loan. Some require you to be a full-time federal employee. Others might offer assistance to federal employees in a specific department. Check with your lender to make sure you’re eligible before you apply for any kind of assistance.
5 steps to protect your finances during furlough
These tips should help you keep your budget and credit score in check if you’ve been furloughed.
Contact your creditors. While your provider might already know you’re a federal employee, it’s worth reaching out to explain your situation and learn about your options. A creditor might be willing to offer assistance even if they don’t advertise an assistance program.
Talk to your landlord and utilities providers. You might learn they’re willing to accept a reduced or late payment in light of your situation. And the sooner you let them know, the better.
File for unemployment. You might be eligible for unemployment benefits while you’re on a temporary leave of absence — which means you might not need that loan after all.
Assess your budget. Knowing where you can cut back and where you need assistance can help you figure out the types of help or financing to focus on — if you need it at all.
Consider a budgeting app. Apps can help you easily keep track of your spending so you don’t accidentally go over your furlough budget.
The most recent government shutdown lasted 35 days. It ran from December 22, 2018 to January 25, 2019 and was the longest government shutdown in US history.
Bottom line
If you’ve been put on furlough, look to federal credit unions and online lenders for loans — and contact your banks to learn about assistance programs you could be eligible for. You can also read our guide to personal loans to learn about other borrowing options available.
Frequently asked questions
It depends on the type of loan, but most likely, yes. Reach out to your provider to see if you can defer payments or have late fees waived while you’re not receiving a paycheck.
Anna Serio is a lead editor at Finder, specializing in consumer and business financing. A trusted lending expert and former certified commercial loan officer, Anna's written and edited more than 1,000 articles on Finder to help Americans strengthen their financial literacy. Her expertise and analysis on personal, student, business and car loans has been featured in publications like Business Insider, CNBC and Nasdaq, and has appeared on NBC and KADN. Anna holds an MA in Middle Eastern studies from the American University of Beirut and a BA in Creative Writing from Macaulay Honors College at Hunter College, CUNY.
Thanks for getting in touch with Finder. I hope all is well with you.
To help you pay your accounts, you might want to check the list of lenders listed above. There are credit unions, banks, and online lenders that you can choose from. You can also read more about their descriptions and determine if they are the right option for you. Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
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Can you help me to pay my accounts?
Hi Refilwe,
Thanks for getting in touch with Finder. I hope all is well with you.
To help you pay your accounts, you might want to check the list of lenders listed above. There are credit unions, banks, and online lenders that you can choose from. You can also read more about their descriptions and determine if they are the right option for you. Please make sure that you’ve read the relevant T&Cs or PDS of the loan products before making a decision. Moreover, check the eligibility requirements as well and consider whether the product is right for you.
I hope this helps. Should you have further questions, please don’t hesitate to reach us out again.
Have a wonderful day!
Cheers,
Joshua