People nowadays need something to aid their daily necessities in life. Your salary might not be enough to suffice all of your needs in your everyday living. Many people say that living in this life is quite expensive. You cannot study without money; you cannot fix your house if you don’t have enough budgets and you cannot start a small business without capital.
Amidst of the recession in United States’ economy, the government is still willing to uplift society’s life. The government is doing their best to give a brighter future for all individuals living all across the country. Grants and loans are now available for many people who wanted to have another source of income for their basic needs. Financial crisis really left a big impact to many people in US. Some people were able to start a new life but there are still people who continuously suffering from that great depletion.
At present, there are available federal government grants as well as loans that anybody can have to support their necessities and for any reasonable purposes. You can choose from varieties of grants as well as loans. Maybe you are quite confused how loans and grants differ from one another. These two programs vary from one another so you need to be aware and knowledgeable enough which one you’ll choose from. Let’s have a deeper understanding about loans and grants.
Loan is a kind of liability or usually money owing. It needs redeployment of financial properties between the borrower and moneylender for a certain period of time. Loans need to be reimbursed with additional low interest rate. On the other side not all people have the ability to repay their loans. The main reason why US Government came up with such idea is to uplift their citizens to stand on their own again. There are some rules and regulations that you need to bear in mind when it comes to federal loans. You might probably pay a certain amount each week until you completely pay your loans and its interest in few months time.
Federal government grants on the contrary are another great option for you to choose from. In US, these federal government grants help the economic growth of the country. The funds being issued came from the national revenue of United States’ government. A recipient can get the award or grant from a national agency which is officially authorized by United States’ law to aid the public intention of a recipient for applying grants. Let me just remind you that the federal government is using these grants for their own benefit. Non-profit institutions, charitable trusts and foundations There are different categories of federal government grants and these are:
Block Grants – These grants are given away to local or state governments to be utilized in a broad reason. This grant category is a huge total amount of funds settled through the federal government to regional government together with general requirements as how this award will be utilized. This is in contrast with categorical grant where specific requirements are strictly reviewed. One advantage of utilizing block grants is they can test some ways of utilizing this award but sees to it that it will fall under one goal/objective. On the contrary, the funds for this grant must come from their taxation system so if there are no funds being collected from taxes, there will be no grants that can be used for their specific projects.
Project Grants – This category of grant is provided for a specific use and that is to utilize the funds for research projects. One good research project can be for medical reasons. There are specific qualifications that an applicant must possess before signing up an application for this grant. Three years is the normal length of time for this project grant.
Formula Grants – This type of grant is given as ordered by the law or with the aid of legislation. The Formula Grant comprises elements that are quantifiable like tax effort amount, population, proportion of unemployed people, rate of poverty, housing density and mortality rate.
Earmark Grants – This type of grant became very controversial due to serious involvement of compensated political lobbyists utilized in protecting them. This grant category is openly specified under the appropriations of United States’ Congress.
If you want to start a new life after that economic depletion, you can simply choose from federal government grants and loans and start applying for what you really deserve to have.