As they miss paychecks, furloughed federal workers are taking out bank loans to help pay the bills
As the U.S. government shutdown continues, many federal workers are facing financial struggles due to missed paychecks. Some are turning to bank loans to help make ends meet during this challenging time.
One woman in San Antonio, Texas, whose husband works for the Department of Defense, shared with CBS News that her family had to rely on a no-interest loan from the United Services Automobile Association (USAA) to cover their expenses while he is furloughed. They took out a $3,200 loan from USAA earlier this month, stating that without it, they would have been in financial trouble.
This situation is not unique, as many government workers are struggling to make ends meet as the shutdown drags on. One family, in particular, is feeling the financial strain due to unexpected medical bills from their child’s spinal fusion surgery earlier this year. With their health plan only covering a portion of the costs, they are now facing mounting medical expenses.
Since the start of the shutdown, USAA has provided over $365 million in special loans to more than 119,000 federal employees affected by the government shutdown. These zero-interest loans are designed to help individuals meet their essential needs during this crisis.
Paycheck replacement
Over 1.4 million federal workers missed their first full paychecks on October 24, and it remains uncertain when they will receive their next paycheck. Furloughed workers are entitled to back pay once the government reopens, but the uncertainty of when that will happen is causing financial stress for many.
Other financial institutions, such as Navy Federal Credit Union and Redwood Credit Union, are also stepping in to assist federal workers during this time. Navy Federal offers a “Paycheck Assistance Program” for members who are going without pay, providing no-interest loans up to $6,000. Redwood Credit Union has issued zero-interest loans to eligible federal workers, giving them 60 days to repay the loan.
As the shutdown continues, more and more federal workers are facing financial hardship. It is crucial for these individuals to seek assistance from lenders and financial institutions offering support during this challenging time.
