What emergency hardship financial aid is and how to get it

MAYA LAB // Shutterstock

 

Emergency hardship financial aid gives you fast financial support when an unexpected crisis leaves you unable to cover essential expenses. You can get this aid through government programs, nonprofits, personal resources, or cash loan options that help you stabilize your situation quickly.

You might need this type of aid after a sudden job loss, a medical emergency, or an urgent bill that hits before your next paycheck. When life feels overwhelming, and your budget can’t stretch any further, emergency aid can act as a safety net so you can focus on getting back on track. CreditNinja discusses types of emergency hardship financial aid and how to go about obtaining it.

Federal and State Agencies for Emergency Hardship Financial Aid

You may be eligible for funding from federal or local assistance. Here are a few situations in which you could get financial aid from government assistance programs.

Unemployment Insurance

If you are facing a job loss, you may be eligible for unemployment insurance. Start with unemployment insurance online. Your state will have a specific site dedicated to unemployment benefits. Once you get there, create a login and provide details about your job loss. You will not qualify for unemployment in most states if you quit your job.

If you qualify, the amount will depend on your wages and dependents.

And so, if facing a financial crisis due to job loss, start with unemployment insurance. Although it may not cover your entire wages, it can be the financial relief you need.

For small business owners, the Small Business Administration (SBA) assists business owners who need financial aid.

Financial Aid for Medical Emergencies

Medical emergencies can affect your credit if you don’t pay your bills. If you have health insurance, start with them. Your insurance should provide some aid after meeting the deductible. The deductible and the amount of coverage will depend on your health insurance policy. A dependent should also be covered if enrolled in your health insurance.

Below are alternatives to health insurance:

• A health savings account (HSA) — An HSA is a type of savings account offered by several employers. Your HSA is essentially a savings fund used for medical expenses.
• Low-cost medical insurance (Medicaid and CHIP) — Medicaid and the Children’s Health Insurance Program are low-cost medical insurance options provided by the federal government for families and individuals on low incomes.
• Temporary Assistance for Needy Families (TANF) — TANF helps families on low incomes cover all kinds of costs, including medical bills and expenses.

Emergency Financial Aid for Basic Necessities

Local and federal government agencies help individuals and families who need financial relief and economic security. Here are a few:

• TANF — As mentioned above, TANF is a federally funded program that can assist families in need. TANF helps with food, housing, health care, childcare, and other basic needs.
• Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) — WIC provides nutritional help for pregnant women and children.
• Local social services — Social service agencies are available all across the country and are usually run by the state. Getting in touch with an agent can help you access resources in your area.
• Social Security Income (SSI) — If you are 65 and over, these benefits could provide you with the emergency cash needed.
• Resources from the Department of Housing and Urban Development (HUD) — HUD can help renters and homeowners with emergencies like evictions and major home repairs. They also help with living expenses such as utilities, mortgage/rent payments, and more.
• Cash programs for veterans — The U.S. Department of Veterans Affairs offers financial assistance for veterans.

Continued COVID-19 Emergency Relief

The CARES Act provided emergency relief for Americans during the beginning stages of the COVID-19 pandemic. Several sectors of the United States government continue to provide cash assistance to families, individuals, and business owners.

Student Aid Programs

Student aid programs help college students get the funding they need to pursue higher education. Every college will have a financial aid office that connects students with financial resources. The Department of Education provides grants for eligible students as federal student aid.

Private student loans are an option to help supply additional funds for costs that financial aid does not cover.

Student aid helps with various costs that exist for college students. Classes, textbooks, food, housing, and transportation are just a few examples of expenses covered by student loan funds.

Loans or Credit Cards for Emergency Financial Assistance

Getting an emergency loan could be another way to get financial assistance. Loans can make it easy to get the cash you need from the comfort of home.

Here are a few loan options to consider.

Personal Loans

Personal loans are one of the most common kinds of loans in the industry. Use a personal loan for almost any emergency. Although versatile, most lenders will ask that you have a good credit score to be eligible.

Credit Cards

Credit cards are another option for emergency funds. Keep in mind things like credit limits and interest rates. Make sure that you fully understand emergency credit cards before choosing this option.

Title Loans

Title loans are one type of lending that uses a vehicle as collateral. Lenders look at the value of a person’s vehicle and income to determine eligibility. It’s extremely important to accurately calculate the interest for a title loan, as they can come with very high rates.

Payday Loans

Payday loans work by securing the funds with a paycheck. Your credit score will not have an impact on eligibility requirements. Keep in mind that they come with high interest rates.

Small Business Loans

Use small business loans for all kinds of business expenses.

Emergency Financial Aid Through Nonprofits and Other Means

Nonprofits, charities, and religious organizations are options when facing financial hardship.

• Nonprofit organizations, depending on your emergency — Nonprofit organizations help with all kinds of emergencies. A few examples of nonprofits include: The American Red Cross, The United Way, The Salvation Army, The Humane Society, Save the Family, and Habitat for Humanity.
• Religious organizations for emergency aid — Religious and spiritual organizations are another place to turn to when you need financial help. Religious organizations can offer volunteers, tangible goods, and sometimes cash donations to help you get through a tough time.
• Crowdfunding for your financial needs—In some situations, this may be a route to take care of short-term financial needs. Crowdfunding is online fundraising set up through an online platform. Friends, families, co-workers, or strangers from all over the world can donate to your cause.

Emergency Hardship Financial Aid Is Out There

If you are facing financial hardship, there is aid out there. Financial aid options vary depending on your situation. Once you have some financial relief, it may be a good idea to build a savings fund. Having three to six months of savings can be a safety net for many emergencies.

This story was produced by CreditNinja and reviewed and distributed by Stacker.