“Financial hardship” refers to any situation in which an applicant:
- Lacks sufficient income to pay for basic household expenses, such as housing, childcare, utilities, healthcare, or transportation; and
- Lacks other means to pay for basic household expenses.
When assessing their experience of hardship, the applicant may consider expenses they pay on behalf of a spouse, domestic partner, child, parent, or other family member.
Having resources such as savings accounts or retirement funds, or owning a home or other asset with equity, does not preclude an applicant from claiming financial hardship if accessing that equity would require the applicant to incur penalties or other costs they believe they cannot pay.
Applicants must demonstrate their financial hardship by:
- Attesting that their current pay has been reduced by at least 25 percent compared to the period before they were terminated from federal employment;
- Attesting that they are at risk of missing a payment or payments totalling at least $700 for household expenses, due to this reduction in pay; and
- Providing documentation of household expenses that they may be unable to pay due to that reduction in income. This documentation must be dated within the 30 calendar days preceding the loan application and may include the following:
- Mortgage statement,
- Lease,
- Utility bill,
- Vision, dental, or other healthcare service statement,
- Childcare contract or bill,
- Car loan statement,
- Car insurance statement,
- Medical insurance reconciliation notice, or
- Credit card or other loan statement