For felons that have been released from prison, the first thing that they would want to do is to start a new life. This can be difficult to do if the felon has no money to start out with. If this is your situation, you may to seek out loans for felons to help you fund whatever ventures you plan to embark on. You could use the money to pay for school or start a business.
To apply for loans in order to go back to school, you can start by filling out the Free Application for Student Aid (FAFSA). This form will ask about your current financial situation and based on that make a calculation as to how much money you can get. The type of loan you will get if you qualify is the Stafford loan which is a federally subsidized loan. The interest rates are lower than other loans. Also, you don’t have to pay the loan back until after you are finished with your education. That would be better than getting a non-subsidized loan which would have a higher interest rate and you would have to start paying it back immediately after getting it. The Stafford loan could be used to pay for tuition, books, and other school supplies.
If you are looking to get a loan for starting a business, it can be tough getting a loan from a bank if you have no credit history after being in prison for awhile. Instead, you may want to search for loans through people that you know. For example, you could ask your good friends, family members, and other acquaintances. If you can present to them a good business plan and show that you are determined to make the business work, you would have a good chance of getting a loan. You can also seek out angel investors. The sole purpose of angel investors is to invest in start ups. Finding an angel investor would be harder though since they typically invest large amounts of money and may not be interested in small start ups.
Finally, if you already have a job, you could get small payday loans for those times where you need quick cash. Payday loan services are everywhere. You could go to brick and mortar stores like Amscot or you could find a loan servicer online. Typically, you would have to show proof that you have a job by giving them a paystub. You would then write a check for a certain amount and date the check for a month later. Then the service would lend you the money. This type of money should only be used for emergencies.
There are many loan options for ex-felons. You just have to go searching for them. Along with loans, you could also considering getting free money through grants. There are many organizations that assist ex-felons get back on their feet.