A government loan is a loan backed or funded by a government entity, often aimed at supporting specific groups like students, homebuyers, or small business owners. These loans generally offer lower interest rates and more favorable terms than private loans, making financing accessible to those who may not qualify for traditional loans. Examples include federal student loans, VA loans for veterans, and FHA loans for homebuyers. Government loans support the economy by promoting education, homeownership, and entrepreneurship among various population groups.