Providing financial assistance to federal A Federal Employee Payroll Deduction Loan is a personal loan made specifically for U.S. government workers. With this type of loan, your repayments are automatically deducted from your paycheck, making it easier to stay on track and avoid missed payments. Because federal jobs are considered stable, many lenders offer these loans with: Quick approval Flexible terms No collateral required Options for those with bad credit This type of loan is ideal for unexpected expenses like medical bills, car repairs, or emergencies. Whether you work for the USPS, VA, or any other federal agency, payroll deduction loans offer a simple, stress-free borrowing experience.employees through easy payroll deduction loans.