The great thing about a government loan is that it is likely to be free of the usury of private loans. It may be easier to get an unsecured private loan, but it is also a much worse idea. I'm not saying that every government loan is better than any loan from a bank, but in general you are better borrowing from the government. You see, the government makes loans available in the interest of fostering certain social developments. For example, when the government wants more people to go to school it makes government student loans more accessible. In order to encourage more people to start businesses, it makes government loans for business more available.
In contrast to the way that government loans work, the only motivation for loans in the private sector is profit. This means that they will make as much money off of you as they are legally able to do. God help you if you fall behind on your bank loan payments! You can lose your house, your car, and a large portion of your income. Government loans, by contrast, are often renegotiable. For example, if you get a government loan to go to school, you can often get it deferred. You might not have to pay off your government loans - or even begin to pay them off - until you're finished with school and employed in your field of expertise. Try getting a deal like that from a bank!
This is what I see it as so disingenuous when people on the rights talk about eliminating government loans and decreasing government spending. Many of them are only in the positions that they occupy today because of government spending. If government loan grants were cut back, they would not have their education, their businesses, or their homes. It is hypocrisy for them to ignore this fact.