WASHINGTON, July 14 (Reuters) - The U.S. Treasury Department and Federal Reserve are considering giving CIT Group Inc CIT.N a temporary government loan to give it breathing room to strengthen its balance sheet, a source familiar with regulators' thinking said on Tuesday.

The temporary loan is one option being considered to give CIT room to strengthen its balance sheet, said the source who requested anonymity because the plans are in flux.

The extra time would allow CIT to raise additional capital through debt or equity, the source said.

The source also said other options include access to the discount window and asset transfers. (Reporting by Rachelle Younglai; Editing by Anshuman Daga)