Is There a Free Money Grant to Pay Off Debt WITHOUT Paying It Back?
Lucy asked:
Is there such a thing as a Free Money Grant that I could use to pay off an existing loan WITHOUT paying it back? I'm 70+ and need to pay this off before I have to retire for the 2nd time.
There are some legitimate grants and assistance programs out there that may be able to help, but there is no general "free money grant" that pays off personal loans and never has to be repaid. Be very cautious—many companies advertise "free government grants" to pay off debt, but these are often scams. Legitimate assistance usually depends on your income, age, disability status, veteran status, housing situation, or the type of debt you have.
That said, there are several legitimate resources that may be worth exploring. While they generally won't pay off an existing personal loan directly, they may help reduce other expenses or provide assistance depending on your circumstances.
But wait - we've got more details for you below!
Get Answers. Find Help. Stay Informed.
Our free emails keep you updated on benefits, assistance programs, discounts, grants, and other resources that can help you save money and access the support you need. We also share answers to common questions from our community, so you can stay informed without spending hours searching for reliable information.
What You Need to Know
If your goal is to reduce or eliminate this loan, here are some options that may be worth looking into:
1. Check whether your lender offers hardship assistance.
Some lenders have hardship programs that may include lower monthly payments, reduced interest rates, temporary payment pauses (forbearance), or, in some situations, settlement options. Availability varies by lender.
2. Find out whether your type of debt has any relief programs available.
Some types of debt have assistance programs that aren’t available for ordinary personal loans. For example, there may be special relief options for certain student loans, medical debt, tax debt, or mortgages. The type of loan you have can make a big difference.
3. Explore hardship assistance programs.
While these programs generally don’t pay off existing personal loans, they may help cover essentials like food, utilities, prescriptions, housing costs, or property taxes. That may free up more of your own income to put toward your loan.
These Low Income Relief resources may help:
- 12 Low-Income Debt Relief Programs — explains real debt relief options, including nonprofit credit counseling and hardship programs.
- 30+ Real Hardship Grants for Low Income Americans — shows grants that may help with bills and emergencies, which could reduce pressure on your monthly budget
- 7 Powerful Programs That Can Save Seniors Over $5,000 — may help lower medication, food, utility, and property tax costs
Additional resources
- BenefitsCheckUp (National Council on Aging): Helps identify programs that may assist with food, prescriptions, utilities, property taxes, and other living expenses.
- Your local Area Agency on Aging: Can connect you with local services and benefits counselors for older adults.
- Call 2-1-1: Many communities have emergency financial assistance programs that aren’t widely advertised.
- A nonprofit credit counseling agency: May be able to review your budget and discuss available repayment or debt management options.
You may also want to look at SoloSettle (our sponsor), which helps some people negotiate eligible debts for less than the amount they owe. Solo has also previously run promotional debt-payoff giveaways. I’ve used their tools myself and found them very helpful.
Some people also choose to use crowdfunding sites such as GoFundMe to ask friends, family, or their community for help with unexpected financial hardships. While it’s certainly not guaranteed, it’s another option some people consider.
We’re rooting for you and hope this helps.
Warmly,
Low Income Relief
We’re happy to share general educational information and resources, but we can’t determine what assistance someone qualifies for. Because every financial situation is different, any available programs or protections will depend on the specific type of debt, your income, and other individual circumstances.